I have taken a little time off due to the recent passing of my father and all of the issues of dealing with his affairs. It has changed my prospective a bit. Today the media seems to be more concerned about what the Obama family is doing, the John & Katie divorce and of all things Perez Hilton getting smacked. Obama’s family should not be in the news, John & Kate have some serious personal issues that should stay personal and my god, why would anyone listen to what Mr. Hilton has to say. Just my opinion, it is about time he got what he deserved.
With that said it is time to look at the real issue and that it the real issue here is the economy. Currently the Fed action is to sell treasury bonds that will put a huge burden on the next administration and every tax payer. In a nut shell the Fed is now living off its credit cards. This huge debt will have to be repaid and much of it within seven years. How is that going to happen? There are several possibilities but many of us do not understand them. Here are a few possibilities to consider;
Currently we are living in the lowest tax rate in history and we pay the most taxes. The reason is because we have lost the ability to write off everything but home mortgage. In the current environment maybe all levels of Government should consider giving back in ways that do not burden us with huge debt. We need to open our eyes and look at the current actions of the Fed’s and relies that we are going in a tax and spend direction.
If you think about the 401K accounts and how they will disperse it should make you upset. Today most of us, including myself, have or currently still do put money into a 401K thinking that they are helping themselves in the future. This could not be future from the truth. Today you are deferring your taxes until a future date. That date is when you start withdrawing the funds from your 401K account. The issue here is this is when you are going to need the money the most and you will be paying what tax rate on the money withdrawn? Today’s rate, guess again, it will be tomorrow’s rate. Do you think taxes are going to be lower in the future? Taxes have out paced income nearly three times in recent years. If you think about it everyday I pay over 27 different taxes before I get out of bed. In my state of California and I am appalled at the state leaders even considering raising taxes to cover their over spending.
In times of need why are we not trying to help people to purchase cars. If the tax deduction for car financing was restored then more car would have been purchased. There is no way to tell if it would have saved GM and Chrysler but there would have been more money for them to work with. It would be much easier for us the taxpayer to deal with a small tax revenue reduction that billions in bailout money.
Several of the big banks have received bailout money. The media views them as bad for doing bad loans. The media seems to forget that Fannie Mae & Freddie Mac set the guidelines for these so called bad loans. The jig is up, the Fed’s where in on it. Why do you think they where so willing to hand out the Bailout money?
The H.A.R.P. loan program
Obama has stood before us and spoke about this HARP loan program that will help many people keep there homes. This is a modified version of the HOPE loan program that the banks refused to do. The month of May had roughly 400, 000 foreclosures and only roughly 11,000 HARP loan done. This program is hardly meeting its expectations. The reason is this Fannie Mae nor Freddie Mac have agreed to purchase these HARP loans. The banks have no where to sell these loans so again we sit and wait.
It is time for the Fed’s to give something back to the people. Bailing out these big companies Banks, Insurance Companies, Auto Companies, ECT only helps the good old boys club and not the tax payer. If Treasury Bonds continue to sell at a record pace, mortgage rates will continue to rise. The current economy is all Obama at this point and it will not be paid off in my lifetime. The burden being put on our grand children is unbelievable!