Oak Brook, IL (PressExposure) July 13, 2009 -- As the global recession persists, the U.S. government continues to spend wildly, adding to the debt burden for future generations.
Veteran financial advisor Timothy Frisby comments on the implications of all this spending in his blog at [http://www.wealthcareconsultants.net] .
Frisby questions the benefit of all this spending. âVirtually none of it has wound up in the hands of consumers,â according to Frisby. âThere have been no meaningful tax rebates, no jobs created for rebuilding of our crumbling infrastructure, no reduction in property-tax rates for properties that have suffered reduced valuations of 30 percent or more.â
The governmentâs spending priorities are misplaced, Frisby believes. Spending should focus on constructing bridges, repairing highways, and implementing transportation systems that reduce the nationâs dependency on foreign oil. Instead, the bulk of government dollars has gone to purchase private corporations and bail out bank fraudsters, according to Frisby.
Congress has bungled its constitutional responsibility to wisely manage spending, according to Frisby. Moreover, the appropriate checks and balances arenât being enforced: No grand juries have been convened to investigate the criminal fraud that lies at the base of the nationâs financial collapse, Frisby points out.
Similarly, no one has assigned accountability to the congressional members who promoted legislation that forced lenders to grant mortgages to unworthy candidates. These congressional members fed off the undue optimism of bankers who proclaimed that home values would never drop.
In Frisbyâs view, this lack of accountability is an outrage to taxpayers.
The lack of accountability resulted in Americaâs high unemployment rate, which stands at 9.5 percent officially â but in reality is closer to 15 percent, according to Frisby.
In Frisbyâs view, the recession is not nearly over.
âJust wait until we see the next tranche of homeowners going into default on their mortgages, as their mortgage rates are adjusted higher this fall,â he writes.
âInvestors who are still clinging to (false) hope, have very little time to save what they have left in their investment/retirement accounts.â
Frisby warns investors that though he expects one more rally in the stock market by the end of the year, this rally will be the last chance to get out before the crash that began in late 2007 resumes.