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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.

Following the whirlwind of being elected to the highest position in the country, and the all the pomp and glamour that comes with the office, some people have woken up one day and asked themselves: “what happens to us now?  Where will the Obama Bailout plan take us now that he is in power?”

While these people ponder the ultimate effect the much-vaunted bailout plan will have on them and their lives, some people decided to go back and contemplate US President Barack Obama’s supposed “promise” last year just before he got the Presidency.  A look back to October of last year reveals that President Obama said his chief priority, if elected, would be protecting tax dollars, and that he would demand a full review of the $700 billion rescue plan to make sure that it is working for taxpayers.

The bottomline here being his promise to review the plan if he becomes president and pledge that taxpayers would never again have to put their money on the line to pay for the irresponsibility of Wall Street executives.

President Obama issued this statement at a crowd of more than 15,000 all huddled during a chilly October morning last year in La Crosse, just near Wisconsin’s border with Minnesota:  “If you, the American taxpayer, are not getting your money back, then we will change how this program is being managed. If need be, we will send new legislation to Congress to make sure that taxpayers are protected in line with the principles that I have put forward”.

President Obama mentioned the apparent need to reign in spending in Washington, to be done in part by increasing government efficiency and ending the war in Iraq.  The president also emphasized that the idea he proposed, raising the FDIC cap to $250,000 from $100,000 proposal, was included in the bailout plan and again called on members of both parties to support the legislation “even if it’s not popular” for the good of the country.

So in all of this, where does the Obama Bailout Plan stand now?  And where does that put the greater American public that is in dire financial straits because of the recession?  Right now, it put everyone and everything in limbo, because the wheels have just barely started turning, and it remains to be seen if the greater American public is set to sleep inside refrigerator boxes and under bridges, or if they stand to retain whatever little roof they have over their heads.  Let us all hope it is the latter rather than the former.