Things are starting to appear like the Gold Rush of the late 1800’s around here. Except instead of the pioneers heading out West, Governors from California to Maine are heading to Washington to get their stimulus monies. It is almost as if the sky has opened and it’s raining money! If it hasn’t gotten to your state yet, never fear, there is money and relief on the way! Well almost everywhere!
Some Republican states that is, are saying no. The idea of getting, what some are calling, “commitment money,” rather than what it is meant to be, relief to help with unemployment, education and supportive social services. Those who are not taking these funds see them as being long term commitments that will establish budget items that will remain long after Washington’s support is long gone. To these socially conservative men, it is better to curse the darkness now than accept some support if it’s not going to last forever.
Given that one in seven mortgages are in trouble around the country and that tax bases are dropping in revenue faster than a Pennsylvanian thermometer in December, most Governors welcome the money. South Carolina Governor, Mark Sanford, however says no. Last time I was in South Carolina, I must admit the place looked pretty good. Pretty good from the standpoint of beaches and condo’s up and down the coast. Didn’t look so good just a few miles inland where the people live that clean those condo’s, and work in those restaurants and who fix those roads live however. But hey, he’s the Governor, he gets elected just like everyone else, if the people of South Carolina support him, he will be around for awhile; no need to worry about what some nimbi pamby bunch of liberals think.
Sanford’s problem with the stimulus money, Tarp money or whatever seems to be falling out of the sky at the moment is that he doesn’t get final control over what he gets to do with it. He wants to pay down the states debt, not fund teachers and police that he won’t have the money for later. Guess he forgot that when it comes to money from Washington, later seldom ever comes! Doing what you are suppose to be doing with the money, doesn’t seem to have bothered all those at AIG, and the various other banking industries when they got their money now did it, but hey here is a man with a conscious; just no money in his budget. Hero or shortsighted? Guess we will have to wait until 2012, to find out.
Putting billions of dollars on banks balance sheets so that they could clear their books of toxic assets, underwater properties, loans they should have never made in the first place and backup money to support their own growth didn’t work out that well for the American taxpayer before, but let someone come up with a plan that might give some people some jobs and fix a bridge or two and whoa! We don’t need that money!
Add to all this, the new Obama plan to rescue our economy and one begins to feel the frustration of trying to do anything. This plan calls for private investors to get in and get a piece of the pie. Jury is still out on this one, but Wall Street initially likes the idea. I’m sure they do. For whenever someone buys or sells a stock or invests in something be it a future or a commodity, someone makes money and it all goes thru Wall Street. It appears any plan that makes them new fresh money is a good plan And if you are wondering what happed to that back tax on the profits AIG executives got, don’t hold you breath on that one seeing any kind of daylight soon.
The very people who are needed to make the new Obama plan work have every intention of making huge profits on this new plan and anything that hints of diminished returns will sink the whole plan pronto.! Oh boy! Where did you say that Gold was!