Reaction to Obama’s Speech
The other side of the coin
While many Obama supporters are excited and hopeful that the trillions of dollars of freshly minted cash will revitalize the world – Economic “specialist” Peter Schiff feels otherwise.
Schiff thinks these measures go against a basic understanding of economics, and even though Obama said credit was the “life blood” of our economy, he feels it’s more like a “cancer.”
See the cheap home made video below (a bit blurry w/ loud sound) but you’ll get the point.
Is Schiff wrong, right, or somewhere in between?
The website WuzzaDem had this to say:
“Payroll, like rent and utilities, is the most basic of business expenses. If a company is not making enough money to meet its payroll obligations, that company isn’t fit for business. A company that borrows money to make its payroll is akin to a homeowner taking out a home equity loan to buy groceries. Both are operating/living beyond their means.
With the exception of a rare and unforeseeable emergency, which business owners are confident they can weather, there are really no legitimate reasons for any company to borrow money in order to make their payroll.
How long have we been living in this fool’s paradise? Since at least 2001, which would explain how we seemed to survive – with relatively few adverse effects – the economic downturn after the Internet bubble burst in 2000. Not only do we continue to kick this can down a dead-end street, but we are expected to be hopeful about the destination. By all means. Let’s sacrifice free-market capitalism – the economic equivalent of democracy – so we can reward failure and indulge our insatiable appetite for stuff, even if it means that our economy collapses and, subsequently, we all become wards of the state.”