Obama trying to reinflate the bubble and it isn't going to work....

[Postman]

http://robertreich.blogspot.com/

Why We're Not at the Beginning of the End, and Probably Not Even At the End of the Beginning

snip: Are we at the beginning of the end? Mortgage interests are now so low (the average rate on 30-year fixed mortgages was 4.87 percent Thursday, slightly higher than the 4.78 percent last week, but still the lowest level since 1971) that President Obama has begun urging Americans to refinance their homes so they can save money and start spending again.

Cheap money, you may remember, got us into this mess.

[Mike 03]

1. This is true. But in order for our plan to work, we have to forget this and pretend

it's not true.

On Edit:

We are not sure it won't work. That is the point. We are trying to make it work, in spite of the fact that many people think it can't.

[FrenchieCat]

2. It wasn't cheap money to the public that got us into this mess,

it was No money down Homes with fine print that made No money down more expensive than advertised!

[Mike 03]

3. Yes, and it was "no money down" backed by the "nothingness" that CDOs and MBSs represented.

Exactly. NT

[Postman]

4. I think you may be missing the point...

we're tapped out.

The borrowing binge to help prop up the consumer culture has come to a screeching halt because people can't afford to borrow anymore because they don't know if they'll have a job tommorrow.

And not just any job. A job that pays a living wage.