Economy is still shedding jobs and people are asking" Obama to fix it. Folks, there is not much Obama can do about it. Government does not have a magic stick to swing and change the world. We have borrowed for 50 years and spent and inflated prices and salaries along with it. When the pay back time arrives, it is not reasonable to expect that all will be fine. An entire generation borrowed from the future. We are doing the same. When the future arrives, we will pay it back. There is no way out of it. Let me explain. When we borrow, banks create new money. They do not lend existing money. In fact, all bank accounts are just a promise to pay you dollars. They do not really have the dollars. Here is how banks create money: ******* http://www.tradingstocks.net/html/banks_... ******* This new money makes the economy feel good. When there is more and more money (or the illusion of it since it is just borrowed money), people spend more and inflate prices and salaries. This is a ponzi scheme being run by the government and the FED since 70 years. They keep inflating the money supply faster than the GDP growth! Then they look at GDP numbers and say "Hey, we are growing!" It is now taking $6 of debt to increase GDP a paltry $1. This ratio is going to get worse! But wait, what if borrowing does not increase? What if bank credit deflates? What is going to happen then? Well, when bank credit inflation stops, deflation starts. Bank credit is deflating as seen here: ******* http://www.tradingstocks.net/html/inflat... ******* This is the cause of the crisis. Excessive debt that cannot be sustained by the real economy is the real cause of the crash and it is not over yet. To keep bank credit from deflating, government runs many programs such as cash for clunkers, 8k home buyer credit etc. All of this is to make people borrow more so that more money gets injected into the economy so that they can declare that GDP is up at the expense of future generations. Government allowed deducting mortgage interest from tax. They do not do this because they want people to own their own homes. Things like "Home owners are good citizens" etc are just smoke and mirrors to hide the real intention of inflating bank credit. Remember the Affordable Housing push? They said everyone should achieve the American dream and they allowed sub-prime. It was intentional. They needed sub-prime borrowers to step up and borrow money after they ran out of prime borrowers. Or the money supply would deflate and their banks would go bust! Here is how the government and the FED runs this ponzi scheme: ******* http://www.tradingstocks.net/html/housin... ******* This is why they removed 20% down requirement. They needed more people to borrow, bigger amounts. That is why they inflate the home prices exponentially higher because they needed borrowing to increase exponentially. Well, the music has stopped. Chairs are taken. R.I.P to those who are now standing. Unemployment is the result of deflating money supply which cannot be prevented in the current fractional reserve baking system. We created the money supply when we borrowed. It is the principal. But we promised to pay back principal + interest. Interest was supposed to be created with even more borrowing, so that we could earn it and pay back what we borrowed. Guess what: Boomers are beyond their peak borrowing years. Bank credit cannot be inflated non-stop. This is why there is not enough money for everybody to earn and pay back what they owe. Bankers got bailed out, someone else will pay it. And that is the average American who got the short stick now. Do not hope for much. prepare yourselves: http://www.tradingstocks.net/html/prepar... "