I hope Pres Obama is right but have my doubts re. economy.

[rhett o rick]

Our economy works on the bubble theory. Some big bubbles continue for decades others are smaller bubbles within the larger bubble.

We were moving along ok in our big bubble with some (the few) making it big on smaller bubbles, but overall we were ok. Then the Cons came along and decided that they weren’t making it big enough. Why not increase the rate of expansion of the bubble? Alan Greenspan said it was cool because he figured that the Cons wouldn’t get too greedy and burst the bubble (kill the goose). Alan has since admitted he was terribly wrong.

So the President says that instead of giving the masses money to survive (buy groceries and pay mortgages), which would bring about a slow recovery, he wants to give the money to the banks so they can restart the big bubble (8-1). Geitner also has made it clear IMO that he wants the government to prop up the big bubble. The money to the banks is intended to enable the banks to make loans to get people to work. Loan = debt. Somewhere we have to get out of this huge debt hole. And there is no certainty that the banks will not just keep the money and buy capital goods for themselves as some already have.

We need to return to manufacturing products in this country. Unless we do we are doomed.

And break up the banks and all corporations too large to fail.

[Taverner]

1. Our economy HAS worked on the bubble theory

From the end of WWII up to today.

That theory will not work anymore, and Obama knows it. And every indication is that we are leaving that paradigm and going to a more sustainable one.

[rhett o rick]

2. I will believe that when the banks are broken up as well as corporations like AIG. nm

[Taverner]

3. Well don't expect that or the pony either nt

[rhett o rick]

7. I know, I know, you don't have to rub it in. nm

[Fire1]

9. Did he say anything in his speech today about

'regulations' in regards to banks/financial institutions?

[rhett o rick]

10. I don't think so. I know that Geitner is pushing for self regulations ala. Reaganomics. nm

[Taverner]

11. He's leaving Congress to deal with regulation

Of course, I'm not sure I trust them...

[stillcool]

4. Don't we all?

I believe the budget is the attempt to return to manufacturing products in this country..but of course that won't be next week so it doesn't matter. Those banks and corporations that are too big to fail, have plenty of juice to take the rest of their jobs elsewhere. I think it would be a great idea. After all, GM in China, and India are turning a profit. Why should they stay here? Let them bankrupt themselves here and move on to their greener pastures.

[Tierra_y_Libertad]

5. Well, Geithner is busy creating his own bubble by printing money.

http://watchingamerica.com/News/25072/us-may-create-%E2%80%9Csuper-inflation%E2%80%9D-and-make-the-world-suffer/

As the financial crisis continues to evolve, the U.S. government plans to adopt relaxed monetary policies to save the market. And for this, all parts of the world are staying on high alert. On April 10, Hong Kong’s Wen Wei Po published a signed article indicating that the U.S.’s power consciousness will not change and that we should all be vigilant of the U.S.'s exporting inflation. Extracts from the article are shown below:

The late great American economist Milton Friedman once said that as long as the U.S. Federal Reserve drops money from a helicopter, the problems of economic recession and inflation can be solved. This means that the market can be saved as long as quantitative easing monetary policies are implemented, meaning the printing of money in full force. In 2002, the academician and present Federal Reserve Board Chairman Bernanke said the same thing, explaining his theory on monetary policy and practicing what he preaches. Either it is just a coincidence, or it may be an economic guru’s enlightening remarks and farsightedness that have enabled Bernanke to put this saying to use.

Inflation relieves deflation. Bubbles relieve bubbles.

The U.K. took the lead in announcing that it would initiate and implement “quantitative easing” monetary policies by having the Bank of England buy government bonds, lower long-term interest rates, and revive revolving credit. On March 18, the Federal Open Market Committee quickly followed along and announced that within the next six months, it would buy $300 billion of long-term government bonds in order to relieve pressure on private credit markets. It looks like the U.S. government has run out of tricks; the only option is to run the massive money printing presses in high gear and act out the myth of “inflation saving deflation and bubbles saving bubbles.” The only people who buy into this would still be those creditors who fear depreciation of foreign debt but have no other alternative.

[leftstreet]

8. You can make cool origami stuff from money

[damntexdem]

6. Everyone, including Obama, has doubts about the economy.

Except for the teabaggers and the GOP; and they're simply wrong.

Let's just hope that something halfway right is done.