Did they have a Plan?

During the George W. Bush lame-duck session, the Obama Team was supposed to work on a plan to stimulate the economy. Rep. Pelosi announced that a stimulus bill would be ready on day 1 of the Obama Administration, but those hopes were dashed. Mid-February finally saw the passage of a stimulus bill after being misdirected by Republican Demands for tax cuts and incentives. The idea of the bill was supposed to be massive Government spending to grease the economy. What did the bill eventually look like, 43% tax cuts. Exactly which unemployed person will benefit from a tax cut when they don't have an income to tax.

The Obama Financial Team either does not have a plan or they do not know what they are planning for. The Stimulus Bill will fail to stimulate and the Financial Bill proposed by the Treasury rocked the market with its lack of specificity and goals. The investor class threw up their hands in disgust and sold off investments as quickly as they could while fleeing to Treasury Bills, Bonds, The Dollar, and GOLD.

The Obama Financial Team is stocked with world-renowned economists, is this the best plan they could produce? If it is, it is a disgrace. It would have been better to take the money and pay off every mortgage in the country, whatever banks could survive after having all their mortgages paid off would be the ones that could continue to do business with tight regulatory controls, all the rest should enter Bankruptcy and sell off their assets.

The Current Treasury Plan is a fiasco. A mixed entanglement of failed banks, private equity, and Federal backstops, what can this accomplish other than preventing any downside for the private investors who stand to make a fortune if the "bad" assets turn "good". This plan is in serious need of revamping.