Dealing with the changes

President Obama gave a speech on Tuesday regarding his new job creation plan. Here is the complete transcript of that speech. If you remember from February, the Stimulus/Spending package passed was to stimulate the economy. It was to employ people by creating "shovel ready" projects. Well it seems the shovels just kind of sat in the garage.

54 Percent of Recovery Act Highway and Transit Funds in Projects Under Way Shovels are in the ground on projects accounting for more than half of the funds targeted to highway and transit investments under the American Recovery and Reinvestment Act, the Committee on Transportation and Infrastructure announced today.

source.

As we end the year, 11 months later and just a little over half of those projects are starting. Unemployment has not gone down, in fact it has gone up.

Monthly Unemployment from U.S. Bureau of Labor Statistics
Jan 7.6
Feb 8.1
Mar 8.5
Apr 8.9
May 9.4
Jun 9.5
Jul 9.4
Aug 9.7
Sep 9.8
Oct 10.2
Nov 10.0


Remember in the cartoon when Bullwinkle would try to pull a rabbit out of the hat:


No disrespect to Sarah Palin on that one, the video had the best sound I could find. But no matter how many times Bullwinkle went to that hat, the results were different. The rabbit never appeared. So it seems like President Obama is now going back to the hat.

The stimulus/spending package did not accomplish what it was signed to do. It was simply another pork spending bill. But now we have President Obama talking about a real plan. Why didn't he do this in February? Did it take him that long to find his Reagan guidebook to the US Economy? So what does Obama have in mind that I approve of so greatly:

First, we're proposing a series of steps to help small businesses grow and hire new staff. Over the past 15 years, small businesses have created roughly 65 percent of all new jobs in America. These are companies formed around kitchen tables in family meetings, formed when an entrepreneur takes a chance on a dream, formed when a worker decides it's time she became her own boss. These are also companies that drive innovation, producing 13 times more patents per employee than large companies. And it's worth remembering, every once in a while a small business becomes a big business -- and changes the world.

source
Thank you Mr. President, it was a long time coming, but you finally saw the light. You bailed out the banks, bailed out the poorly managed automakers (Why is Ford doing so well?) and you realize that even if those corporations are doing well, GUESS WHAT? NO ONE has any money to buy anything. Small business is what founded this country. Before there was a Walmart in every little Podunk, it was a 5 and 10 store in Arkansas. Before Bass Pro had over 40 stores nationwide, it was a bait section in the back of Mr. Morris' liquor store. It is time to restart Middle America. From the corner gas station to the neighborhood doughnut shop, these small business' are where recovery will begin.

46 percent of "shovel ready" projects from February have not started. Where is that money? Why the delay? The simple answer is government bureaucracy. Let's hope the tax cuts and small business loans are processed quicker. I commend President Obama for finding a solution that may actually work, too bad it took most of his first year in office. Let's see if he can stay on this right track next year as well.

It seems with the recent news it is easy to be distracted. Sometimes if you focus on the trivial you can lose focus on the big picture. The one factor that still affects us all is the economy. I still remember when President Obama took office his number one goal was to fix the economy. He is now measuring that progress in terms of fewer jobs lost. That is one way to look at it, but still does not make everything peachy.

My common feeling is that the employed never had a recession. I of course do not mean that in any disrespect to those who are not as fortunate. Believe me if I had the power I would employ everyone in this community. But lucky for us there are some people trying to actually make our local economy better.

What I have seen lately though is criticism of those people. Of course the big story here in Panama City was the airport. Being a fiscal conservative I of course was against spending $318 million for a city that only has one airline and 8 flights currently. But I am glad my sentiment was not shared by our county and city leaders. There was a plan finally revealed and now we have Southwest Airlines arriving in May. Yes, this deal was heavily subsidized by the St. Joe company. Yes, St Joe company will profit from their land sales. But once again, let's look at the ultimate effect on our economy. Just google "the southwest effect" and you will see what has happened in other cities. Right out of the gate Southwest is going to have 35 new jobs. A small drop in the bucket, but the potential for growth in that area is tremendous. There are plans for an industrial/ business park and attracting major corporations. Personally, you can take me out of the skeptic box on that one. I think this will be a major achievement by Bay County.

The other big development is Coastal WET. This California based company will bring 200 jobs to Panama City. Those jobs will average $37,000 which is a good salary in a city that is based on hospitality. Of course there are CRA incentives totalling $1.6 million in that deal. That of course is taxpayer money. But I am sure if you are one of those 200 people there will be no complaints. This is common for cities across the country to do. The economy is so competitive today that often you have to offer more than a pretty lot and a nice climate. Again I think this is a great move for our future. And my hope is that Coastal WET has success and that is used to attract further businesses.

I know there are skeptics that live here. I think that comes from experience. I am just a two year resident and admittedly naive to many of the business relations here. But from what I seen reported in the newspaper and on television, it seems we have some business leaders with vision. We also have some residents that long for the days when there were no condos on Front Beach, only small hotels. They long for the deserted beaches and the respectable Spring Breakers.

Unfortunately we can not go back in time. So at this point we can all either complain about how it is or help make it what it can be. It is still about the economy, no matter what the news says. Sometimes we just need an adjustment in our focus.

It seems that Senator Lugar (R-IN) has a good idea today. He is finally a voice of reason on Capitol Hill.

“The war is terribly important,” Lugar said. “Jobs and our economy are terribly important. So this may be an audacious suggestion, but I would suggest we put aside the health care debate until next year, the same way we put cap and trade and climate change, and talk now about the essentials: the war and money.”

I have commented before that this administration is like a child with several puzzles. The only problem is they are starting new puzzles before they complete the first.

So exactly where is all the money coming from? How far into debt will this country go?

This national debt clock is the most detailed I have seen. I think it should be posted on every television station every night. How many Americans actually know about our debt in this much detail? Most only know we are over 12 trillion in debt. But did you know that is around 85 percent of the GDP? Take a look at some of the other numbers. I was completely surprised by many of these myself.

We can not bailout corporations, fix the economy, save the planet from global warming, fight a war on two fronts and reform health care at the same time. At some point someone has to say stop. I commend Senator Lugar for doing just that. I hope more of our elected officials will do the same.

Meanwhile, President Obama, for the sake of this nation, complete ONE puzzle at a time.

President Obama will speak on Wall Street, Monday. The speech marks the one year anniversary of Lehman Brothers collapse. It is being viewed as a rally cry for the markets. President Obama should have less controversy than trying to speak to school children. This as some are saying our economy is improving. What hasn't improved yet is unemployment. It hit 9.7 percent in August. This was the highest since 1983. What is more staggering is this:

Since the recession began in December 2007, the number of unemployed persons has risen by 7.4 million, and the unemployment rate has grown by 4.8 percentage points.

source

In less than two years, 7.4 million people became unemployed. And as the Lehman Brothers article suggests, it was all caused by one company. The domino effect then took over. So what if Lehman Brothers had been bailed out? Did the bailouts actually work? Are they responsible for what looks like the end of the recession? Or is it simply the normal economic cycle correcting itself? Those answers depend on who you ask.

But what if you are in a situation like me? I don't own a house, I don't own any stock. My wife has stock in her 401K, which seems to be recovering. I continued for these 2 years paying my rent, buying groceries and paying the bills. I did switch jobs on my own decision. I of course have had my hours cut but that is typical in the hotel business. Fewer rooms rented requires that occasionally. So if I was locked in a cave and never watched the news, would I know we were in a recession? I think it all comes back to perception. If people are told the economy is bad, they will be more frugal. They may hold off on buying that new car or big screen television. Which isn't always a bad thing. I think for too long Americans have been spoiled. And if this recession has any good effects, it is that of teaching us to live within our means again. For I know that many have had it much worse and that was their only choice.

So I do hope that the billions we have added to our national deficit are helping. I want the signs of economic recovery to continue. Was I wrong about the bailout bills? Perhaps. Claims are made of a million jobs being created or saved by the $787 billion stimulus bill. But my concern is still the long term effects. Will taxes be raised in the years to come? Will the continuous spending cause inflation? Only the future has those answers. But I am hopeful we are on the right path. I also encourage this administration to stay focused on economic recovery before tackling health care. Without a source of income, it doesn't matter what insurance plan is available.

Home sales for June have set a 9 year record. Sales increased 11 percent, however the median price decreased 12 percent from last years. This makes me think that people are sacrificing prices to get out of the mortgage. Which in a recession economy makes sense. This is good news for the economy and a sign that the recession could soon be over. But what was the cost? And if we had let the economy run it's normal cycle, what point would be at today? It is easy to second guess the decisions made by Congress and we can not go back in time. These are questions we will never know the answer to. But the sign of a reviving housing market should stimulate more sales and Wall Street will reflect it also.

The challenge to us is to build a new and firmer foundation for the future--for a sound economy, for a more effective government, for more political trust, and for a stable peace--so that the America our children inherit will be even stronger and even better than it is today.
.
Together, we've already begun to build the foundation for confidence in our economic system. During the last 2 years, in bringing our economy out of the deepest recession since the 1930's, we've created 7,100,000 new jobs. The unemployment rate has gone down 25 percent. And now we must redouble our fight against the persistent inflation that has wracked our country for more than a decade. That's our important domestic issue, and we must do it together.

Three months ago, I outlined to the Nation a balanced anti-inflation program that couples responsible government restraint with responsible wage and price restraint. It's based upon my knowledge that there is a more powerful force than government compulsion--the force created by the cooperative efforts of millions of Americans working toward a common goal.


The 1980 budget provides enough spending restraint to begin unwinding inflation, but enough support for our country to keep American workers productive and to encourage the investments that provide new jobs. We will continue to mobilize our Nation's resources to reduce our trade deficit substantially this year and to maintain the strength of the American dollar.

A responsible budget is not our only weapon to control inflation. We must act now to protect all Americans from health care costs that are rising $1 million per hour, 24 hours a day, doubling every 5 years. We must take control of the largest contributor to that inflation: skyrocketing hospital costs.
We must also fight inflation by improvements and better enforcement of our antitrust laws and by reducing government obstacles to competition in the private sector.

We must begin to scrutinize the overall effect of regulation in our economy. Through deregulation of the airline industry we've increased profits, cut prices for all Americans, and begun--for one of the few times in the history of our Nation--to actually dismantle a major Federal bureaucracy. This year, we must begin the effort to reform our regulatory processes for the railroad, bus, and the trucking industries.

America has the greatest economic system in the world. Let's reduce government interference and give it a chance to work.
1979 State of the Union , President Carter

I'm speaking to you tonight to give you a report on the state of our Nation's economy. I regret to say that we're in the worst economic mess since the Great Depression.

A few days ago I was presented with a report I'd asked for, a comprehensive audit, if you will, of our economic condition. You won't like it. I didn't like it. But we have to face the truth and then go to work to turn things around. And make no mistake about it, we can turn them around.

The Federal budget is out of control, and we face runaway deficits of almost $80 billion for this budget year that ends September 30th. That deficit is larger than the entire Federal budget in 1957, and so is the almost $80 billion we will pay in interest this year on the national debt.

Twenty years ago, in 1960, our Federal Government payroll was less than $13 billion. Today it is 75 billion. During these 20 years our population has only increased by 23.3 percent. The Federal budget has gone up 528 percent.

Now, we've just had 2 years of back-to-back double-digit inflation -- 13.3 percent in 1979, 12.4 percent last year. The last time this happened was in World War I.

The percentage of your earnings the Federal Government took in taxes in 1960 has almost doubled.
And finally there are 7 million Americans caught up in the personal indignity and human tragedy of unemployment. If they stood in a line, allowing 3 feet for each person, the line would reach from the coast of Maine to California.

Regulations adopted by government with the best of intentions have added $666 to the cost of an automobile. It is estimated that altogether regulations of every kind, on shopkeepers, farmers, and major industries, add $100 billion or more to the cost of the goods and services we buy. And then another 20 billion is spent by government handling the paperwork created by those regulations
We know now that inflation results from all that deficit spending. Government has only two ways of getting money other than raising taxes. It can go into the money market and borrow, competing with its own citizens and driving up interest rates, which it has done, or it can print money, and it's done that. Both methods are inflationary.

It's time to recognize that we've come to a turning point. We're threatened with an economic calamity of tremendous proportions, and the old business-as-usual treatment can't save us. Together, we must chart a different course.

We can leave our children with an unrepayable massive debt and a shattered economy, or we can leave them liberty in a land where every individual has the opportunity to be whatever God intended us to be. All it takes is a little common sense and recognition of our own ability. Together we can forge a new beginning for America..
Address to the nation, February 1981, President Reagan

Tonight, with a thankful heart, I have asked for a final opportunity to share some thoughts on the journey we have traveled together and the future of our nation.

For eight years, we have also striven to expand opportunity and hope here at home. Across our country, students are rising to meet higher standards in public schools. A new Medicare prescription drug benefit is bringing peace of mind to seniors and the disabled. Every taxpayer pays lower income taxes.
When challenges to our prosperity emerged, we rose to meet them. Facing the prospect of a financial collapse, we took decisive measures to safeguard our economy. These are very tough times for hardworking families, but the toll would be far worse if we had not acted.

All Americans are in this together. And together, with determination and hard work, we will restore our economy to the path of growth. We will show the world once again the resilience of America's free enterprise system.

I have confidence in the promise of America because I know the character of our people. This is a nation that inspires immigrants to risk everything for the dream of freedom.
President Bush farewell speech, January 2009

That we are in the midst of crisis is now well understood. Our nation is at war, against a far-reaching network of violence and hatred. Our economy is badly weakened, a consequence of greed and irresponsibility on the part of some, but also our collective failure to make hard choices and prepare the nation for a new age. Homes have been lost; jobs shed; businesses shuttered. Our health care is too costly; our schools fail too many; and each day brings further evidence that the ways we use energy strengthen our adversaries and threaten our planet.

These are the indicators of crisis, subject to data and statistics. Less measurable but no less profound is a sapping of confidence across our land -- a nagging fear that America's decline is inevitable, and that the next generation must lower its sights.

In reaffirming the greatness of our nation, we understand that greatness is never a given. It must be earned. Our journey has never been one of shortcuts or settling for less. It has not been the path for the faint hearted -- for those who prefer leisure over work, or seek only the pleasures of riches and fame. Rather, it has been the risk-takers, the doers, the makers of things -- some celebrated, but more often men and women obscure in their labor -- who have carried us up the long, rugged path toward prosperity and freedom.

Nor is the question before us whether the market is a force for good or ill. Its power to generate wealth and expand freedom is unmatched, but this crisis has reminded us that without a watchful eye, the market can spin out of control -- and that a nation cannot prosper long when it favors only the prosperous. The success of our economy has always depended not just on the size of our gross domestic product, but on the reach of our prosperity; on our ability to extend opportunity to every willing heart -- not out of charity, but because it is the surest route to our common good.

America. In the face of our common dangers, in this winter of our hardship, let us remember these timeless words. With hope and virtue, let us brave once more the icy currents, and endure what storms may come. Let it be said by our children's children that when we were tested, we refused to let this journey end, that we did not turn back, nor did we falter; and with eyes fixed on the horizon and God's grace upon us, we carried forth that great gift of freedom and delivered it safely to future generations.
Obama's inaugural address, January 2009

"I know it's going to be the private sector that leads this country out of the current economic times we're in. You can spend your money better than the government can spend your money."

"Government does not create wealth. The major role for the government is to create an environment where people take risks to expand the job rate in the United States,"

"I am told, 'If you do not move strongly, Mr. President, you will be a president overseeing a depression that will ultimately be greater than the Great Depression, I firmly believe it was necessary to put money in our banks to make sure our financial system did not collapse. ... I did not want there to be bread lines, to be a great depression."
Bush speech June 2009

With the recent announcement that unemployment is at the highest since 1979, I thought I would go back and see what our former presidents said about their own economy at the time. It is interesting some of the similarities. And I really would hope our current president is also a student of history. President Obama, please learn from our economic past. The subprime debacle, was, in many opinions, created by CRA regulations forced banks to make unstable loans. The TARP program passed by President Bush is working as JP Morgan/ Chase pays it all back. By paying back the $25 billion, they free themselves from the government choke chain. The stimulus/spending package passed as one of President's Obama first really cool things,in contrast, as of May 28th, not much has been spent.
Which I think is great. Maybe we didn't need to spend all the money in the law? Maybe someone is actually realizing if you keep throwing money down the well, it doesn't make the water taste any better.

Here is the January 28th story when the Stimulus Package gained House approval, without any GOP votes of course. From the same article:

“I hope that we can continue to strengthen this plan before it gets to my desk,” he said. “But what we can’t do is drag our feet or allow the same partisan differences to get in our way. We must move swiftly and boldly to put Americans back to work, and that is exactly what this plan begins to do.”

Well, Mr. President, did the plan do that? How many people are we putting back to work? Unemployment continues to rise, but fewer jobs are being lost at a slower rate. The administration feels this is a good thing. But this is like telling the farmer that your barn is still burning, but it is burning slower. Someone has to put out the fire. And it will not be the government. But I doubt President Obama has read any of the quotes I started with. If he has read them, he does not believe them. For the path continues as yesterday he released the 101 page plan for Financial Regulatory Reform. I wonder what section speaks of how Congress caused the housing market, and thus the banking collapse to begin with? It was government forcing banks to lend under CRA to people that did not have the capability and/or character to repay the loans. So how is more regulation the answer? I still believe in my heart that Ronald Reagan was correct. "Government is not the solution, Government is the problem". A simple premise often forgot. Wealth is created by individuals and not government, government only taxes industry out of existence. But now with these new regulations, the Federal Reserve will have even more power over banks and credit card companies. I am not sure what road we just turned off, but the destination is not economic recovery.

So anyways, after our president decided to make history and fire a private corporation CEO, it was off to London. Yes, it is the G20 summit. Remember how much the last one accomplished? This one should pale in comparison. Just browsing some of the news this afternoon and much to my surprise BlackBook makes a startling discovery.. And I quote from the headline regarding our own first lady "she is no French hooker". Was there ever any doubt? Why would someone even write that as the headline? Michelle Obama is obviously the most glamorous first lady since Jackie O. Just watching television today I have counted 4 different outfits, including a daring bare shoulders number that kind of look liked a lingerie top.

The first family also made history today when they met the queen. . This of course being in her private residence which is never done. One can only presume they discussed such topics as how to make the United States more similar to a monarchy. But I wasn't there, so who really knows?

Then we have this lovely picture:


Our president Obama shaking hands with Chinese President Hu . Which there is nothing wrong with this , they are part of the world economy. Although we have recalled several toys and other products from China, they would never want to harm us intentionally. Or would they? Several sources which I have listed below are reporting that China is building a missile system to destroy ships such as our own Navy aircraft carriers that patrol international waters. Here are the sources:

DefPro
Fox News
US Naval Institute
China Confidential **blog**

At this point the existence seems to be a substantiated rumor. The Pentagon has not confirmed this yet. But I wonder if President Hu had his fingers crossed as he shook hands with our fearless leader? Is this just lip service to our countries amiable future relations? Is President Hu aware of this weapon being developed? And who is with our own president to explain to him such things as military intelligence and weaponry? Sorry folks, this is not an April Fools joke, although we may wish it was.

What the G20 will end up is being a media circus as always. Protests turned violent this morning in London and people smashed windows, broke into banks and fought with police officers. The G20 has no authority. It is a high profile meet and greet and good opportunity to shake hands and be photographed doing it. At the end of this meeting all the country leaders will go home and then decide what to do in the future. I hope our president comes home with some good ideas. A new economic direction for our own country is dependent on the world market. Meanwhile, did you see what the first lady is wearing now....

Analysis of last nights speech from President Obama.

OBAMA: Good evening. Now, before I take questions from the correspondents, I want to give everyone who's watching tonight an update on the steps we're taking to move this economy from recession to recovery, and ultimately to prosperity.

(oh, that's the direction we are going? let me know when that starts.)

Now, it's important to remember that this crisis didn't happen overnight and it didn't result from any one action or decision. It took many years and many failures to lead us here. And it will take many months and many different solutions to lead us out. There are no quick fixes, and there are no silver bullets.

(because if there were then George Bush would have used them. The president is really saying I do not know how to fix this yet.)

That's why we've put in place a comprehensive strategy designed to attack this crisis on all fronts. It's a strategy to create jobs, to help responsible homeowners, to restart lending and to grow our economy over the long term. And we're beginning to see signs of progress.

(all fronts, sounds like he is declaring war on the recession, we know how that works, see also- war on crime, war on drugs and war on poverty)

The first step we took was to pass a recovery plan to jump-start job creation and put money in people's pockets. This plan's already saved the jobs of teachers and police officers. It's creating construction jobs to rebuild roads and bridges.

(but if you aren't a teacher,police officer or construction worker? sorry my county is still at 10 percent unemployed)

And yesterday I met with a man whose company is reopening a factory outside of Pittsburgh that's rehiring workers to build some of the most energy-efficient windows in the world.

(Al Gore wrote this line, see also- back story how in Chicago I supported global warming credits)

And this plan will provide a tax cut to 95 percent of all working families that will appear in people's paychecks by April 1.

( tax cut sounds so much better than an average $20 more in your check. Thanks I can get gas now.)

The second step we took was to launch a plan to stabilize the housing market and help responsible homeowners stay in their homes. This plan's one reason that mortgage interest rates are now at near historic lows.

(mortgage rates are low but NOW the lenders are actually screening applicants which would have avoided this whole crisis. Rates can be 2 percent but you still have to qualify.)

We've already seen a jump in refinancing of some mortgages, as homeowners take advantage of lower rates. And every American should know that up to 40 percent of all mortgages are now eligible for refinancing.

(after Freddie and Fannie crashed the housing market you can now help mortgage companies profit from you again)

This is the equivalent of another tax cut, and we're also beginning to see signs of increased sales and stabilizing home prices for the first time in a very long time.

(unless you rent an apartment which I do and it means nothing to me.)

The third part of our strategy is to restart the flow of credit to families and businesses. To that end, we've launched a program designed to support the markets for more affordable auto loans, student loans and small-business loans, a program that's already securitized more of this lending in the last week than in the last four months combined.

(Does this country really need more debt? why was personal debt not bailed out? I am paying off my debt and both my wife and I drive 10 year old cars that are paid for. more debt is the problem not the solution)

Yesterday, Secretary Geithner announced a new plan that will partner government resources with private investment to buy up the assets that are preventing our banks from lending money.

(and ensure our grandchildren will be paying for over $1 trillion in debt for years to come)

And we will continue to do whatever is necessary in the weeks ahead to ensure the banks Americans depend on have the money they need to lend, even if the economy gets worse.

(thus incurring inflation by throwing even more money into the system and devaluing the US dollar)

Finally, the most critical part of our strategy is to ensure that we do not return to an economic cycle of bubble and bust in this country. We know that an economy built on reckless speculation, inflated home prices, and maxed-out credit cards does not create lasting wealth. It creates the illusion of prosperity, and it's endangered us all.

(the DOW had a 498 point bubble on Monday, that will all be lost by Friday as investors still do not believe the fairy tale being sold by this president)

The budget I submitted to Congress will build our economic recovery on a stronger foundation so that we don't face another crisis like this 10 or 20 years from now.

(at least until a Republican gets into office, pork spending never insures prosperity)

We invest in the renewable sources of energy that will lead to new jobs, new businesses and less dependence on foreign oil. We invest in our schools and our teachers, so that our children have the skills they need to compete with any workers in the world.

(been there, tried that, if we could not be free of foreign oil in the 70's why would we now?, The oil industry will not allow, and the Big 3 automakers can not profitably build fuel efficient or alternative fuel vehicles)

We invest in reform that will bring down the cost of health care for families, businesses and our government.

(the government will socialize health care in my first four years)

And in this budget, we have — we have to make the tough choices necessary to cut our deficit in half by the end of my first term, even under the most pessimistic estimates.

( spending $700 billion in the pork package was okay, but now we need to cut the deficit)

At the end of the day, the best way to bring our deficit down in the long run is not with a budget that continues the very same policies that have led us to a narrow prosperity and massive debt. It's with a budget that leads to broad economic growth by moving from an era of borrow and spend to one where we save and invest.

(basic economics, tax more , spend less, although in this administration he will increase both)

And that's what clean energy jobs and businesses will do all across America. That's what a highly skilled work force can do all across America. That's what an efficient health care system that controls costs and entitlements like Medicare and Medicaid will do.

(lets put more able body people on Medicare, give me some details on the skilled work force, and do you think hospitals are actually going to control costs billed to the government? are you taxing them at 90 percent if they don't????)

That's why this budget is inseparable from this recovery — because it is what lays the foundation for a secure and lasting prosperity.

(we got to spend more and put the taxpayers farther in debt in order to be prosperous???)

The road to that prosperity is still long, and we will hit our share of bumps and setbacks before it ends. But we must remember that we can get there if we travel that road as one nation, as one people.

(unfortunately President Obama doesn't have the map and he is driving us off a cliff)

You know, there was a lot of outrage and finger-pointing last week, and much of it is understandable. I'm as angry as anybody about those bonuses that went to some of the very same individuals who brought our financial system to its knees, partly because it's yet another symptom of the culture that led us to this point.

(yes, that tends to happen when your top cabinet members create confusion on who knew what and when, you will get used to that)

But one of the most important lessons to learn from this crisis is that our economy only works if we recognize that we're all in this together, that we all have responsibilities to each other and to our country.

(yes, we are all equally punished by your policies that will not fix the economy)

Bankers and executives on Wall Street need to realize that enriching themselves on the taxpayers' dime is inexcusable, that the days of outsized rewards and reckless speculation that puts us all at risk have to be over.

(Wall Street, DC owns you now, you will do as told or face the consequences)

At the same time, the rest of us can't afford to demonize every investor or entrepreneur who seeks to make a profit. That drive is what has always fueled our prosperity, and it is what will ultimately get these banks lending and our economy moving once more.

(this line brought to you by GOP for Obama)

We'll recover from this recession, but it will take time, it will take patience and it will take an understanding that, when we all work together, when each of us looks beyond our own short-term interest to the wider set of obligations we have towards each other, that's when we succeed, that's when we prosper and that's what is needed right now.

(how can the majority of Americans look towards each other when we can not pay our own bills, are barely keeping food on the table or making the mortgage?)

So let's look towards the future with a renewed sense of common purpose, a renewed determination, and most importantly, renewed confidence that a better day will come.

(that better day will be in about 4 years)

This was a great rah-rah speech. It lacked substance, it lacked details. Which is not surprising, if he provided details, the majority of intelligent people in this country would realize his plan will not work. What is important now is to save your money, pay off your debt and spend wisely. Will that build the economy? No. But at some point , say next year, when your own personal finances are stable, then the country will be more stable.

Meanwhile, just ignore the speeches, they mean nothing. DC is collapsing on itself, don't let them take you down also. Switch the channel, watch cartoons instead of the news. That is the only way to be optimistic at this point.

The president continues his talk show circuit appearing on 60 minutes last night,here is the transcript The good news he did not talk about bowling or insult any minority groups. Here is a section of it with my comments in parenthesis:

Were you surprised by the intensity of the reaction, and the hostility from the AIG bonus debacle?" 60 Minutes correspondent Steve Kroft asked.

(why would he be surprised, he is the president, he should know the sentiment of the population)

"I wasn't surprised by it. Our team wasn't surprised by it. The one thing that I've tried to emphasize, though, throughout this week, and will continue to try to emphasize during the course of the next several months as we dig ourselves out of this economic hole that we're in, we can't govern outta anger. We've got to try to make good decisions based on the facts in order to put people back to work, to get credit flowing again. And I'm not gonna be distracted by what's happening day to day. I've gotta stay focused on making sure that we're getting this economy moving again," President Obama replied.

(apparently we can not govern at all. this is code language for you can not be mad at someone I appointed. We got to focus on the issue, never mind the people that are hindering our progress)

The president ordered Treasury Secretary Timothy Geithner to use every legal means to recover the bonus money from AIG. If it is not repaid, it will be deducted from the company's next bailout payment. The House decided to extract its own revenge by passing a bill that would impose a tax of up to 90 percent on the AIG bonuses and on the bonuses of anyone making more than $250,000 a year who works for a financial institution receiving more than $5 billion in bailout funds.

"I mean you're a constitutional law professor," Kroft remarked. "You think this bill's constitutional?"

( in my opinion it is a clear violation of the constitution. These bonuses were approved by Congress, they were in the TARP language. Are we just going to tax companies now if they don't do what we want? Sounds socialist to me. IF you want complete control, just buy AIG outright.)

"Well, I think that as a general proposition, you don't wanna be passing laws that are just targeting a handful of individuals. You wanna pass laws that have some broad applicability. And as a general proposition, I think you certainly don't wanna use the tax code to punish people," the president replied. "I think that you've got an pretty egregious situation here that people are understandably upset about. And so let's see if there are ways of doing this that are both legal, that are constitutional, that upholds our basic principles of fairness, but don't hamper us from getting the banking system back on track."

(general proposition- here Obama's law background shows. I mean really just come out and say in your opinion it is the wrong thing to do, it violates the ultimate law of the land, and then show some backbone, take leadership and tell Congress they can not do it. but that would take experience which this president does not have)

"You've got a piece of legislation that could affect tens of thousands of people. Some of these people probably had nothing to do with the financial crisis. And some of them probably deserve the bonuses that they got," Kroft said. "I mean is that fair?"

(the economy is fine except for people receiving bonus, we can spend billions on pork but if a private business spends $165 million on bonus then they are criminals. something is wrong in the stew here.)

"Well, that's why we're gonna have to take a look at this legislation carefully. Clearly, the AIG folks gettin' those bonuses didn't make sense. And one of the things that I have to do is to communicate to Wall Street that, given the current crisis that we're in, they can't expect help from taxpayers but they enjoy all the benefits that they enjoyed before the crisis happened. You get a sense that, in some institutions, that has not sunk in; that you can't go back to the old way of doing business, certainly not on the taxpayers' dime," Obama said. "Now the flip side is that Main Street has to understand, unless we get these banks moving again, then we can't get this economy to recover. And we don't wanna cut off our nose to spite our face."

(as I stated before if AIG takes government money, they might as well sell the whole company to them. Government controls them now even if it isn't the legal owner. This completely violates free market, but Obama is right. You take our money, you will do as told. )

"Your Treasury Secretary Tim Geithner has been under a lot of pressure this week. And there have been people in Congress calling for his head. …Have there been discussions in the White House about replacing him?" Kroft asked.

"No," Obama said.

(why replace him? He is the Republicans dream. His failure will increase the congressional seat gains in 2010. Anything this administration does wrong will increase the red seats. Voters do not see this as an individual issue, they see this as the Democrat party unable to deliver as promised)

President Obama's lack of knowledge and experience showed back in November. Here is an excerpt from the transcript from November 16,2008. My comments are in parenthesis of course:

Kroft: Are you in sync with Secretary Paulson in terms of how the $700 billion is being used?

(sync- or do you have a single clue of what he is doing?)

Mr. Obama: Well, look, Hank Paulson has worked tirelessly under some very difficult circumstances. We've got an unprecedented crisis, or at least something that we have not seen since the Great Depression. And I think Hank would be the first one to acknowledge that probably not everything that's been done has worked the way he had hoped it would work. But I'm less interested in looking backwards than I am in looking forwards.

(par for the course, pat the guy on the back for doing nothing. He didn't even answer the question!!, great depression, dire times, and of course looking to the future and the economic damage my policies will do, what a joke answer)

Kroft: The government has spent almost $300 billion out of the TARP program.

Mr. Obama: Right.

(you could have told him 5 trillion here and he would agree)

Kroft: Money that was set aside to help the financial industry. And nothing much has changed if you look at it. Nothing much has changed. It’s $300 billion. Why is that?

Mr. Obama: I think the part of the way to think about it is things could be worse. I mean, we could have seen a lot more bank failures over the last several months. We could have seen an even more rapid deterioration of the economy, even a bigger drop in the stock market. So part of what we have to measure against is what didn't happen and not just what has happened.

(if you got this answer from your doctor what would you do? well we have not cured the disease after billing you 40,000 but you haven't died yet either??? This is quack politics. TARP did not work, spending package did not work, admit it already.)

Having said that, there's no doubt that we have not been able yet to reset the confidence in the financial markets and in the consumer markets and among businesses that allow the economy to move forward in a strong way. And my job as president is gonna be to make sure that we restore that confidence.

(yes, now we can restore the confidence, since we scared the crap out of our citizens by telling them how bad the market is and how we would all be in soup lines tomorrow if we don't immediately pass this pork package.)

I could continue, but the interview just got worse from there. President Obama is at this time a spokesperson for our government. I see no leadership, all I see is glossed over interviews and failure to answer the difficult questions. Guess who is to blame for this? You the voter. The majority of the voters that elected a man with 2 years senator experience. A senator who failed to vote 130 times in 2 years. Perhaps if he had been present more he would have learned something.

Obama’s job approval rating has slipped from 64 percent in February to 59 percent currently, while disapproval has jumped from 17 percent to 26 percent over this period.

Pew Poll for more results

The president can say this recovery will take 2 years or 4 years, but what if in that time we are worse off than we are now? You are right Mr. President, things could be worse, and with your leadership (or lack of) they will be. Take government out of the free market and let it correct itself.

First encouraging news from the FDIC. It seems they have also learned the art of fear tactics. In order to justify increasing fees on banks they mention the possibility of failure. Which of course would mean bank deposits in any institution would not be insured by anyone. That should get the attention of those bankers. Doesn't sound the least like extortion to me.

Someone with a little more optimistic view is the Oracle of Omaha. Warren Buffet is predicting the economy in "shambles" for the rest of 2009 and then it will get better. Perhaps investors will have even learned a few things from this? My hope really is that our government will learn not to keep pouring money into three letter businesses. (see also BOA and AIG).

The new stimulus bill has created work in my home state. A new bridge in Missouri is one of the first funded projects. This and other road projects in the states are said to support 1,400 jobs. So at least until these projects are done, people will be working. But after the bridge is done and the roads are paved, then what? I never really understood the construction business anyways. You are basically working and the more you work, the closer you get to being finished. And once you are finished your only hope is for another project so you can keep working. It is the perplexing working yourself out of a job quandary. Which is why I work in an office.

The DOW not reacting yet as planned; closing at 6,594.44 which is down 1,686.78 since the "mandate" took office.