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It was bound to happen sooner or later.  Ever since he revealed his blueprint for the economic recovery of the United States, packaged in the much talked about “Obama bailout plan”, President Barack Obama has lived under intense scrutiny, with the better part of the United States placing all of his actions under a collective microscope of sorts, dissecting them and examining which actions contribute to the supposed plan to bail out the United States from the economic stupor it is currently in.  It turns out that this scrutiny is also not the quiet type, since people would really rather crucify politicians publicly than praise them for their efforts on something they promised they would do, and are trying their best to do, in the face of all adversity.  While many would say, “hey, tough, but that’s what they’re paid to do”, it should still be a point of consideration that some of these politicians really are trying their best to make good on the promises that they made, and perhaps the best example of this is President Barack Obama.  In the face of all criticisms, he is still very much into doing what he promised to do: get the American economy back on track.  No small feat, no matter how you look at it, so it really is no surprise to hear that he has finally decided to hit back his detractors and have a say in the matter.

The president has finally responded to the growing criticism he has been receiving regarding the stimulus package he has been pushing for in Congress.  The president went on to say that just like all solutions, his offered solution will take some time to take effect, and n the face of all the criticism that he has been receiving from his detractors, a single one of them has yet to offer a plausible alternative to the solutions that he has offered to the nation.  The critisim has been steadily growing amidst an equally steadily growing number of job losses in the United States, primarily the result of the economic crunch that the United States is experiencing, as with most economies all over the globe.  Detractors are quick to point out that one part of the promise of the Obama administration was that unemployment would stay well below 8 percent.  A new announcement from the same administration, however, has warned the public to brace for a spike in unemployment, well beyond the 10 percent mark.  This warning has apparently caused more detractors to verbalize their disbelief of all that was promised in the Obama bailout plan.

While the intelligent thing to do would be to wait and see how it turns out, since there really isn’t anything anybody can do about it, the question remains:  when are we really going to get out of the rut that we are in right now?  And is the Obama bailout the solution to it all?  We have yet to see.

We must all now come into terms with one of the biggest inconvenient truth of this decade. The Obama Bailout plans might not work. Though the Obama bailouts do seem like the only sensible move the government at the moment, it may not be so effective. Another most inconvenient truth we have to face right now is this: the last few decades of American wealth was not real.

For those of you who want to understand this situation much more clearly, imagine that debt is a vacuum or a bubble of air in the economic system. This is the perfect metaphor for debt. Debt is actually imaginary income. It is money you spend that is not yet there. Now, imagine that the economy is full of these bubbles. Soon, these bubbles accumulated into one great big bad debt that was near bursting.

Last year, the bubble burst. Suddenly, the market realized that it was supporting all this bad debt out of thin air. It first manifested in real estate where the biggest loan bubbles where being created. Both the banks and the real estate industry colluded to convince people to invest in houses. They kept building houses to sell to these people, convincing them that they could have those houses rented out to pay the mortgage. But then the value of the homes started dropping and that’s when everything started to get messy. The domino effect of these bad debt bubble burst was a recession so bad that no one could have possibly predicted just how bad it would turn out.

The problem is too big now; no amount of money could possibly plug up that big hole that was exposed once the debt crisis blew open. The administration is allotting billions of dollars into the Obama bailout plans, but it is definitely not enough to plug a hole worth trillions of dollars.

Obama bailouts should help to slow down the process. But for how long? Right now, analysts are afraid of another market crash caused by the bubble of accumulated credit card debt that is approaching the trillion dollar mark.

There is however, a ray of sunshine in all these foreboding forecast. Tuesday last week, President Obama accepted the loan payments from banks who were recipients of the Obama bailout plans. All in all, the repayment amount was more than sixty seven billion dollars. This was considered by all as a good omen. If anything, it proves that the banks that were once in danger was able to amass enough profit to pay back that sum.

However the president himself cautions everyone who might think that this is a sign that the economic problem is solved. Although this news is positive, the government further cautions that the market problems are far from over which lead to a dangerous worry free can posture that could exacerbate the problem.

Hopefully, these painful times we are experiencing right now are merely labor pains for the birth of a new, better economic system and spending attitude. The new economy should no longer rely heavily on the illusory wealth created by loans. If these hard times can teach us the great lessons we need to have learned a long time ago, then a great thing would be gained from this big mess.