Fix the Banks First!

The fears of every true capitalist have recently been realized with the incredible misdirection of resources the federal government is employing with the stimulus package.  It is true, the country needs a stimulus to deaden the effects of the economic carnage going  on right now.  However the economy will NEVER recover without a banking system.  Its proper function should be the priority right now, not the appeasement of short term pain points in the system.  

This reflects a true problem with the "state of mind" of the Administration.  It is pedestrian.  It focuses on the surface level issue and does not deal with the root of the problem.  Yes, the Obama administration seems incapable of strategic economic thinking, choosing instead to focus on the partisan drumbeat of Nancy Pelosi and the big government crowd.   Just listen to Barney Franks on Meet The Press (3/8/09), and you can see the flaw in their thinking.  On the program, he illustrates that (paraphrase) "making a job in the public sector is a necessary contribution to the economy" when defending the spending efforts of the current stimulus plan.  

Yes.  The job contributes temporarily to the economy.   However it creates two very big problems.  1.  It consolidates job control under the government (not private enterprise) and 2. It is non-productive from an economic standpoint.  Meaning that job is not likely to create other jobs and build upon itself like an Entrepreneur starting a business would with the money.  This type of thinking is short term and pedestrian and does not "fix" anything but making us feel better for a short period of time.

America needs to take the medicine now.  Fix the banks first and forego the fulfillment of Ayn Rand's vision in Atlas Shrugged (Isnt it amazing how close this is all coming to the book?  Warren Buffett = John Gault?)