Oil Futures Decline As Economic Data Disappoints - WSJ.com

CREDIT LINES AND SPENDING: Oil Futures Decline As Economic Data Disappoints - WSJ.com

As we look at the economy, it would seem reasonable to take a glance at what happens when Obama's socially conscious policies have been followed elsewhere. (Needless to say the picture isn't good!)

One can't help but think about the parallels the US under the Democrats has to a family where one of the partners seems in control (read: the spender) and thinks that every whim and wish of the children needs to be satisfied. At best, they fail to fix the roof on the house, maybe consider putting one of the staff on shorter hours - but, the little kids always get the extras - because they are just so important!

And, we would all expect the banker to start raising interest rates and restricting the family's credit line.

Of course, the spending parent (read: Democrats and Obama) can't understand why.

The US is in the position of just such an overspending family. The Republicans want to rein in spending, the Democrats don't want to cut back.

Luckily, the world's investors haven't cut back on the US's seemingly endless credit line.

But, it's illogical to assume this will go on forever.

Just as with the family that would spend on ballet lessons and private tutors, big vacations and fancy cars and new TVs - all the while forgoing roof repairs and maybe downsizing on the big house - so we have to look at the US.

Just as it was illogical for house prices to go up forever, so it is illogical to think that the US can under-invest in jobs and incur debt for consumption.

To listen to those who think the US debt ceiling should automatically be raised - because it has to be - perhaps a rethink as to what a banker would do to a family spending beyond its means should be given some consideration.