So can the financial system be revived? Will the "Wall Street bailout" work?
Well, it turns out the the "Wall Street bailout" that McCain and Obama both supported is going to be a lot more expensive than the media originally told us. The truth is that the "bailout" is really costing taxpayers a lot more than 700 billion dollars.
So where is all of this money for the "bailout" going to come from?
Mr. and Mrs. American taxpayer.
But will Mr. and Mrs. American taxpayer even have jobs to pay for all of this?
Circuit City just announced that they are failing. DHL is closing down U.S. operations. But even more troubling is what is happening to General Motors.
Shares of General Motors plunged another 13% on Tuesday, closing below the $3 mark for the first time since 1946. There is now a very real possiblity that General Motors could go out of business.
Unless they get a bailout that is.
It seems like everyone is asking for a bailout now. Lobbyists are swarming the U.S. Treasury looking for a piece of the big "bailout pie". It is not just Wall Street now - almost every major industry is clamoring for some bailout money.The truth is that Barack Obama (or anyone else for that matter) could not fix the U.S. economy even if he was Superman, Batman and Spiderman all rolled into one.
The chart below shows the reserves of the banks in the United States. Do you see what has happened? The reserves of Americ's banks are gone!:
This next chart shows the insane amount of money U.S. banks have had to borrow from the Federal Reserve just to stay afloat. Even with all of this extreme borrowing, 19 U.S. banking chains have already failed this year.
But this chart is slightly out of date - the federal government of the United States is now over 10 TRILLION dollars in debt.
10,000,000,000,000 dollars in debt!
How would you feel if you discovered that your parents had run up a million dollars on a credit card in your name, and now you had to make interest payments on that credit card for the rest of your life?
Well, the current generation of Americans has racked up a 10 trillion dollar credit card bill that it will be passing on to future generations.
America's children and grandchildren will be working their entire lives to pay interest on this ridiculous debt. Their labor will go into serving the owners of this debt, and there is no escape.
America has had the greatest party in the history of the world and it has fueled this party on massive amounts of debt, but there is really bad news.....
The party is ending.
The biggest debt bubble in the history of the world is beginning to burst.
Once upon a time, the United States was the biggest creditor in the world. But those days are long gone. Now America is the biggest debtor nation to ever exist on the earth.
America was the wealthiest nation in the world, but that was never enough. Americans always had to have a bigger car, a bigger house and an endless supply of "stuff". So the American government piled up debt, American companies gorged on debt, and Americans made using credit cards into a national pastime.
And if you include the future liabilities that America's government has committed to such as future Social Security and Medicare payments, then the total debt of the federal government is over 59 TRILLION dollars.
59 TRILLION dollars!
Do we find that Americans are learning their lesson?
Not at all.
Instead Americans are squeezing everything they possibly can out of their credit cards. Total credit card debt in America is now over 800 billion dollars, and it is increasing at a rate which is four times faster than earlier this decade.
Instead of showing restraint, Americans have jammed the accelerator to the floor.
Prices are increasing dramatically while wages are not. Jobs are being outsourced and factories are being closed. America's largest banks and financial institutions are teetering on the brink of failure. Homes are being foreclosed at record rates. Personal bankruptcies recently hit an all time high.
So what is the answer that Obama is giving to America?
Spending even more money and getting us into even more debt.
It is time to face the truth.
The American Dream has gone "bye bye" and Obama is not going to bring it back.