Thursday, October 27, 2011

BloggeRhythms 10/27/2011

The last few days, I've been commenting on proposed reduction of debt obligations of students and home owners by the president who's unilaterally giving them breaks because he seems to believe it's his personal job to amend financial contracts for lenders.

Now, although it's probably not a good idea for him to get involved in issues he likely knows nothing about, such as how loans work, I think his actions do something else. Because what they clearly illustrate is what's so horribly wrong with his entire administration when it comes to finance, money or business.

On one hand he bombasts, belittles and bully's business folks because they won't invest, take risks, or spend any more than they must to keep their operations running profitably. He also finds fault with them because they certainly try everything they can to avoid hiring more people. And since business folks aren't cooperating with his ideas, he thinks it's simply that hard-hearted owners have something against him.

And the funny thing is, he's correct, but not for the reasons he thinks. Because what he doesn't understand is that businesses need to know what the rules are before they invest. They also need stability and assurances that after they make commitments, especially financial ones, the rug won't be pulled out from under them.

So, on the one hand we have a president who's pushing, cajoling and prodding folks to take business risks and invest their hard-earned money while on the other hand he blatantly changes repayment terms on loans from about 7.5 million people by himself.

Consequently, I doubt any sophisticated, successful business owner is going to step up and invest additional funds under conditions like that. And that's not the only issue, because the alphabet soup of agencies the president's turned loose such as the NLRB, EPA, Justice Department and a whole parade of bureaucracies are doing their damnedest to penalize, fine or shut down every operation they can.

And that's why, as far as the business side of the economy goes I doubt the president can accomplish very much, because if nothing else he's firmly established that his absence of business knowledge is too huge to fix any time soon and his financial judgement is absolutely worthless.

That's it for today folks.

Adios

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