Obama and Government Financial Games

First, it was western banks and financial institutions. Now, Chinese banks are accused of taking excessive risks.

Chinese banks' surge in lending to support the government's stimulus package is leading to excessive risk taking, said the Fitch ratings agency.

The Fitch agency’s main point is the focus is on short term profits, instead of long term stability. Isn’t that what got the West in so much financial trouble? Perhaps the Obama administration should take a lesson on the subject of short term fixes. If the financial industry is beginning to recognize these signs, maybe the US government should, too, and stop borrowing to solve the credit crunch. If excessive credit got us into this mess, maybe someone should realize that even more credit is not likely to get us out.


Speaking of President Obama and financial solutions, people are getting pretty hacked off at him. Congress is mad. The average John Doe is mad. Why? Job losses in the auto industry, for one. Chrysler and GM are cutting jobs left and right. You might also consider the following two headlines from Reuters:

17 years for the US to exit GMAC
GM borrows more while preparing for bankruptcy

Increasing loans to companies that will fail? Taking on debt that may not be recoverable for decades? What, pray tell, is there to be excited about?

(…welcome to Liberal Obamaland…where special Liberal interests get LOTS of breaks…in the name of stamping out capitalism…)