OT Obama’s new economic proposal

[MadeInTaiwan]

Funny how Sen. McCain mentioned over the weekend about new economic proposals today, then announce that there is nothing new. In contrast, Sen. Obama unveils new economic stimulus plan without pre-announcing before heading into the final Pres. debate, which at this point can only reinforce views that Sen. Obama is concerned about the economy and average Americans, while McCain is adrift, and does not how to respond on the economy.

Full text of prepared remark here http://politicalticker.blogs.cnn.com/2008/10/13/happening-now-obama-in-ohio-2/#more-24237

What stood out to me is that while it is full of pandering (early rebate checks, short term burrowing against 401K w/o penalty, hold off min withdrawal requirement for seniors, tax credit for small business/start ups, foreclosure moratorium; Obama is a politician after all), it does contain a hint of reality to come

I won’t pretend this will be easy or come without cost. We’ll have to set priorities as never before, and stick to them. That means pursuing investments in areas such as energy, education and health care that bear directly on our economic future, while deferring other things we can afford to do without. It means scouring the federal budget, line-by-line, ending programs that we don’t need and making the ones we do work more efficiently and cost less.

It also means promoting a new ethic of responsibility. Part of the reason this crisis occurred is that everyone was living beyond their means – from Wall Street to Washington to even some on Main Street. CEOs got greedy. Politicians spent money they didn’t have. Lenders tricked people into buying home they couldn’t afford and some folks knew they couldn’t afford them and bought them anyway.

We’ve lived through an era of easy money, in which we were allowed and even encouraged to spend without limits; to borrow instead of save.

Now, I know that in an age of declining wages and skyrocketing costs, for many folks this was not a choice but a necessity. People have been forced to turn to credit cards and home equity loans to keep up, just like our government has borrowed from China and other creditors to help pay its bills.

But we now know how dangerous that can be. Once we get past the present emergency, which requires immediate new investments, we have to break that cycle of debt. Our long-term future requires that we do what’s necessary to scale down our deficits, grow wages and encourage personal savings again.

Obama actually places some blame with irresponsible burrowers along with all the other popular targets. The speech also prepares the voters for what will be required once the credit freeze/squeeze recedes, large tax increases along with spending re-prioritizing (At least I hope so). Man will I be screwed (I work in mil R&D) but it is better for the country and my children in the long term.

Man what a beautiful play. He separates short vs. long term challenges and proposes solutions to tackle each (well, very few detail on the difficulty for long term solution, but hey he is only a politician). He does just a tinny bit of lecturing. He hints at future sacrifices required. What a contrast to Sen. McCain. I can’t help but think this type of speech will have as calming influence come Nov 5th.

I certainly understand if conservative board members think this is only campaign talk that will get discarded once Obama is in office, that he will lead the charge of a tax and spend Dem government. However, I am encouraged, and I can’t think of anyone better at making economic, strategic, national security decision based on trade offs and explaining them to the general public.

[cr]

This isn’t off-topic IMO. Where are all the Obama cheerleaders now?

No way to spin this one:

• A temporary $3,000 tax credit to companies for each new job created in the United States over the next two years.
• Penalty free withdrawals from 401(k) and IRA retirement accounts up to a maximum of $10,000 this year and next.
• A 90-day moratorium on foreclosures for homeowners who are living in their homes and making good-faith efforts to make their mortgage payments.
• A call for the Treasury to help unfreeze markets for individual mortgages, student loans, car loans, loans for multifamily dwellings and credit card loans.

I don’t think McCain is any better. In fact, as I’ve been saying all along they’re no different. This is not “change.”

It’s time for a 3rd party.

[cr]

This isn’t off-topic IMO. Where are all the Obama cheerleaders now?

No way to spin this one:

• A temporary $3,000 tax credit to companies for each new job created in the United States over the next two years.
• Penalty free withdrawals from 401(k) and IRA retirement accounts up to a maximum of $10,000 this year and next.
• A 90-day moratorium on foreclosures for homeowners who are living in their homes and making good-faith efforts to make their mortgage payments.
• A call for the Treasury to help unfreeze markets for individual mortgages, student loans, car loans, loans for multifamily dwellings and credit card loans.

I don’t think McCain is any better. In fact, as I’ve been saying all along they’re no different. This is not “change.”

It’s time for a 3rd party.

[cr]

This isn’t off-topic IMO. Where are all the Obama cheerleaders now?

No way to spin this one:

• A temporary $3,000 tax credit to companies for each new job created in the United States over the next two years.
• Penalty free withdrawals from 401(k) and IRA retirement accounts up to a maximum of $10,000 this year and next.
• A 90-day moratorium on foreclosures for homeowners who are living in their homes and making good-faith efforts to make their mortgage payments.
• A call for the Treasury to help unfreeze markets for individual mortgages, student loans, car loans, loans for multifamily dwellings and credit card loans.

I don’t think McCain is any better. In fact, as I’ve been saying all along they’re no different. This is not “change.”

It’s time for a 3rd party.

[cr]

This isn’t off-topic IMO. Where are all the Obama cheerleaders now?

No way to spin this one:

• A temporary $3,000 tax credit to companies for each new job created in the United States over the next two years.
• Penalty free withdrawals from 401(k) and IRA retirement accounts up to a maximum of $10,000 this year and next.
• A 90-day moratorium on foreclosures for homeowners who are living in their homes and making good-faith efforts to make their mortgage payments.
• A call for the Treasury to help unfreeze markets for individual mortgages, student loans, car loans, loans for multifamily dwellings and credit card loans.

I don’t think McCain is any better. In fact, as I’ve been saying all along they’re no different. This is not “change.”

It’s time for a 3rd party.

[cr]

This isn’t off-topic IMO. Where are all the Obama cheerleaders now?

No way to spin this one:

• A temporary $3,000 tax credit to companies for each new job created in the United States over the next two years.
• Penalty free withdrawals from 401(k) and IRA retirement accounts up to a maximum of $10,000 this year and next.
• A 90-day moratorium on foreclosures for homeowners who are living in their homes and making good-faith efforts to make their mortgage payments.
• A call for the Treasury to help unfreeze markets for individual mortgages, student loans, car loans, loans for multifamily dwellings and credit card loans.

I don’t think McCain is any better. In fact, as I’ve been saying all along they’re no different. This is not “change.”

It’s time for a 3rd party.

[MadeInTaiwan]

[quote=cooprider]This isn’t off-topic IMO. Where are all the Obama cheerleaders now?

No way to spin this one:

• A temporary $3,000 tax credit to companies for each new job created in the United States over the next two years.
• Penalty free withdrawals from 401(k) and IRA retirement accounts up to a maximum of $10,000 this year and next.
• A 90-day moratorium on foreclosures for homeowners who are living in their homes and making good-faith efforts to make their mortgage payments.
• A call for the Treasury to help unfreeze markets for individual mortgages, student loans, car loans, loans for multifamily dwellings and credit card loans.

I don’t think McCain is any better. In fact, as I’ve been saying all along they’re no different. This is not “change.”

It’s time for a 3rd party. [/quote]

I am one of those Obama cheerleaders. Not trying to spin this. It is pure pandering. It might slow the housing price decline, but I can’t imagine it stopping the slide. On one hand, it punishes those who were patient, on the other, a too precipitous a decline is bad for the economy no? certainly no better than the unrealistic climb.

My main point was that while Obama panders like all politicians, he also shows that he understand this is only a temporary solution. Buried in the speech he talks about having to live within our means, which implies spending cuts and tax increases. It implies (at least my reading) that once we unfreeze the credit market then belt tightening will have to continue for all.

[MadeInTaiwan]

[quote=cooprider]This isn’t off-topic IMO. Where are all the Obama cheerleaders now?

No way to spin this one:

• A temporary $3,000 tax credit to companies for each new job created in the United States over the next two years.
• Penalty free withdrawals from 401(k) and IRA retirement accounts up to a maximum of $10,000 this year and next.
• A 90-day moratorium on foreclosures for homeowners who are living in their homes and making good-faith efforts to make their mortgage payments.
• A call for the Treasury to help unfreeze markets for individual mortgages, student loans, car loans, loans for multifamily dwellings and credit card loans.

I don’t think McCain is any better. In fact, as I’ve been saying all along they’re no different. This is not “change.”

It’s time for a 3rd party. [/quote]

I am one of those Obama cheerleaders. Not trying to spin this. It is pure pandering. It might slow the housing price decline, but I can’t imagine it stopping the slide. On one hand, it punishes those who were patient, on the other, a too precipitous a decline is bad for the economy no? certainly no better than the unrealistic climb.

My main point was that while Obama panders like all politicians, he also shows that he understand this is only a temporary solution. Buried in the speech he talks about having to live within our means, which implies spending cuts and tax increases. It implies (at least my reading) that once we unfreeze the credit market then belt tightening will have to continue for all.

[MadeInTaiwan]

[quote=cooprider]This isn’t off-topic IMO. Where are all the Obama cheerleaders now?

No way to spin this one:

• A temporary $3,000 tax credit to companies for each new job created in the United States over the next two years.
• Penalty free withdrawals from 401(k) and IRA retirement accounts up to a maximum of $10,000 this year and next.
• A 90-day moratorium on foreclosures for homeowners who are living in their homes and making good-faith efforts to make their mortgage payments.
• A call for the Treasury to help unfreeze markets for individual mortgages, student loans, car loans, loans for multifamily dwellings and credit card loans.

I don’t think McCain is any better. In fact, as I’ve been saying all along they’re no different. This is not “change.”

It’s time for a 3rd party. [/quote]

I am one of those Obama cheerleaders. Not trying to spin this. It is pure pandering. It might slow the housing price decline, but I can’t imagine it stopping the slide. On one hand, it punishes those who were patient, on the other, a too precipitous a decline is bad for the economy no? certainly no better than the unrealistic climb.

My main point was that while Obama panders like all politicians, he also shows that he understand this is only a temporary solution. Buried in the speech he talks about having to live within our means, which implies spending cuts and tax increases. It implies (at least my reading) that once we unfreeze the credit market then belt tightening will have to continue for all.

[MadeInTaiwan]

[quote=cooprider]This isn’t off-topic IMO. Where are all the Obama cheerleaders now?

No way to spin this one:

• A temporary $3,000 tax credit to companies for each new job created in the United States over the next two years.
• Penalty free withdrawals from 401(k) and IRA retirement accounts up to a maximum of $10,000 this year and next.
• A 90-day moratorium on foreclosures for homeowners who are living in their homes and making good-faith efforts to make their mortgage payments.
• A call for the Treasury to help unfreeze markets for individual mortgages, student loans, car loans, loans for multifamily dwellings and credit card loans.

I don’t think McCain is any better. In fact, as I’ve been saying all along they’re no different. This is not “change.”

It’s time for a 3rd party. [/quote]

I am one of those Obama cheerleaders. Not trying to spin this. It is pure pandering. It might slow the housing price decline, but I can’t imagine it stopping the slide. On one hand, it punishes those who were patient, on the other, a too precipitous a decline is bad for the economy no? certainly no better than the unrealistic climb.

My main point was that while Obama panders like all politicians, he also shows that he understand this is only a temporary solution. Buried in the speech he talks about having to live within our means, which implies spending cuts and tax increases. It implies (at least my reading) that once we unfreeze the credit market then belt tightening will have to continue for all.

[MadeInTaiwan]

[quote=cooprider]This isn’t off-topic IMO. Where are all the Obama cheerleaders now?

No way to spin this one:

• A temporary $3,000 tax credit to companies for each new job created in the United States over the next two years.
• Penalty free withdrawals from 401(k) and IRA retirement accounts up to a maximum of $10,000 this year and next.
• A 90-day moratorium on foreclosures for homeowners who are living in their homes and making good-faith efforts to make their mortgage payments.
• A call for the Treasury to help unfreeze markets for individual mortgages, student loans, car loans, loans for multifamily dwellings and credit card loans.

I don’t think McCain is any better. In fact, as I’ve been saying all along they’re no different. This is not “change.”

It’s time for a 3rd party. [/quote]

I am one of those Obama cheerleaders. Not trying to spin this. It is pure pandering. It might slow the housing price decline, but I can’t imagine it stopping the slide. On one hand, it punishes those who were patient, on the other, a too precipitous a decline is bad for the economy no? certainly no better than the unrealistic climb.

My main point was that while Obama panders like all politicians, he also shows that he understand this is only a temporary solution. Buried in the speech he talks about having to live within our means, which implies spending cuts and tax increases. It implies (at least my reading) that once we unfreeze the credit market then belt tightening will have to continue for all.

[HereWeGo]

I don’t see how a debtor nation can continue to spit in the eye of creditors. Isn’t the idea to mitigate the credit crisis rather than to exacerbate it?

[HereWeGo]

I don’t see how a debtor nation can continue to spit in the eye of creditors. Isn’t the idea to mitigate the credit crisis rather than to exacerbate it?

[HereWeGo]

I don’t see how a debtor nation can continue to spit in the eye of creditors. Isn’t the idea to mitigate the credit crisis rather than to exacerbate it?

[HereWeGo]

I don’t see how a debtor nation can continue to spit in the eye of creditors. Isn’t the idea to mitigate the credit crisis rather than to exacerbate it?

[Author]

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