I have no other way to interpret this but as Obama’s official welcome of a foreign buyout of the US…
Barack Obama, the Democratic presidential nominee, Friday called for the involvement of industrialized and emerging economies around the world in helping to resolve the US finance crisis that threatens economic collapse at home and abroad.
Any plan the US government puts forward ‘should be part of a globally coordinated effort with our partners in the G-20,’ Obama told reporters in Coral Gables, Florida.
‘This is a worldwide issue, and while the United States can and will lead in stabilizing the credit markets, we should ask other nations, who share in this crisis, to be part of the solution as well,’ he said.
The G-20 is an informal grouping that includes the world’s most industrialized economies as well as key emerging market countries such as Brazil, China, Argentina, Australia, India, Indonesia, Mexico, Saudi Arabia, South Africa, South Korea and Turkey.
Obama declared his support for the massive US government intervention being prepared in Washington to prevent the US economy from total collapse amidst millions of mortgage defaults and foreclosures.
… and, as the informercials say… “But *wait*… there’s MORE!”
Both Wall Street and Main Street face financial ruin without intervention, US President George W Bush said Friday.
But Obama also demanded that any plan help not only Wall Street but also the country’s middle class, which is the pillar of the tax structure and economy.
His comments appeared to reflect growing calls among congressional majority Democrats for such relief in exchange for supporting the White House’s proposal to buy up billions of dollars of devalued mortgage assets to unblock the credit freeze among the country’s banks.
‘For too long, this administration has been willing to hit the fast-forward button in helping distressed Wall Street firms while pressing pause when it comes to saving jobs or keeping people in their homes,’ he said.
So let me get this straight, Obama… the candidate… plants a big “US For Sale” sign on our shores, then wants the taxpayers to buy up all the bad debt. sigh…
I’m really looking for any snippet of economic logic here. But “massive” government intervention, combined with an equally sweeping buy out of bad notes on overvalued property strikes me as one heckuva foolish “cure” to the problem…
Vietnam era Navy wife, indy/conservative, and an official California escapee now residing as a red speck in the sea of Oregon blue.
What we should do is identify any of that bad debt that is owned by foreign interest and put it in a seperate holding company – then have it go bankrupt
Obama has absolutely no clue how borrowing works. The middle class will not see credit until somebody buys the debt. The world investors are already the major holder of the U.S. debt and they won’t buy new debt because they feel the debt is bad debt. The only ways to turn bad debt to good debt is increase the chance one gets paid when things go bad (guaranteeing some of it with taxpayer money) or to put more good debt into the system which isn’t going to happen because of this Catch-22.
Now that bad debt always exists until it’s absorbed. Declaring bankrupcy doesn’t make the debt go away. It just makes the lenders less wealthy and nobody wants to tick off a lender when you want money from them.
This generic helping the middle class thing isn’t going to help. Somebody is going to have to pay. If they make the lenders pay and you’ll never get them back. If they get the taxpayers to pay and it’ll be the middleclass getting their tax money back. What should happen is there should be no government relief. Housing prices will drop to the point where people will start buying again (this time with standard loans) and if this thing works, lenders will be happy to give out money. If there is still the credit cruch, housing will get so low that people will start buying houses outright.
I do believe subprime leading will just be poison to investors and most won’t even touch them. The shortage of capital will just make them far more rare.
Obama has been selling out America from day one so I’m not surprised about his latest brainstorm. I’m sure he won’t announce his plan without the teleprompter so he can sound “Presidential”.
BArry is just an effete snob who thinks Kenya is the USA.
This is the same demand that Barney Frank got in the Fannie and Freddie Mae bailout bill .. it keeps the origin of the problem intact by forcing even more bad loans in the future.
Hey, leave it to a “community organizer” to keep ACORN afloat.
“BArry is just an effete snob who thinks Kenya is the USA.” — bill-tb
…or is it that the USA is a suberb of Kenya?
Whatever, he’s just a minow with an ego the size of a whale.
I think Obama’s just a dope. I know he’s brilliant and all, but he says such dopey things. Unless he really means what he says, in which case he’s dangerous.