Obama lays out shallow, inadequate steps on economy

Complete story here.

Obama's specific proposals include: My comments added in red..

-- A temporary $3,000 tax credit to companies for each new job created in the United States over the next two years. (This seems to be an admission that tax reductions work..Obama just wants to be able to brag about a tax break, but the tax reductions are really small and really temporary. Oh goody we now have $3000 to pay a new employee for... NOT VERY LONG!)

-- Penalty free withdrawals from 401(k) and IRA retirement accounts up to a maximum of $10,000 this year and next. (if there's any money left in there.)

-- A 90-day moratorium on foreclosures for homeowners who are living in their homes and making good-faith efforts to make their mortgage payments to banks that receive assistance under the $700 billion federal bailout plan. (Define 'good faith efforts. This sounds a lot like the crap that got us into the crisis in the first place. It also sounds like not making Katrina evacuees leave their hotel rooms after three years of lounging.)

-- Calling on the Federal Reserve and Treasury to set up a facility to lend to state and municipal governments, similar to the steps the Fed recently took to provide liquidity to the commercial paper market. (Create more bureaucrats...always a good idea.)

The plan also calls for temporarily eliminating taxes on unemployment insurance benefits and having the Fed and Treasury prepare for guaranteeing a broader range of liabilities of the banking system. (Again more tiny and very temporary tax breaks along with more bureacratic BS.)