[PBzeer]

I started to write this long piece in response, but realized, it really comes down to one simple fact. You don't solve economic problems with politcal solutions. To this point, everything done has had the political ramifications primary, and the economic result second.

The Chrysler deal shows where the priorities lay. Rather then let Chrysler go through the normal bankruptcy process, Obama has tried to engineer a solution that benefits a political constinuency, at the expense of the secured creditors, who by law, have superior claims against the company. In complete disregard for contractual law. And the proposals for GM mirror the same approach. While it may keep his poll numbers up, the long term effect on the economy is not positive if investors can no longer rely on the contracts necessary for investment.

When you add in the "Spend now, Save later" approach they are using to implement their political agenda, with nothing more than wishful thinking about the savings, you have the very real prospect of unsustainable debt to confront. Which leads to a second simple fact. The more capital that goes to government, the less there is to invest in growth of the economy. That's a harsh reality that no one seems willing to face, or even admit to.