By Po-cheng Huang
This is RIDICULOUS!!! Now the Treasury is going to get private investors together, alongside with the government to buy about 500 billion dollars worth or mortgage back securities to help the struggling banks to get the so called “bad assets” off their balance sheet. It is already clear that the U.S. is going to face something around 12 to 15 trillion dollars in deficit by 2011, and with the Fed continuing printing money, we can expect inflation heating up again, which puts even more pressure on the majority of Americans who have already been hammered hard by the recession. Under such circumstances, middle-class to low income Americans, who made up more than 60 percent of the U.S. population, gets hit hard by the weakening dollar and raising price on almost everything, such move from the government will just provide a greater force in pushing these struggling families further into declaring bankruptcy and those who are already bankrupted face bigger challenge. Speaking of the actions taken by the government to help revive the economy, those are not directly fixing the problems, the economy is not slowing down just because if the liquidity issue, but more of a consumer behavior problem. Americans are simply overspending, overborrowing, and the biggest joke of all, is that the officials are still saying that spending is what keep the economy growing, and it is important to have the banks continue to lend out money to business and people who are high risk borrowers that likely to default.
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