On Friday June 1, addressing a national TV audience on an awful jobs report President Obama rattled on with his “every one and every thing” is to blame for these numbers, Europe, Congress, “W,” Corporate America, etc.—–that is, “every one and every thing” , but himself and a failing economic direction. One of his pearls of wisdom was to encourage and recommend that homeowners should take advantage of the “low” interest rate environment and refinance their homes to free up more money to spend to get this economy going again.
What was that again?
With American households in deep water—-here’s a plan—–go borrow your way out of this mess. Obama’s selling point – and this is with no exaggeration – “it could free up thousands of dollars”
I am a financial analyst and advisor and I relate this to my many interviews with individuals and corporations.
“Well, Mr. and Mrs. Client, I have reviewed your current financial situation, your debts, income, assets, wishes to educate your children, have an occasional vacation and someday when your time horizon approaches, you would like to retire.
“I have just the thing for you—-an application for a high limit credit card, let’s go borrow some money.”
Huh? Did I hear right?
And he did “run that by me again.”
Yes, Friday June 8, addressing a national TV audience under the auspices of the appearance being a press conference to talk about the European Financial Crisis of the day, Spain, President Obama was reading the same script about our citizens’ opportunity to borrow their way to prosperity. No Sale.
Those of you know that extending your obligations off into that grey area we call the future, without a more secure footing than we have today, is sheer folly.
What is this president thinking?
He is in way over his head with complex issues and should not be making cavalier comments and recommendations like this one (among many others). The American people are going to have to fix this problem in November.