The Obama plan to begin to rescue hurting homeowners seemed sound, but he has used up all confidence from investors across the country as they refused to put their money back into the financial markets yesterday.
The administration has wasted two critical opportunities to bring hope to investors, who are desperately needed to return hopes and wealth to this nation. But the economic stimulus and Secretary Geithner's fumbling performance on bank rescue have destroyed administration credibility among investors -- including me.
The flight to gold is indicative of that.
The Obama plan will provide about $1,600 per family to help keep them from losing their homes. That's a good step. But that help will be impacted when local counties are forced to raise property taxes due to state budget cuts.
People aren't buying. So sales tax collections have plummeted.
As the Federal Reserve minutes of their last meeting show, they believe the economy will continue to worsen until the end of 2009. Then the governors expect a slow recovery. Unfortunately, that is just one opinion. No one really knows how low things will go with things before recovery, and how quickly.
That's why investors see any Obama plan as shooting in the dark ... and one they are unwiling to put their money behind.
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