Is Obama Really Spending Too Much?

Considering that the TARP funds are loans and not gifts, are we losing money or making money on this “Bail Out”? Since the government bought into 35% of CITI, the stock has tripled. I would love to have billions to invest in that wouldn’t you?

Maybe I have more faith in the government then most, but putting the politics aside and any affiliation with republicans or democrats, I can say I do trust the powers that be. At the end of the day the only thing a president has after he/she is gone is their legacy. If the government is making money on TARP and rates have stayed low despite invalidated inflation concerns, I think they know something we don’t. Call it a secret stash of money, there has to be a more grandious reason why Obama feels he can spend without regard and I take solice in this. Or, maybe ignorance can be bliss. The fact is most of us can’t change the outcome so we might as well think happy thoughts :)

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It’s Your Fault

Students at Sacramento State feel that it is the home owner who is to blame for the subprime mortgage crisis. Recently, I surveyed senior’s at the local university and and asked them to pick among the following choices who should bear the shame of the subprime mortgage crisis that unravelled the credit markets across the globe.

-The Consumer; The homeowner that bought the mortgage
-The Loan Officer; The person who sold the loan
-The Bank; They wrote the guidelines and made the loan
-The Investor; Those who purchases these agressive loans and toxic assets
-The Government; They are acting now, but stood at the sidelines during the feeding frenzy

The students affirmation in our buyer beware economy upholds the essence of our country; Capitalism. When two parties agree to a contract without duress, they should be responsible for the outcome. An interesting perspective to a complicated problem.

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Would you do business with you?

What would you expect of someone who is handling the largest transaction in your life. Several hundred thousand dollars are on the line.

Would they answer your calls?
Would they know up front what can and cannot be done?
How much experience would you want them to have?
Would this person have some sort of 3rd party certifications?
What kind of company would this person work for and what protocals are in place in case something goes wrong?
Will this person be there when you have a problem down the road?

Your expectations would probably be pretty high. Get the point!

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