Veteran Financial Advisor Timothy Frisby Comments on Implications of Government Spending

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 [] .

Frisby questions the benefit of all this spending. “Virtually none of it has wound up in the hands of consumers,” according to Frisby. “There 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.”

The government’s spending priorities are misplaced, Frisby believes. Spending should focus on constructing bridges, repairing highways, and implementing transportation systems that reduce the nation’s 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 aren’t being enforced: No grand juries have been convened to investigate the criminal fraud that lies at the base of the nation’s 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 Frisby’s view, this lack of accountability is an outrage to taxpayers.

The lack of accountability resulted in America’s high unemployment rate, which stands at 9.5 percent officially – but in reality is closer to 15 percent, according to Frisby.

In Frisby’s view, the recession is not nearly over.

“Just wait until we see the next tranche of homeowners going into default on their mortgages, as their mortgage rates are adjusted higher this fall,” he writes.

“Investors who are still clinging to (false) hope, have very little time to save what they have left in their investment/retirement accounts.”

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.

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Timothy Frisby is the principal of WealthCare Consultants, a Registered Investment Advisor. Investing in market related securities involves a risk of principal loss. Prior to making any investment decision, the services of an appropriate professional should be sought as investment related recommendations are dependent upon the personal financial situation of each individual investor.

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Press Release Submitted On: July 13, 2009 at 10:58 am
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