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America Has a Structural Problem

From Prudent Bear.

"Obama's exciting rhetoric of Hope and Change has left the majority of recently-polled Americans disillusioned and disappointed. What I see the administration failing to grasp is twofold:

1. America has a structural problem, not a cyclical business cycle problem. Though the cyclical business cycle was greatly worsened by the financial crisis, the structural problem is actually a contributing factor.

2. America has a credit demand problem, not a credit supply problem. It isn't that the banks won't lend, but rather that few can afford or qualify (on any reasonably and historically sound basis) to borrow."

Details of each are in the original article.

"Expect it to get worse until the administration finally realizes we have both a structural and demand problem facing America, not a cyclical business cycle and credit availability problem. I believe the Obama administration realizes something is wrong, but simply doesn't know what to do about it. It is doing the only thing our Washington political machine knows what to do—throw money and credit at the problem, which is precisely what got us into this in the first place."

Not studying economics and not having a background in business is what led Obama to make the decisions he made regarding the economy--politics and political history is what guides him, and he's deluded in thinking he's righting some of history's wrongs. He believes POLICY is the best policy.

Posted by Cute at 7:26 PM

Labels: economy, financial (non-tax), politics, social issues