More bailouts and then some more...Peter Schiff's solution

Bailouts, Bailouts and more bailouts...this is never ending. I 've already written a bit on this topic, but I want to highlight this again, beautifully written by Peter Schiff:

Put simply, our government doesn't have enough spare cash to bailout a lemonade stand let alone a bloated and failing industry that is losing tens of billions of dollars per month. Washington can only offer funds that it has borrowed from abroad or printed. Unfortunately, the nation is in the grips of a delusion that money derived from these sources has the power to heal.
But history has clearly shown that borrowed or printed money only has the power to destroy.

The solution he proposed is correct, but too tough to implement:

Spending must be replaced with savings, and consumption with production. The service sector must shrink and manufacturing must expand to fill the void. The dollar must fall, wages in America must be brought down to a competitive level, and hopefully government spending and burdensome regulation can be reduced.
This transformation will not be fun, but it is necessary. Our standard of living must decline to reflect years of reckless consumption and the disintegration of our industrial base.
Only by swallowing this tough medicine now will our sick economy ever recover. By accepting a lower standard of living today, we will eventually be rewarded with a higher one tomorrow.

Source

Can a Black Swan 'Change' Obama?

Barack Obama gave a historic win to America, an event very hard to replicate anywhere in the world. People not just from USA , but from countries across the continents moved by his victory, his ability to reach the heights and to create hope.

Everybody knows he promised to bring 'change' for a better world with synchronizing assurance of his supporters singing with him- 'Yes, We can!'. It was such a rosy picture and I sincerely hope it stays that way.

Obama was very quick to assume responsibility and started to jump on the mess created by the 8 horrific years under Bush. Tasks to take on are unsurmountable.
The victory gave a chance for America's enemies to put him on test. Militant outfits in Iraq and Afghanistan sent out a message not much different than their previous ones; Russia wants to build a missile system near Poland; Iran was happy with his election (which might make Israel a bit nervous); un-employment reached 14 year high; Auto companies going bankrupt; and of course Wall street was not really happy with his election.

The first two initiatives Obama has taken were totally disappointing to me.

1. Stimulus package - which has not worked and never will
2. Appointment of Rahm Emanuel

So much for 'Change' and 'hope', that Rahm was appointed on chief-of-staff position?? A pro-war Zionist, Freddie Mac board member during its drive towards the cliff's edge, sitting in a position which decides what information President must get and also appoint people in key White house jobs. Aaah, Please!!

More questions arise:

• Will Obama govern by wisdom or ideology - polished version of Bush's way of governance?
  
• Can Obama's 'Change' handle a Black Swan, geo-political or financial??

A Black Swan event can land him in the same position as Bush was after 9/11. Such an event can come from geo-political means or economic means. Nobody knows. A major attack, a financial catastrophe, a preemptive strike on any nation in middle east...we never know who will test the waters in the present perception of US weaker financially.

Real change under Obama will be when he does not curtail freedom of people and start new fronts of war with same kind of warmongering as previous regime did. The trust factor can sweep many Americans towards him and it is quite dangerous.

On the economic front, If he goes on to increase taxes, it will be no better than what Hoover did before Great Depression. He has to realize that more Government involvement is the problem.

Obama is smart, has sense of judgment. But, real 'Change' will come when he does not rattle in such huge problems as he didnot during all the speeches he gave.

People are losing trust in Capitalistic system. If Obama fails to deliver, they might as well start questioning Democratic system.