Tuesday, February 24, 2009
Pork, Lipstick, and Suckers Like Me
From Gateway Pundit
Don’t know much about economics, but the economists I’ve been hearing lately don’t seem to know much either. To this ordinary guy, it looks like a rough road ahead, so I’m just going to trust my instincts and hang on tight.
A couple of months ago, I paid off my mortgage. For the first time since I was eighteen, I don’t owe anybody anything - no car payments, no student loans, nothing. My old truck still runs, but it’s rusting out underneath - kind of like our country. I’ll drive it until the frame breaks while I save up for another. I don’t feel too bad about junking my old pickup, but it’s hard watching Congress and the President junk my country.
My wife and I have worked long and hard. Can’t remember when I didn’t have at least two jobs. We scrimped, went without, raised four kids, sent them to college, and paid our bills. We still work hard, but we’re playing around some too. We have everything we need and our tastes are modest. Trying to figure out what to do with extra money is our problem now. Nice problem to have I guess, but a problem nonetheless. It’s not a lot but I don’t know where to put it.
Don’t know much about the stock market either. I’m not against putting some there , but like so many others, I’m wondering where bottom will be and it looks like we’re not close to it yet. Gold? Many are buying that and it’s up over $1000 an ounce. Maybe I’ll invest some there, but for now I’m listening, thinking, and worrying.
Obama said last Saturday he has a plan for “restoring fiscal discipline.” Uh-huh. That was a few days after announcing he wants to give $75,000,000,000 to people who can’t make their mortgage payments. We all know someone who bought more house than they could afford and defaulted, and someone else who could make payments until they burned through their equity and can’t anymore. According to CBS.com: “Homeowners in states without significant foreclosures will subsidize those in states like California, Arizona, and Florida. And borrowers who initially had affordable mortgages -- but then refinanced during the housing bubble and used their homes as ATMs -- stand to benefit.”
Now you want wagon pullers like me to pull harder because they’re jumping on? This is “restoring fiscal discipline”? Bailing out speculators and irresponsible borrowers? When the re-default rate on them is over 55% in six months? And sending the bill to people like me, my children, and my grandchildren? We’re not going to take this.
The week before, Obama and his “economists” rammed a $900,000,000,000 “economic stimulus” bill through Congress. He doesn’t have that money either. So where’s he going to get it? With the US debt at over $10 trillion and climbing fast, China is reluctant to lend us any more. So, he sent Hillary over there to try and change their minds. If I were a Chinese leader, I’d give her a firm “No.” I’d like to say no too, but my two “Republican” senators here in Maine voted for the $900,000,000,000. I’ve had it with those two RINOs, but that’s another column. My fingers are cramped typing all the zeros.
Last fall, Obama said, “You can put lipstick on a pig,” as the crowd cheered. “It's still a pig.” You were right then, Mr. President, but that’s what you’re doing now. We know pork when we see it. I’m angry, and so are millions of other ordinary guys just like me.
Looks like President Obama is going to print the money. I suspect he already is. I don’t have to be an economist to know that the value of my money, which is in cash, is going to decline unless I do something else with it. But then I think that if inflation goes up, interest rates will too and I’ll be all right. And, my money will be secured by FDIC - the Federal Deposit Insurance Corporation. That makes me feel better - except for one thing.
I’m no math genius either, but I can add and subtract. FDIC had about $52 billion to cover deposits of over $4 trillion, and that was a year ago before all those recent bank failures. What happens if there’s a bigger run on banks? Will Obama just print more and give some to me to cover my lost deposits? Won’t that lead to more inflation? Oh, but then there’ll be still higher interest rates, so I’ll be all right . . . Now I feel better . . . No I don’t.
It was simpler when I my problem was not enough money. I didn’t have time to think because I was working too hard to pay my bills. What a sucker I was, huh?