In a move yesterday reminiscent of the 2008 campaign elections, it appears Barack Obama is now “channeling” John McCain with respect to the state of the U.S. economy.
It was reported and broadcast that Mr. Obama is now of the impression that the U.S. economy is “fundamentally sound.”
I wonder who is now advising Mr. Obama?
Last month we saw the highest rate of unemployment and home foreclosures throughout the nation that this country has experienced since the Depression, exceeding that of the 1970’s recession, and 1980’s savings and loan fiasco which precipitated actually the mortgage crisis of today. It was Congress back then in a move to “stimulate” the economy and crushed housing market after the S&L fiasco who, in another “Act” of Congress, encouraged and allowed those banks to market those subprime and creative mortgages, and then resell them on Wall Street in order to “cover” their losses.
The “losses”, however, they were actually “covering” were the excessive interests rates that were being charged by the Fed at the time for the monies borrowed from them by these banks in order to extend those mortgages in the first place.
Soon, in order to further up their profits, the banks then began marketing loans which were not even based on the U.S. prime rate, but the London market’s higher LIBOR rates, which actually were no more than “loan shark” rates for those escalating and interest only loans and based upon a stronger currency (the Euro) than our own due to our increasing deficit which was also the result of Congress and the Bush Administration’s spending on the Iraq War and other “projects.”
I hate to break it to Mr. Obama, but things aren’t as rosy as they appear from the East Lawn.
The terms of these mortgage loans that are now being marketed under your “stimulus” actually have not changed in the slightest. Fixed and assumable loans are not part of this package. The ARMs and “interest only” loans are still being marketed and sold to the “new home buyers” you seem most concerned with duping again into these foreclosure contracts.
I wonder when Mr. Obama next will be channeling George Bush?
It seems he already has after less than two months in office, and is starting to sound like a used car salesman.