President Barack Obama has lately been touting the government’s takeover of two of the Big Three automakers as an unqualified success. This is not surprising considering the large hand he had in it; nor is it surprising that his statements on the subject have been less than forthright.
Economists Richard M. Ebeling and Matthew J. Slaughter testified before the House Monetary Policy Subcommittee May 11 and agreed that spending must be cut to avert a financial catastrophe, but disagreed about the risks of failing to raise the national debt limit.
Need more proof — besides the staggering national debt — that the federal government is totally incompetent in fiscal matters? Three years after the feds took over their already failing “government-sponsored enterprises” Fannie Mae and Freddie Mac, the two mortgage companies are still bilking taxpayers in order to stay afloat — and Fannie’s rescue is now slated to become “the most expensive bailout of a single company” in history, the Associated Press reports.
The state of Alabama was already struggling with high unemployment when it was pummeled by tornadoes last week. As businesses and homes have been destroyed by the twisters, many residents in the region are struggling to recover from the devastation without their jobs.
Federal Reserve Bank Chairman Ben Bernanke told reporters at the Fed's first ever press conference April 27 that the Fed's Open Market Committee will not change existing policies that are suppressing interest rates to nearly zero and will complete purchase of $600 billion in federal government debt securities. Bernanke also predicted inflation will stay under control and the economy will grow only slowly for three more years.