Saturday, January 3, 2009

The Governors Need MONEY

The Governors throughout the Country are now realizing that this "recession" is a bit deeper than they had anticipated and now realize that their State Budgets are in total disarray. They are now appealing to the Obama Administration for a Trillion Dollars more in State Aid stimulus money. Obviously the States needed this money a year ago but the Bush Administration was in denial that the Economy had a problem.

The Governors of course are looking out for their own re-election and will try to foster a plan that the Obama Administration finds palpable, but again this does not get to the foundation of the problem. The foundation of the collapsing economy is that the assets of the American Family have been decimated by the financial games that the Republican Philosophy of deregulation allowed the bankers and hedge funds and insurance companies to play. Now that their schemes have gone awry and they have been given the their money back by the Bush Administration and the FED, it still leaves the American Family in shambles. Without a viable middle class and a consumer class that can afford to consume, the economy which is a consumer based economy has no chance of recovery.

The bailout that is needed most, and the one that will strengthen the foundations of the Economy are a bailout of the American Consumer from the loan sharking activities of the Credit Card Industry, Banking Industry and Insurance Industry. Until the People are freed from the debt that enslaves them, the Government can continue to bail out banks, insurance companies and States, but that will only bail out the few, and those few cannot restart a consumer economy. Only the Consumer can restart a consumer economy and without funding their will be no available capital for the consumer to spend. It still and always will go back to the fact that a strong economy is built upon a strong and firm foundation. The Foundation must be built with living wages, benefits and reasonable credit for the majority of the People, not a bailout for the few.
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