The way this is being billed to the public is false, but the unwashed are lapping it up.
They're buying equities willy-nilly, and they're buying real estate again under the premise that if they can't make the payments, Obama will...
It's funny. George Bush took advantage of the top 50% of the economic population, and Obama is taking advantage of the bottom 50%. This will lead to a lot of disappointment later in 2009.
Everyone has to figure it out and since this is America, the only way people will figure anything out is the hard way because people are too stupid to figure it out any other way. They have to get kicked in the ass with it.
Obama will create a larger boondoggle for equity markets than would have otherwise have occurred. By Obama's actions, he is effectively creating a second speculative bubble.
As of now, all the speculative bubbles have popped. Meanwhile Obama is doing what liberal Democrats who don't understand economics have tried to do before, even though it's never worked out for them.
When you hear Obama, it's push, push, push. We need the economic stimulus program now, not yesterday. I want it by February 16. I want to create new jobs in 30 days. I want to reduce the foreclosure rate in 30 days. These are the promises I'm making to the American people.
Obama knows he's got one term, and he has to produce results. But he's a young guy surrounded by a lot of young people with very little genuine economic experience. That's why they're making promises they can't keep.
So how is this boondoggle turning out? The Republicans are finally acting as they should in trying to restrain this guy and trying to keep a lot of social spending out of the stimulus program that the liberal Democrats are loading up with.
So why didn't the Republicans restrain Bush? Because they were making money then...
For the rest of this exclusive column by independent economic and political analyst Al Martin, subscribe to Al Martin Raw
* AL MARTIN is an independent economic-political analyst with 25 years of experience as a trader on NYMEX, CME, CBOT and CFTC. As a former contributor to the Presidential Council of Economic Advisors, Al Martin is considered to be a source of independent analysis for financially sophisticated and market savvy investors.
After working as a broker on Wall Street, Al Martin was involved in the so-called "Iran Contra" Affair as a fundraiser for the Bush Cabal from the covert side of government aka the US Shadow Government.
His memoir, "The Conspirators: Secrets of an Iran Contra Insider," (http://www.almartinraw.com) provides an unprecedented look at the frauds of the Bush Cabal during the Iran Contra era. His weekly column, "Behind the Scenes in the Beltway," is published on Al Martin Raw.com
Al Martin's website "Insider Intelligence" Insider Intelligence provides a long term macro-view of world markets and how they are affected by backroom realpolitik, as well as weekly market trading recommendations.