And For My Next Trick...

What does our wonderful gov't have up it's sleeve next? This is not a democrat versus republican thing, this is just the federal gov't in my mind. They're feeling the pressure to do something, anything. They're grasping at straws now. Their usual arsenal is just about empty now. Interest rates are at zero, they've tried pushing trillions of dollars into the big banks to keep them afloat and to stimulate lending, what's next?

Rumors of a federally run shill bank that would be used to take over toxic debt so it can be removed from the balance sheets of the banks is being tossed around. Rumors of letting the courts mandate new home values and loan terms for people filing bankruptcy is being tossed around (this one is so wrong on so many levels... I know, I'll file bankruptcy so I can get a better loan... you know people would do it). And then there's the idea of changing some accounting regulations such as the mark to market rule. If this one gets changed, all it does is change how banks debt is valued. It doesn't fix the problem. But hey, if it makes things LOOK better, who cares. If this one happens you can expect one hell of a rally on Wall Street. Again, it's all about the looks, not the substance.

I'm sure that Obama and his new crew have many ideas that they're just waiting to announce on or after Tuesday. I hope that they're better than the ones so far. I hope they have some substance to them and aren't just smoke and mirrors. The problem with the economy... the GLOBAL economy is bigger than just spending a trillion dollars on infrastructure and giving each of us $500 (in small increments in our paychecks over a 4 months period).

Until this thing plays out, which it has to do eventually, we won't be able to stabilize and then build a solid base for the future. Everything being done truly is delaying the inevitable. We need to go thru the pain. Again, the band-aid analogy... peel it off slowly or just rip it off...