The Ship is doomed.
This followed the Enron Worldcom pattern, lie, claim everything is doing great, and pass it on if you can. As Obama said, I would rather be one term, and give the results back to the Republicans.
Jobs are local and come from small business. They cannot buy a company, fire everyone, and send the jobs abroad. Production, service, have to stay local. The only way is going into debt, and small business has been funded on credit cards for decades.
Truth is, about one in five startups last a year, a lot less five years. Many were just a loss for tax purposes. Our whole system is not about work and business, it is about tax and credit. Credit is down, taxes as a share of returns are up, and are going farther up. When business drops by half, the rent, utitilities stay the same. Getting a tax credit for a new hire does nothing, for without profit, no tax, no use for a credit.
A $5,000 credit comes after paying at least $20,000 for a new worker, but we are losing money already. A business has to do $100,000 in business, to make $20,000, so the tax credit would be on the next $20,000 profit. If we could do that, we would not wait for a credit.
70% of the economy is the consumer, and 20+% of them are unemployed, the rest are scared and paying down debt.
It is a problem with demand.
It is a problem with over supply.
When business after business is folding up and closing, expanding is insanity.
When everyone in the life boat is dying of thirst and hunger, what is the value of a gold coin?
Basic economics, I will see to it that you eat, drink, and have a roof over your head and clothes.
I cannot educated your children, care for your health, or preserve your life. Life is a risk, and no one gets out alive. The best I can do is give you the best shot.
The only way I can do that is if you give me something in return. Economics is based on mutual survival.
What should have been done is let the market crash. All of the efforts of government only lead to a crash in slow motion. When AIG was gone, speculators jumping out of buildings, the Dow at 2,000, I would be buying.
So a lot of rich people lose their money, let them work to make more.
We The People were given their losses, and now when the banks fail, We The People pay, and all of the debt, is put on us, now about $100,000 per man woman and child. That is above our personal debt.
In the last decade the stock market has lost between 29% and 50% according to whos numbers you use. Giving your money to business has not been a good investment.
Our per capita debt is like a mortgage, that $100,000 will cost $500,000 to pay off, plus living expenses. To do that everyone has to make $100,000 a year, including children.
The ship is doomed.
Ask not what your Country can do for you, ask how you can avoid them and survive.
This is an age of gods, the earth shaker in Haiti, Hurricane in New Orleans, powers beyond the frail hand of government, when a bottle of water is the greatest value.
Time to pick a good lifeboat, see to your supplies, chose who to trust with your life.