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The Obama Plan to Redistribute Housing | Libertarian Party

www.lp.org10/29/11

First Obama tried to redistribute wealth before he was President, by leading the charge to force banks to make loans to lower income Americans who could not afford to own homes (through the Community Reinvestment Act). …

Applying Obama's “redistribution of wealth” to school grades …

usamericanfreedom.com11/19/11

That class had insisted that Obama's socialism worked and that no one would be poor and no one would be rich, a great equalizer. The professor then said, “OK, we will have an experiment in this class on Obama's plan”. …

Obama and the liberals could perhaps have achieved both growth and redistribution, but they chose only the latter, and they will pay heavily for their error on Tuesday!

Will Obama change direction after the elections?

No He won’t!

During his election campaign Obama said:

“What people really want is fairness”.

“They want people paying their fair share of taxes”.

“They want that money allocated fairly”.

Redistribution Of Wealth

People thought it sounded good and they voted for him, but they didn’t know that he would immediately attempt redistribution of wealth, and he went for it full throttle in spite of the recession.

What the vast majority of Americans believe in however is economic growth, and they understand full well that the threat of having more and more money taken away as you get richer and richer is simply a demotivator.

The result, motivation went down, small businesses stopped hiring and unemployment went up and stayed up; and in some states it’s still getting worse.

Then Came ObamaCare

With motivation down, the Obama administration then committed another horrendous error of judgment – they rammed ObamaCare down a mostly unwilling nation’s throat.

Obamcare essentially subsidizes health insurance for low and middle-income groups and attempts to recover the cost by taxing high-earners even more, which in turn lowers motivation and causes people to hunker down instead of trying to grow their businesses.

And what makes it even worse is that low and moderate-income workers now feel no need to earn money because they can now maintain the same standard of living with even less effort.

Obama’s Response?

Seeing popularity wane both for him personally and for his policies Obama set out a stand and tried to sell the public his unwanted wares.

Expanding health care coverage was somehow going to somehow drive down costs.

Handouts to state and local governments became a stimulus package.

Climate change legislation became a “green jobs” bill, and so on.

When the voters didn’t buy his arguments his response was to tell them that, “They are confused and not thinking clearly” and that one statement will cost him dearly.

You don’t tell people that you want to vote for you that they are basically stupid if they don’t understand you, do you?

Harry Reid just said something equally stupid and it might cost him re-election in Nevada, “He saved the world economy!”.

Doesn’t he know that Oblamer is the One?!

Could Obama Have Played It Differently And Maybe Won?

Yes, he could have!

Obama could have embraced at least two policies that would have enhanced both equity and economic performance simultaneously, and some of them might well have bridged the ideological divide.

Fannie Mae and Freddie Mac.

Loan guarantees should not have been provided for Fannie and Freddie because they shifted risk from participants in real estate transactions to taxpayers, and the caused capital to flow into the industry under very favorable terms.

Creating the guarantees allowed mortgage lenders, realtors, homebuilders, developers, securities traders and others to reap enormous gains during the boom, only to later dump their losses on taxpayers during the ensuing bust.

Cutting off all federal support for Fannie and Freddie would have sent a completely different message.

It would not only have greatly enhanced equity, but would also have helped steer investment away from ever more conspicuous McMansions and into productive endeavors like building newer, more-efficient factories, all of which would have stimulated economic growth.

* “McMansion” is an originally pejorative term used to describe a large house, particularly in the United States, that is constructed using modern labor-saving techniques and materials

The Tax Code

Another area that was ripe for reform would have been the loophole-ridden tax code.

Today, the proliferation of carve-outs means that only around 40% of personal income is taxed!

The loopholes should have been removed as much as was possible and the tax base broadened, after which the Obama administration could have slashed rates, enhanced equity, and provided a huge stimulus to the economy.

Instead, the administration did exactly the opposite; it added even more loopholes and promised to raise rates!

Right now we have a situation where similarly situated families often face vastly different tax burdens depending on their ability to game the system, and it also means that investment is steered away from companies that are adept at building better products, to those with the knack for lobbying.

Will Obama Move The Goal Posts?

Obama was a member of the New Party (communist) just 13 years ago, and he was no teen.

Michelle is a Black separatist of the worst kind as her Princeton thesis shows.

Obama is on record as saying that he’d rather be a great one term President than an ineffectual two termer, so we can sadly expect him and Michelle to continue to try and force their socialist/communist on America!

World banks brace for euro collapse | GoldSilver.com

goldsilver.com12/26/11

Banks around the world are preparing for the possible collapse of the euro as fears of the European debt crisis increase.

What Will Happen if the Euro Collapses? A Few Scenarios | Global …

globalspin.blogs.time.com12/13/11

Despite the distracting political drama over the UK's outlier rejection at last week's European Union agreement on fiscal and budgetary coordination, it's now become clear that main objective of the collective effort–to ensure …

If you think that the European financial crisis resembles the American banking crisis of a couple of years ago then you’re underestimating the gravity of Europe’s problem.

The European sub-prime crisis of 2007 and 2008 was ‘solved’, although most likely only temporarily, by nationalizing bank debt, and whilst that calmed the markets, the bottom line is that bank debt was merely being transferred onto the public-sector balance sheets.

The governor of the Bank of England, Mervyn King perhaps summed it up best when he said:

“Dealing with a banking crisis was difficult enough, but at least there were public-sector balance sheets onto which the problems could be moved. Once you move into sovereign debt, there is no answer; there’s no backstop”.

The investors who leapt back into the US markets in 2009 and fueled the biggest stock-market leap since the recovery from the Wall Street Crash in the early 1930s, are now quickly disappearing and the confusion on European bourses is even worse, and we are now in a similar position to that of 2008.

The crunch that is now happening in Europe was foreseen by a great many economists for many years however, because of the difference in approach by Germany and Holland who practice high saving and low spending, and the Mediterranean countries and southern Ireland who have exactly the opposite approach.

The Mediterranean countries and the U.K. too, borrowed cheap in order to raise their standards of living, ignoring the question of whether they could afford to take on so much debt, and that was one of the main causes of the sub-prime disaster.

The Big Danger

Whereas it was possible to bail out sub-prime households, and the banks that lent to them, the International Monetary Fund doesn’t have enough cash to bail out major economies like Spain, Italy or Britain.

The sub-prime property market in the US, together with its slightly less toxic relatives represented a $2 trillion mound of debt, but the combined public and private debt of the most troubled European countries which include Greece, Portugal and Spain is closer to $9 trillion.

If Greek and other government bonds collapse, then that country’s banking system would de facto become insolvent overnight and banks throughout the euro area would be at risk because they hold so much of their neighbors’ government debt.

The Prognosis

It took Britain just a few days in September 2008 for the Government to push through the semi-nationalization of Royal Bank of Scotland and HBOS, but as politicians are now discovering, organizing a European sovereign bail-out is far, far more difficult than rescuing a bank, or banks.

The euro continues to fall and European politicians who are torn between Brussels and their electorates are emitting confusing signals which only tend to destabilize the markets even further.

The single currency might possibly survive, but only if its members were to agree to an even closer political union, and the likelihood of that happening seems as likely as the survival of the Euro.