It’s About the Banks, Stupid!

In previous posts, I pointed out that Obama’s mandate was to get the economy going again.  I pointed out that our economic crash was not caused by a productivity shortfall, but rather by a banking crisis caused by a bubble popping from real estate.  It was these banks, about the fail or otherwise unwilling to lend money and incur even minimal risk, that threatened our economy.  I give credit to Obama finally realizing this and coming up with these stress tests to psychologically lift some of our fears about the survival of the banks and create some new needed confidence in the economy.

Notice though that it’s not the “stimulus” or the gargantuan Obama budget that is showing this turnaround.  And in any event, this short term turnaround will be seriously jeopardized by inevitable looming inflation, caused by the runaway spending taking place in Washington.  Furthermore, this early improvement in the economy is further evidence that the Obama/Pelosi stimulus, under the guise of necessity, really is mostly a trojan horse of liberal policymaking and pork spending that is part of the new Democratic agenda.

Technorati Tags: banks, budget, democratic, Economy, financial, improvement, inflation, liberal, obama, pelosi, stimulus, stress test, trojan horse

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