A Decade of Enormous Deficits May Alter American Politics and Power

But the second number, buried deeper in the budget’s projections, is the one that really commands attention: By President Obama’s own optimistic projections, American deficits will not return to what are widely considered sustainable levels over the next 10 years. In fact, in 2019 and 2020 — years after Mr. Obama has left the political scene, even if he serves two terms — they start rising again sharply, to more than 5 percent of gross domestic product. His budget draws a picture of a nation that like many American homeowners simply cannot get above water.

I was really excited when President Obama was elected. I did not agree with the policies of the Bush Administration and I was eager for the change that he promised. In the year that has passed since that moment of elation, I have come to reverse my optimism if not my support.

As this article points out we appear to be heading for an era of daunting deficit spending and national debt. When I voted for Obama I was hoping that he would be able to make some decisions and throw out some of the ridiculous programs and policies that he was left with and turn the direction of the country towards a more austere and less risky path. This to safely return the wounded economy to a soft landing. Rather than make those priority decisions, however, he seems to be trying to do it all. He is acting as if he can restore the glory that was the bubble.

I don’t think we have solved our economic problems. With the help of the bailouts, the financial sector appears to have manufactured a little in-house boom but the rest of the country still waits for the doorbell to ring. If we suffer a secondary downturn in the face of these deficits I am really afraid to think of where the United States might end up.

News Analysis - A Decade of Enormous Deficits May Alter American Politics and Power - NYTimes.com

Banks Brace for Bonus Fury

Banks Brace for Bonus Fury - WSJ.com – I read these kind of headlines with a heavy heart.  America’s largest financial institutions are playing with our country.  If there was any sense of patriotism or nationalism in the hearts of Wall Street’s leaders, most of the money that is going into those bonuses would be focused, instead, on the parts of the economy that are still struggling to maintain life.  Money would be made available to the credit arms of these financial behemoths so that small business and frantic homeowners would begin to see credit flow again.

But that is not happening, is it?  The money is going to those executives that are withholding that help so that the stockholders will feel better about the economy and likewise the company itself. 

It seems obvious to me that these actions show that the companies are not interested in the health of the United States at all.  So why should the government of the United States be interested in pleasing them?  We need to get our priorities straight.  We need to help those parts of our industry that are committed to helping the United States.  Regulations should be put in place to limit outrageous compensation and directing the efforts of the financial community towards facilitating a recovering American economy.