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Chairman Bernanke, We Don't Believe It Is Over

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There is a reason that the American people are losing ObamaHope. The Chairman of the Federal Reserve told the world that “the worst recession since the 1930’s is probably over,” and blamed the continued problems on the rise of unemployment. Certainly he is right about the escalation of those that are jobless, but the reality cuts much deeper than that into the everyday lives of normal people.

For the Average Joe/Josephina the situation is pretty bleak. He/She sees that the TARP money bailed out the big Wall Street guys, but no one is bailing him/her out. The Wall Street executives took their bonuses and ran. Treasury Secretary Tim Geithner is still there cajoling his buddies for the President. Others from the Administration have been proverbially thrown under the bus, but not Geithner.

The health care insurance reform debate is confusing. There is a threat of a pandemic. All those Congress people are acting out in public. Why can’t they just get along? It’s almost impossible to get the facts on the news other maybe that Rachel person, but you’ve got to search for her on cable. All those other television reporters are just making him/her more nervous because they scream too!

The banks are not lending to small businesses and/or consumers. And if they are lending their interest rates are ratcheted toward 30 percent. It is not business as usual for anyone. Refinancing your home is becoming increasing more difficult, and trading up impossible if you are not an investor. The really bad news according to an economist pal is that the second shoe may drop in the real estate markets. All those adjustable rate mortgages (ARMS) are getting ready for a leap into the stratosphere, and home equity lines of credit are being called. Arianna Huffington is so right when she contends that, “Obama's rhetoric has not been matched by reality.”

Complicating this is the return of TARP monies from many smaller banks leaving their balance sheets meager and unable to lend to consumers and small businesses according to New York Times columnist, Gretchen Morgenson as interviewed today. While the big four banks hold over 39 percent of all FDIC deposits: Citigroup, JPMorgan Chase, Bank of America and Wells Fargo having grown 7 percent since the beginning of the financial crisis.

And one wonders why the polls are plummeting for the President.

 

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