What I meant regarding more "big government" initiatives is you can expect the President to suggest a goverment takover of the housing industry. By taking over Fannie and Freddie, banks won't be able to "compete" for what is now very low return, high risk loans. Right now banks are not itching to lend to high risk home buyers, but with a federal takeover of the 2 major high risk financiers, they will stop altogether. The government - through F&F, will offer lower interests rates to high risk lenders (in a gambit to promote the market) which will result in more people buying homes they cannot afford. Unfortunately, defaulting will then put all taxpowers on the hook (even more than they are because of the bailouts).
It won't be the printing of money this time, which devalues the dollar and increases inflation directly. This will be an increase in public / governmental debt - which still undercuts the dollar and causes inflation.Just not directly. So the end result is the same, the administration takes acts to further harm the economy while making the excuse they are trying to help.
If a doctor was treating you for an injury, didn't know what to do and continually did the wrong thing - you could sue them for malpractice. When the government does it, the people rise up. Of course, in today's world, when that happens in this country, they are mocked as "tea baggers", "cowboys", "bigots" and "extremists".
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Good Hunting!
Captain Haplo
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