Within 48 hours of this post, you are going to read about the “legislative victory” Obama scored by getting the stimulus passed.Â What a joke.
I’m not an Obama fan.Â Don’t really like him.Â Voted against him.Â However, I wish him well, because he has the hardest job of any human since Jesus.
Honestly, I’m not that upset with him today (although I thought the Bush-bashing earlier this week was in bad taste).Â However, Geithner, Summers, and Congress are the targets of my ire.
For the love of Pete, I would rather have a Congress made up of 100% Democrats, if they would govern based on principles rather than politics.
Here’s a lightning rod issue for me: The Republicans in the Senate forced the Dems to add a tax credit for new home buyers to the stimulus package.Â The Dems in the House cut it in half today, causing the stocks of home builders to drop 8% today.Â Seriously? What is the possible explanation of WHY YOU DIDNT DOUBLE IT!Â The core of the problem is that the value of houses is collapsing.Â The more incentive you give to new home buyers, the more you increase housing prices.Â That’s positively the best way you can stop the coming depression.
But wait, there’s more.Â Wanna create 4 million jobs?Â Why not just hire 4 million people at $50,000 per year for 3 years.Â $600 Billion.Â Our payroll now includes 4 million people.Â Make up a list of things we need to do to increase the economic expansion: produce steel, build cars, market cars, etc.Â There are a million jobs they can do that will help society.
Or, how about this…Â Go to the banks and offer to buy any mortgage or derivative or other instrument they want to sell.Â We buy mortgages for pennies on the dollar.Â The bank can now loan out money because the uncertainty is gone.Â We go to the homeowner and re-finance their mortgage over 35 years, thereby reducing their monthly payment.Â Are you 3 months behind? We’ll add all your past-due payments on to the end of your loan.Â Now, the government makes a huge profit.Â Or, and here’s a radical idea… the government buys mortgages and then does its own ARMs!Â We buy your 6.5% mortgage.Â We’ll refinance it at 3% interest for 3 years, then, your interest rate goes to 8%.Â If you default in 3 years when your payment goes up, we foreclose and sell your house in (presumably) a better real estate market.
The bottom line is that Congress needs to stop thinking about “gifts” and start thinking about “investments.”Â They can solve the country’s financial problems and make money in the process.