The LuLac Edition #692, Jan. 11th, 2009
PHOTO INDEX: PRESIDENT TO BE BARACK OBAMA.
OBAMA ON BAILOUTS
Barack Obama wants to make it easier to monitor how the second $350 billion installment of the financial bailout is spent and says homeowners and small businesses should get some help.
"We can regain the confidence of both Congress and the American people in that this is not just money that is being given to banks without any strings attached and nobody knows what happens, but rather that it is targeted very specifically at getting credit flowing again to businesses and families," the president-elect said. Obama's economic team has been talking with the Bush administration about having Treasury Secretary Henry Paulson ask Congress as early as this week for access to the rest of the bailout fund. If Congress rejected such a request, a presidential veto could still free up the money, unless Congress overrode the veto. Senate Majority Leader Harry Reid indicated during a rare Senate session Sunday that Bush and Obama officials are near agreement on submitting notice to Congress about using the remaining $350 billion. The Congressional Oversight Panel raised detailed questions last week about how banks are spending the first $350 billion, how the money will combat the rising tide of home foreclosures and Treasury's overall strategy for the rescue. In instance after instance, the panel said, the Treasury Department did not offer adequate responses. Obama conceded it will be difficult to enforce his pledge to ban congressionally earmarked projects from the nearly $800 billion economic stimulus plan he's negotiating with Congress. The Presidential promises of the Obama campaign are now running smack dab into the reality of economics. The new President will be forced to make hard choices and really tork some people off. But these are hard times and they call for hard choices.
posted by David Yonki @ 8:34 PM
3 comments
3 Comments:
The President-Elect is already backpedaling on a number of campaign promises. He may not be closing Guantanamo Boy quickly, either. A Chicago Tribune article quotes him as saying, "It is more difficult than I think a lot of people realize."
He's also finding out that folks from his own party are opposed to some of his ideas, like the $3000 tax break for businesses hiring new employees.(That may not seem like a great idea right now, but when the economy finally bottoms it might an incentive for businesses to start hiring again a bit sooner than they would otherwise.)
Will he truly bring change? Time will tell.
But odds are he'll be doing a lot more backpedaling over the next few months.
Reality bites, especially in this economy. And especially in Washington.
I don't know if you saw 60 minutes, but it seems that these banking/brokerage firms were more responsible for the increase in energy costs than the oil companies. According to the report the biggest oil company in the U.S. is not Exxon/Mobile, it is Morgan Stanley. It seems that these brokerages have really broken the American people.
It was also interesting to note that supply and demand had very little to do with either the increase or decrease. It was all driven by speculation.
Rob a convenience store, get $50 bucks and go to jail. Bilk people out of $50 billion and get to stay
in your $7 million dollar penthouse and unload your assets while waiting for trial!
Aint that America?
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