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The deed is done. There is some stimulus--and a lot of pork that essentially will go to waste. Don't look for a rescue just yet. The basic systemic and structural problems still remain. Until these are addressed and cured, Americans and world citizens alike will remain skeptical. Obama is not alone in shouldering blame, Congress arguably deserves even more, since their responsibility is to initiate legislation. There will be some jobs created, but what about the rivers of credit that our modern economy thirsts for and needs so badly? Unlike a desert mirage that fools a thirsty man's eyes, this package fools no one. For it is indeed a mirage.

Consider for a moment:

What happened to all the "Toxic assets?"
They are still there, hundreds of billions worth, contaminating balance sheets.

Mr Geithner promises to stress test the remaining big banks.
How can he when no one knows what their toxic assets are worth?

How do you handle a nervous public and investors?
By getting to the roots of the problem and fixing them. This package not only does not do that. It is a mere Band Aid where major surgery and a long convalescence are needed.

We should all pay more attention to Paul Krugman , who knows a thing or two about balance sheets, private and public.

If your hotel is on fire, you can go your own way if you want. But your odds are better if you follow the guy who knows the way out. It just might be, or at least include, balance sheets.

If this is so, and there is every reason to think so, how do we fix them? Cash infusions of course. But if that is all we do, we invite more of the same. See Three Page Solution. What is most necessary is a control system that governs banker's behaviors. If we fail to find an effective one, the European Union, for one will have a leg up on us. Think about it.


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