'I Won:' President Obama Works to Be Bipartisan But Shows There Are Clear Limits

As crafted, whether $775 billion or $1.2 trillion, the Obama Stimulus Plan fails to adequately address two primary causes of our current financial crisis: (1) millions of homeowners whose home mortgages exceed the value of their homes (the “Negative Home Equity Problem”) and (2) our dependency on foreign oil that resulted in gas prices exceeding $4.00 per gallon (more than 200% higher than norm) (“Foreign Oil Dependence”).

The 2008 simultaneous combination of a national Negative Home Equity Problem and our Foreign Oil Dependence was clearly primary cause of our great recession.

Negative Home Equity Problem

Until millions of homeowners awake in the morning with the burden of their Negative Home Equity Problem eliminated, they will not resume normal spending patterns. The $500 - $1,000 per year per household tax savings, though totaling $1.4 billion to $1.5 billion, will have little effect in stimulating the economy. Most individual tax cuts will go to reduce consumer debt, merely purchase “existing inventory” sold at deep discounts, and fail to create new permanent jobs in the United States.

Until homeowners resume normal spending patterns, most businesses will continue to be in a “contraction mode”. Any business tax incentives must be combined with a plan to eliminate the Negative Home Equity Problem. Without it, Consumers will not spend and businesses will not seek to take advantage of the Obama Stimulus Plan’s business tax incentives.

Few businesses will venture out to make new investments to create new jobs in the United States.

The Obama Stimulus Plan projects $100 billion to $150 billion in business tax cuts. I believe it is highly unlikely such tax cuts will be actually realized, unless the Negative Home Equity Problem is eliminated first.

I applaud the recent developments Congress has made towards developing a Homestead Owner Chapter 13 Bankruptcy Loan Modification solution to the Negative Home Equity Problem. However, this solution will have ramifications not anticipated by existing home mortgage investors. As a part of developing the Homestead Owner Chapter 13 Bankruptcy Loan Modification solution, Congress should quantify what those unanticipated ramifications will be and create a parallel plan to assure that such ramifications do not have a substantial negative impact of the home mortgage market in the future (“Negative Home Mortgage Market Ramifications”).

I would suggest Congress quantify the direct and indirect costs of the Negative Home Mortgage Market Ramifications caused by the Homestead Owner Chapter 13 Bankruptcy Loan Modification solution before Congress approves $300 billion or more in broad based (not targeted) individual and business tax incentives. If you fail to refinance us out of this problem now, before Congress increases deficit spending and causing interest rates to rise, the Negative Home Equity Problem and our economy will only get worse.

In summary, Congress should pass a comprehensive fully funded Negative Home Equity Problem solution before approving $300 billion or more tax cuts contemplated in the Obama Stimulus Plan. By assisting the Federal Reserve in implementing its monetary policy to drive down home mortgage rates, Congress would minimize such Negative Home Mortgage Market Ramifications. Conforming Home Loan Mortgage rates should be driven down to below 3.00%. Congress could simply allow FHA/Fannie/Freddie to refinance existing mortgages at the Treasury’s cost of funds (below 2.50% for a 10 year term; below 3.00% for a 30 year term).

PLEASE DO NO MISS THIS OPPORTUNITY TO REFINANCE US OUT OF THIS PROBLEM AT HISTORICALLY LOW INSTEREST RATES!

Foreign Oil Dependence

If we fail to make a substantial investment now towards a plan to eliminate our Foreign Oil Dependence, when will we ever be able to do it in the future? Before approving $350 billion to $400 for board-based infrastructure projects, Congress should pass legislation to fund all currently planned (but stalled) alternative energy projects across the country that will reduce our use of oil.

In Indiana alone, over the next 24 months, we could easily start planning and constructing over $10 billion in new Alternative Energy Projects (examples: bio-fuel production plants, wind energy farms and coal gasification plants), if the Federal government provided additional economy development incentives and credit enhancement. Many alternative energy projects started in the last 2 years have stalled with the recent drop in oil prices and the loss of financing sources due to the crisis. There is no better time to restart those projects with additional Federal subsidizing then now.

Alternative Energy Projects are extremely capital intensive, create immediate construction and service jobs, and offer a direct and indirect pay-back stream through the sale of energy and reduction of our Foreign Oil Dependence.

In summary, before Congress approves a $350 billion to $400 billion broad based infrastructure spending program, all currently-planned (but stalled) alternative energy projects across the nation should be adequately funded, moving us forward to eliminate our Foreign Oil Dependence.

PLEASE TO NOT MISS THIS OPPORTUNITY TO FUND HUNDREDS OF BILLIONS OF DOLLARS OF ALTERNATIVE ENERY PROJECTS THAT HAVE RECENTLY BEEN SHELVED. SUCH FINANCING CAN BE FUNDED AT HISTORICAL LOW INTEREST RATES IF THE FEDERAL GOVERNMENT GUARANTIES THE DEBT USED TO FINANCE THESE PROJECTS.

Making trillion dollar decisions can never be easy. You all are truly in our thoughts and prayers every day. And trying to “keep things simple” given the magnitude of this pending great regression is implausible, at best.

However, I ask you all to focus on the two critical and primary causes of our current financial crisis, (1) the Negative Home Equity Problem and (2) our Foreign Oil Dependence. Until you send a clear message that you have a solution for both now, the economy will continue to fall precipitously and we will never be able to afford or have confidence to invest in alternative energy in the future. Clearly, we can not afford to fund over $1.5 trillion (TARP: $700 billion; Obama Stimulus Plan: $775+ billion) in our attempts to fix the outcomes of the financial crisis, and fail to fix the primary causes of the financial crises.

After all the devastation done to America by the Republicans by their policies and their actions they are still mouthing the same spectacularly failed ideas! Boehner is saying the same stupid stuff like a trained Myna bird. We have tried all those Republican stuff that almost got all of killed! We know Republicans have ruined America. But Boehner can’t help but to try selling the same snake oil to us Americans!

It seems like the Republican posters here have been in a coma the last 8 years. They're acting as if they have better ideas. Once again, from 1995-2007 the Republicans controlled congress. From 2001-2009, they controlled the whitehouse.

Question: How do you reconcile the state of the union with your policies now?

Also, for those with perfect foresight, we're supposed to believe what you predict will happen when after you made your own messiah out of Bush and thought everything was going to be pefect?

I understand the desire for some "BITTER" Americans to be skeptical about Mr. President;in that, every decision that is made will be criticized. I just wish these same people were critical of their educational resources as they fail to spell words properly. They should revisit some basic grammar school teachings and place RESPECT next to SPELLING in their list of priorities.

Over the long term, the contraceptive assistance would help the economy significantly because it would be servicing people the most unable to financially provide for children. The social services system is bursting at the seams from children who can't be afforded. Sorry for my rather impolitic input.

"Look, we are all political animals here,..."-Obama
Hey, so he is a political animal-politician not the new-day-new-deal breath of fresh air guy all of the bleating sheep thought they where voting for. What a surprise. At least Obama proved one thing...the best thing to do when running for office is to make sure the voters no very little about your actual ideas. I hope you are happy America you have voted in the most anti-American President ever to hold office. Hey, if Senate seats in Chicago are bought and sold how much did Obama pay for his? This guy has sold his sole to the devil long ago. Thank you America. We now have a political figure that will deserve far more abuse than George Bush. The best part is this guy can't stay out of the lime light and loves to hear himself talk. Mark my words, this POTUS will be the un-doing of the Democratic party and all the old-school scum it represents.

This guy's been in office for less than a week, and he's already focusing on the next election.

Harry: well said!!!

Check out Britian's Telegraph newspaper online, and read their article about this whole thing. Too funny - the Telegraph's take on things. They might love Obama, but at least not to the point of wearing blinders.

What are these old people doing in congress, if they can not grow up and get things done, we should just vote them out and bring in younger people who will get things done.

Actually the meeting quotes were linked from the GOP..not Obama's group. That's obvious because the "I won" quote was first posted by JMart. We KNOW he didn't get it from Obama's team because the POTUS already gave him the "calm down son" slapdown for trying to roll him when he stopped by the press room..On a bigger issue: Can we please just get rid of the ENTIRE House of Representatives?..That body is Exhibit A when it comes to the manifestation of "childish things". Why is Boehner giving a radio address about anything?? Boehner's the voice of the GOP??..Why is Pelosi talking about "bi partisan" when she can't comprehend what it really means??

"I won". Is that the best retort the President can come up with when faced with a prepared opposition?

He's going to have to do better than resort to junior high taunting tactics, and bring a real conversation to the table.

First of all, you cannot give tax cuts to the poor (who do not pay taxes.) You can give them welfare. Soon more and more Americans will demand welfare benefits from the government. Soon over 50% of the population will be getting hand outs. This is how America will implode. When few are forced to work to pay many. In politics, it is also called "tyranny of the majority".

Secondly, this is Rule 13 of Saul Alinksy's Rules for Radicals. President Obama knows it well:

"Pick the target, freeze it, personalize it, and polarize it."

"We need to do something about the economy" - Obama

Ya get your greasy hands of it.
If you want the economy to be revived,
eliminate all federal,state held jobs etc. which are but leeches,
reduce taxes to 1% and keep your nose from getting into everything of people's life.

We dont need you Father Obama!

"I WON", I'm loving it! Cantor, Boehner, and the rest of the republican party really have their hands full. America is really getting a taste of what a real president does: Tell it to your face! Just think if Cantor had to hear that on TV, the next day. I'd feel sorry for the guy. But you have to appreciate someone who'd tell you what their thinking to your face.

The economy was improving greatly under President Bush and the Republican-controlled Congress...unemployment was for all practical purposes at 0 per cent...and then Frank/CRE combined with Pelosi-Reid the last two years reared their (literally) ugly heads. That same hand-out mentality...never has worked, isn't working and never will work. There is no substitution for people being gainfully employed on their own and being able to buy what they can AFFORD and genuinely have the credit for.

As for Sensenbrenner, what he did was jerky, and unlike the Demobots I'm not going to blindly suck up to everybody that belongs to the party I tend to support.

tax cuts for poor people puts money right back into the economy, immediately. These people live on the edge and every dollar they get is spent at the grocery store.

Robert Stinnet__The money you are complaining about when through budget approval. The money designated in this package is specific for Economic Stimulus. Family Planning funding needs to go through regular budget sessions. Approving this as part of an Economic Stimulus Package is not just a joke, it's a betrayal of the better govt promise the President gave.

OK...I had a problem with Bailing out the Banks, but understood the rationale of Why. I had a problem with Bailing out the Auto Industry, and still disagree with this as it struck me as a ploy to bail out the Union, not the Industry (haven't seen any other industry such as Telecom assisted with Bailout money to avoid layoffs!). Now they want to sneak in a clause to give 'Bailout' to family planning??? HOW does that stimulate the economy??? This isn't bailout money anymore to help the economy, this is a blank check to support pork projects. I voted for the president, but this is looking disappointing.

When the day comes when *everyone* stops having the urge for sex, maybe then we can have a discussion on eliminating government assistance with *contraceptives*. Did you know those things let you have your cake and not have to worry 'bout a bouncing little baby 9 months (or less) later?

Pregnancy is the result of unprotected sexual activity, not some divine intervention. When something goes really wrong, then we are in an abortion discussion. Contraceptives , heh, "TRUMP" that

C'mon eveyone! Tell me how we are all going top stop wanting to do it! And "bible study" AINT the way.....

Another idea: How about we do a DNA fingerprint of every aborted fetus, locate the Father of the child and jail him? It takes two to tango and we ought to make them more responsible than the female, no matter the circumstancees of the moment.