by John Bougearel
At today’s December 3 2009 jobs forum with business leaders, Obama confessed “We don’t have enough public dollars to fill the hole of private dollars that was created as a consequence of the crisis.” Translated, the administration wasted all the public dollars saving the private sector (read banks, GSE’s and insurance companies) that caused the financial crisis and gaping black hole from which the real economy is still reeling from today and will be for years to come.
Obama added, “While I believe that government has a critical role in creating the conditions for economic growth, true economic recovery is only going to come from the private sector.”Translated, the gov’t played a critical role in creating the crisis, and to fix the crisis and create the conditions for economic growth, they propped up the insolvent big banks that are not capable of creating credit as they need to shrink their balance sheets for years to come.
So, maybe, President Obama should have chosen a different set of policies to create ‘true” conditions for economic growth.Meanwhile,
So, the forums starting point is that the Obama admin is strapped and the private sector is strapped. This forum is shaping up to be a non-starter. Critics of the jobs forum are already dismissing the initiative as a public relations effort a day ahead of the November jobs report that will reiterate the fact that the US economy’s unemployment rate remains mired in double digits.
