Economics 101: Obama earns some points

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  1. This is one area where Hillary is making me nuts. A blanket freeze is also dumb because there are plenty of people with ARMs who can pay them when they adjust. There is no reason to protect these folks from their own decisions.

  2. A flat-out pander. This says a lot of things (none of them good) about a constituency that is willing to buy her brand of snake oil.
    The current benchmark for extreme economic recklessness is Smoot-Hawley. If given an opportunity, Hillary would retire this paradigm.

  3. Polimom,
    Although Obama eventually arrives at the right answer “…if we have such a freeze, mortgage interest rates will go up across the board…” he gets there via a populist economic argument that ignores core fundamentals.
    If the credit providers (banks) don’t see their investments (credit) being both protected and provided with a reasonable ROI, they will not make credit available. They will place their cash in investments/instruments with lower risks and higher ROIs. Although he won’t admit it, I do hope that Obama does, in fact, know that we need to protect the banks. Otherwise, can you say “liquidity crisis?”
    Can’t let the folks know that those evil capitalists are both necessary and have rights, too.

  4. I agree with your assessment of how he presented this, belloscm.
    While I’m inclined to ascribe a fair amount of bs (to both of them) due to the primary, but the lenders and the borrowers have a symbiotic relationship regardless of one’s starting point with the logic. He did, in fact, hit precisely on a very real outcome of what Hillary is proposing.

  5. “…He did, in fact, hit precisely on a very real outcome of what Hillary is proposing.”
    Yes, he did. I only wish that he hadn’t passed on the opportunity to remain the audience of this fundamental, ” symbiotic relationship.”
    At the risk of going OT, he also had a chance to savage Hill over her Iraq “excuse.” That’s the real “fairy tale” in this campaign.

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