I have been sitting back and watching the Great Obama dance and verbally disco around the planet. His latest "Apology Tour" is now over and reality is hitting the Teleprompter President with a sharp upper cut in the budget. (and our wallets)
The New York Times is reportedly going to headline tomorrow that Obama's economic team is getting close to hitting the panic button over the recent headlines of unemployment and economic data forecasts. The Obama administration had predicted an unemployement rate much lower than had been forecasted. The recent rate of 9.4% is much worse. Both private sector and the White House are both panicking.
Austan Goolsbee, a member of President Obama's Council of Economic Advisors
Austan Goolsbee spoke on Fox News Sunday: "It is going to be a rough patch [difficult period], not just in the immediate term, but for a little bit of time [in the future]," he said. "You have to turn the economy around, and jobs and job growth tends to come after you turn the economy around."
With this dream of an economic turnaround comes news that the Federal Reserve's announced $1.2 trillion plan three months ago which was designed to push down mortgage rates and breathe life into the housing market and other big government spending programs are turning out to have the opposite effect. Rates for mortgages and U.S. Treasury debt are now climbing higher as nail biting investors worry about a resurgence of inflation. This threatens to make a terrible housing market potentially worse and keep the economy stuck in a a neutral funk. Many financial genuises' think that jump starting the economy requires higher spending. However with rising rates means that fewer Americans will be able to refinance their home loans. To top this off...some potential buyers will be shut out of the housing market by higher monthly payments they won't be able to afford. A response from Mr. Obama was delayed as his teleprompter was not set up....
