Monday, January 21, 2008

Let's use the US Government Credit Card.

The latest topic swirling around is the Bush proposal to put checks in the mailboxes of every taxpayer to stimulate the economy. That is equivalent of using the government HELOC to once again bail the republic out of the latest crisis. The government is 10 TRILLION dollars in debt now. That is what we all owe as of now. The recession could move into a depression and that is what Washington and Wall St are trying to avoid at all cost.

The check in every mailbox reminds me of Hebert Hoover who won election in 1928 on the slogan, "a chicken in every pot and a car in every garage." Seven months after his inauguration the 1929 crash occurred and the country went into the great depression. Any parallels? Winston Churchill said, " A nation that forgets it's past is doomed to repeat it." I am an optimist by nature but the fiscal meltdown that is occurring throughout the economy coupled with our mind numbing future obligations to Medicare and Social Security make me wonder when the party will end and the bill finally come due. Sober up and watch this video from 60 mins: