June 8, 2009

Too rich for words

This is too rich for words. Apparently Sarah Palin will be on Sean Hannity tonight to deliver an"I told ya so.' You know what, she was right. John McCain was right. Joe the Plumber was right. Every conservative who railed about Obama's coming economic policies was right.

It turns out that the government interference in the economic crisis is exacerbating the problem (that is, making it worse, for those of you in Rio Linda).

From AP News;

NEW YORK (AP) - The Federal Reserve announced a $1.2 trillion plan three months ago designed to push down mortgage rates and breathe life into the housing market.
But this and other big government spending programs are turning out to have the opposite effect. Rates for mortgages and U.S. Treasury debt are now marching higher as nervous bond investors fret about a resurgence of inflation.

That's the Catch-22 threatening to make an awful housing market potentially worse and keep the economy stuck in a funk. Kick-starting the economy requires higher spending, but rising rates mean fewer Americans will be able to refinance their home loans. And some potential buyers will be shut out of the market by higher monthly payments they won't be able to afford.

One explanation is that bond investors anticipate a greater supply of government debt being sold to fund federal spending. Investors are also increasingly fearful that the trillions of dollars the government will need to borrow in the coming years to finance the various stimulus programs will lead to a new bout of inflation.


The White House estimates that the government will rack up an unprecedented $1.8 trillion budget deficit this year - more than four times last year's all-time high.

Sarah Palin deserves her 'I told ya so.' So does everyone who attended a Tea Party, or pointed out the dangers of where America was going to head, or now, is headed.

The problem is 'I told ya so.' isn't going to solve the problem unless someone who is manning the economic levers, hears it, understands and reacts accordingly. I don't think that's gonna happen. And when it doesn't, once again, sadly, there will be an 'I told ya so' moment.

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