Peter Schiff – Obama puts the cart before the horse (or – the IOU song)

This guy know how to put things into context. Imagine if politicians were to start using the word “IOU” instead of credit. Let’s try it with an Obama speech :

“You see, the flow of IOU:s credit is the lifeblood of our economy.  The ability to pay with an IOU get a loan is how you finance the purchase of everything from a home to a car to a college education; how stores stock their shelves, farms buy equipment, and businesses make payroll.

But IOU:s have credit has stopped flowing the way they it should.  Too many bad IOU:s loans from the housing crisis have made their way onto the books of too many banks.  With so many IOU:s much debt and so little confidence, these banks are now fearful of accepting any more IOU:s from lending out any more money to households, from to businesses, or from to each other.  When there is no one accepting IOU:s is no lending, families can’t afford to buy homes or cars.  So businesses are forced to make layoffs.  Our economy suffers even more, and IOU:s become even less attractive credit dries up even further.

That is why this administration is moving swiftly and aggressively to break this destructive cycle, restore confidence, and restore IOU acceptance re-start lending.

We will do so in several ways.  First, we are creating a new IOU lending fund that represents the largest effort ever to help  support provide auto IOU:s loans , college IOU:s loans , and small business IOU:s for loans to the consumers and entrepreneurs who keep this economy running.

Second, we have launched a housing plan that will help responsible families facing the threat of foreclosure lower their monthly payments and issue new IOU:s re-finance their mortgages.  It’s a plan that won’t help speculators or that neighbor down the street who bought a house he could never hope to afford, but it will help millions of Americans who are struggling with declining home values – Americans who will now be able to sell their IOU:s at higher rates take advantage of the lower interest rates that this plan has already helped bring about.  In fact, the average family who issues more IOU:s re-finances today can save nearly $2000 per year on their mortgage.

Third, we will act with the full force of the federal government to ensure that the major banks that Americans depend on have enough confidence and enough money to accept IOU:s lend even in more difficult times.  And when we learn that a major bank has serious problems, we will hold accountable those responsible, force the necessary adjustments, provide the support to clean up their  IOU piles balance sheets, and assure the continuity of a strong, viable institution that can serve our people and our economy.