As we approach the elections in November, an interesting dilemma is facing corporate America. On the one hand, they want to keep money tight because that keeps the economy stagnant and unemployment relatively high. That is bad for Obama politically, and the big money folks would like to see more republicans in the legislature. That is always good for their interests.

But, on the other hand, if they keep the money tight and the unemployment high, then there isn't a lot of money out there for regular americans to spend to buy corporate america's products. That means the only way they can make profits is to cut their costs. That's a shabby way to show profits, and by this time, everyone knows it. It's superficial and artificial, and the big money interests can't really grow that way. And while I'm not so much into unfettered growth as the answer to our economic ailments, that's the holy grail for the big corporations. But they won't get it with tight money, especially with the capital needs to invest in new technologies for energy, transportation, and communication. That is going to need a much looser money supply.

In the meantime, the companies are eeking out profits the best they can, while they are chomping at the bit to get at the bigger money sitting on the sideslines out of fear of the future. But, until people get employed, that money is not going to loosen up. The only money that is really available is the massive savings the big corporations are sitting on. Their problem is that if they turn it loose now, that means political gain for Obama, and they are too greedy to want that.

So it will be interesting to see what they do. I still am standing by my continued prediction that dems will do better than most of the pundits are predicting. We'll see. But I don't think that the big money can stand to sit on the sidelines too much longer. They are bursting at the seems to get on with things. And maybe enough of them will decide that they can live with Obama afterall and not try and hold back to hurt him.