- Jan 14, 2009
The market is seeing a good gain thus far today after news spread of the Obama administration's plan to spend $1 trillion on buying bad bank assets. The market is reacting well because obviously it will put a lot of the banks off the hook for the toxic asset problem, at least temporarily. The alarming, yet overlooked, problem though is the question of where is this money going to come from? We are getting to the point where trillions seem ordinary in spending, when in reality we have no money to actually spend. 1 trillion= 1,000 billion= 1,000,000 million, does anyone remember that? This plan is only bound to add more to inflation and when consumer demand goes up we will really suffer because of all of this spending.