Post: Is Obama A Good president Or No???
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05-12-2010, 05:21 PM
#1
Saucy-_-
Red Wing's For Life!!!
05-16-2010, 04:53 PM
#74
rjive
Love Big Titty Bitches
Originally posted by Pricey91
You probably know more than I do about business, it's not my strong subject. You mentioned letting the economy come out of recession naturally. Sure it would work, recession and booms are just the way the world works. The question is, would waiting cost you more in the long run? With the rate countries like China are advancing at, America could fall behind which would be devastating for your economy. You could start to pick up again, and then suddenly be miles behind. This would drop you right back into that recession.
You also mention that Obama has spent money on things that have nothing to do with economic recovery. Every time someone spends money it's helping things along. It's making these companies more "cash rich" so they don't have to go and borrow ridiculous amounts of money from the banks at silly rates. As a knock on effect the banks will have to start too start being a bit looser with who the give loans too. They make there money off loans and if the companies who can guarantee a return don't need loans, they'll have to loan money to other to make a profit.
I'll say it again, I'm by no means an expert when it comes to business. My C grade at GCSE business isn't going to get me too far
You also mention that Obama has spent money on things that have nothing to do with economic recovery. Every time someone spends money it's helping things along. It's making these companies more "cash rich" so they don't have to go and borrow ridiculous amounts of money from the banks at silly rates. As a knock on effect the banks will have to start too start being a bit looser with who the give loans too. They make there money off loans and if the companies who can guarantee a return don't need loans, they'll have to loan money to other to make a profit.
I'll say it again, I'm by no means an expert when it comes to business. My C grade at GCSE business isn't going to get me too far
I love that you're thinking about this. I don't proclaim myself to be an expert in business either. I obviously follow the US economy, stock markets and business cycle for work. I'm well versed on those subjects.
You asked, if waiting would it cost more in the long run... Possibly. My assertion is that putting a temporary patch and not nailing the problem head on will cost more in the long run. We're not allowing the strong to prevail and weak to fall. We're extending the length the weak can go... they'll eventually fail.
In terms of loans and financial institution... Banks can borrow money from the Federal Reserve at the fed discount rate which is currently 0%. So a bank can borrow money and pay no interest to the government for those loans. That's only profitable and beneficial to one side of the equation... Now what's happening is the those banks are using the government loans (at 0%) and reinvesting those dollars in their proprietary trading desks. If the bank can borrow money from the US at 0% and turn around and buy US treasury notes at 3.5% (guaranteed return), what is their motivation to actually LOAN that money out to the public? By loaning to the consumer, the bank is taking a huge risk the consumer will default (not payback the loan) and currently those rates are only about 5% return. For additional 1.5% return they assume a ton more risk. In all reality, they're taking those dollars and buy/selling stocks taking huge amounts of risks on the money they borrow from the US government which is AMERICAN TAX PAYER. If they fail in their investments (loose money) then the government will just bail them out again.
On to spending that doesn't move along the economy:
Let's take the American auto maker, General Motors, as our example here. The US (President Obama) and Canadian government loaned GM about 64 billion dollars. The money loaned was tax payer money. The goal of the bail out was to keep the company from going under. So what happens? GM files for bankruptcy... The US government transforms it's cash loans into company stock. The US government owns 70% of the total shares of GM. Since the US government loaned GM money and last Friday... the stock has dropped 94%. The US government has lost 94% on its investment in GM SO FAR. Now obviously this MAY change. Let's look at You must login or register to view this content. of GM to see the "outlook" for GM.
Originally posted by another user
GM Summary
- GM is still Government Motors.
- The US Government converted $45.3 billion in loans to a 70% ownership position.
- The Canadian Government converted an $8.1 billion stake into 12% ownership.
- GM lost $3.4 billion in the 4th quarter of 2009.
- GM still has $15 billion in debt.
- GM has $27 billion in unfunded pension liabilities.
Until GM IPOs we will not know an approximation of taxpayer losses. Moreover, those losses do not include the pension time bomb.
With GM still losing money on top of all those issues why did GM repay TARP? The likely answer is to get out from under TARP restrictions on CEO and executive pay.
With the Obama administration crowing about the "success" of this bailout, let's go back to the beginning, to those $45 billion in loans. Had the government not made those loans (now converted to equity), GM would have gone bankrupt just as it did. GM would likely be producing cars just as it is now, taxpayers would not be out $45 billion, and GM would not be Government Motors.
The bailout was a total and complete failure.
My point in letting the natural flow of certain failures in the economy is displayed perfectly in GM. Dropping a few billion dropped in the toilet and benefiting no one...
Additionally, President Obama's "blank check" policy is also showing up in the $940 billion government option health care bill. The State Children's Health Insurance Program (SCHIP) which provides health insurance coverage to children who's family meets the "poverty level" and up to 200% of that level. This lovely piece of legislation matches, dollar for dollar, state funding and costs the American tax payer approximately 3.5 times more than if those individuals were to pay for private insurance. You must login or register to view this content. These are just two examples of legislation passed that are not in the "interest of saving the economy."
Hopefully this makes sense and people are following my posts in this thread.
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05-17-2010, 03:26 PM
#75
dapreacher23
Climbing up the ladder
Well I think universal health care would be a good thing but it takes away from the doctors profits so they wont like that. Plus you have to remember what Pres Bush did to this economy before Obama took over. The only thing I dont like about Obama is hes turning his back on Isreal which is something you cant do.
05-18-2010, 03:05 PM
#77
rjive
Love Big Titty Bitches
Originally posted by dapreacher23
Well I think universal health care would be a good thing but it takes away from the doctors profits so they wont like that. Plus you have to remember what Pres Bush did to this economy before Obama took over. The only thing I dont like about Obama is hes turning his back on Isreal which is something you cant do.
Have you not read any of my posts in this thread? lol
Universal health care doesn't take away from the doctors profits... It takes away from the American tax payer. The cost of the government option to the American tax payer is 940 billion. This is 30% more than we've spent on the Iraq war (2001-present) which I presume you're so against. So ONE BILL will cost more than 9 years of the Iraq war... don't you find that extremely troubling?
Might I recommend reading my previous posts. Here are the two you should start with.
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05-20-2010, 04:14 AM
#78
itzbigant91
League Champion
but aint it the truth?
[ame=https://www.youtube.com/watch?v=IRYAqekvj4I&feature=player_embedded]YouTube - Jack Webb Schools Obama on Democracy[/ame]
[ame=https://www.youtube.com/watch?v=IRYAqekvj4I&feature=player_embedded]YouTube - Jack Webb Schools Obama on Democracy[/ame]
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05-21-2010, 05:17 AM
#79
itzbigant91
League Champion
heres another neat one
[ame=https://www.youtube.com/watch?v=m4r6YCUtxfs]YouTube - Jack Webb Schools Barack Obama on Healthcare[/ame]
[ame=https://www.youtube.com/watch?v=m4r6YCUtxfs]YouTube - Jack Webb Schools Barack Obama on Healthcare[/ame]
05-22-2010, 03:29 AM
#82
Ashford02
Elite Clan Invite?
First of all hes a socialist. Hes a Muslim. he is back off israel. hes cutting off production off nukes and other military weapons. and he does nothing about the 35 muslim traning camps in america right now to train to blow us up. And may i say the stimulus thing he did nothing but shit with....THeres alot and exspcailly terrioist and muslims. i can go on and on once his 4 years r up hes has to be out of there:angel:
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