Category Archives: savings

Help Me Out Here On Obama’s Second Press Conference?

Clearly everything Geithner’s bailout programs are doing is intended to “fix the credit markets,” which is to increase lending/borrowing to businesses and consumers. Geithner/Obama’s programs are to increase mortgage lending, and consumer and small business borrowing. There are special programs to increase lending for new cars, and to securitize credit card receivables so that consumers can spend on new cars and every kind of credit card borrowing.

At the same time these programs create  trillions of government debt, truly massive debt, but that is OK because the purpose is to make credit more available. Doesn’t that boil down to getting businesses, consumers and the government deeper into debt?

Help me out here. Isn’t excessive borrowing and excessive debt what got us into this mess?

Is increasing consumer and business debt the way to cure the problem of excessive consumer, business and government borrowing? What am I missing?

Here is text from Obama’s second press conference, cut and pasted exactly, courtesy of Associated Press:

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.” BH Obama March 24, 2009.

Well, clearly all the government programs contradict the words of our President about “moving from an era of borrow and spend…”

Let us examine the last part where Obama says: “to one where we save and invest.”

Exactly how does Obama stimulate saving and investing? The interest that savers can earn from the banks or from investing in Treasury securities range from one quarter of one percent to two percent, the lowest in my lifetime. How does Obama encourage people to save when he artificially forces the return on savings down to nothing?  I feel like I am being punished for saving.

My interest income has been destroyed.

But Obama wants to raise my taxes on income from savings and investments. How is increasing taxes on income, and on capital gains from savings and investing going to increase savings and investing?

Then the hypocrite will take the tax fruits from punishing savings and investing, and give it to people who borrowed and spent. Isn’t that rewarding “borrow and spend” while punishing, disincentivizing “where we save and invest?”

Help me out here. How are Obama’s lying, false words “by moving from an era of borrow and spend to one where we save and invest” not an even meaner, more cruel  joke than “Change you can believe in?”

We must decide whether Obama truly has no idea about what he is reading from the teleprompter and is merely another brainless idiot President, even dumber than the one he replaced, or whether he is bipolar and his evil side wants to destroy America. Because that is exactly what his policies are doing.

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Obama Want Us To Save Less, especially for Retirement

Obama was on TV today Oct. 13, 2008 saying he wants us to take $10,000 out of our 401(k) and tax deferred retirement savings tax free to help stimulate the economy.

Simultaneously, he wants stimulus to credit card, car loan and business loan companies to lend us more money.

Duh! Isn’t too much debt and lack of savings what got us into this mess?

Barry, the reason there are tax penalties on early withdrawals from 401(k) and other retirement plans are twofold:

(1)  We are supposed to accumulate our savings long term so the money is there when we retire.The tax penalty on early withdrawal is to prevent people from doing stupid things like stealing from their retirement for current pleasures. There is a concept called Deferred Gratification, but Barry wouldn’t know about it because his entire life has consisted of charities and taxpayers fulfilling his every need everey day of his life. Barry took a four month trip around the world after his sophomore year in college without ever having worked a day in his life. Barry went to Indonesia, Pakistan and Africa with his Two Pakistani Muslim friends who today control his Presidential campaign finance. Where did the money come from for his “Round the Muslim World” sophmore trip, and where does the money actually come from for his current campaign?

(2) All retirement accounts are rstricted to investments which help build the economy. Retirement accounts are either banking deposits, stocks and other instruments which supply capital to build the capitalistic economy. In case you have not noticed Barry, the government is taking a trillion dollars of taxpayer money to increase the capitalization of the same companies that will lose capital when people withdraw $10,000 from their retirement accounts.

So with one hand Barry will take money out of retirement capital investments, while the other hand uses tax payer dollars to inject capital into the companies from which the withdrawals come/

This is economic insanity. But if Barry has never been part of the economy, how can we expect him to know anything? I gues I am unfair to Barry for exposing his insane ignorance of the economy. More here