Wednesday, March 04, 2009

Obama, the Economy and the Stock Market!

"President Obama your agenda is not new, its not change and its not hope! Spending a nation into generational debt is not an act of compassion."--Rush Limbaugh at CPAC 2009

The Obama Economy--by the WSJ
An excerpt:
The market has notably plunged since Mr. Obama introduced his budget last week, and that should be no surprise. The document was a declaration of hostility toward capitalists across the economy. Health-care stocks have dived on fears of new government mandates and price controls. Private lenders to students have been told they're no longer wanted. Anyone who uses carbon energy has been warned to expect a huge tax increase from cap and trade. And every risk-taker and investor now knows that another tax increase will slam the economy in 2011, unless Mr. Obama lets Speaker Nancy Pelosi impose one even earlier.

Meanwhile, Congress demands more bank lending even as it assails lenders and threatens to let judges rewrite mortgage contracts. The powers in Congress -- unrebuked by Mr. Obama -- are ridiculing and punishing the very capitalists who are essential to a sustainable recovery. The result has been a capital strike, and the return of the fear from last year that we could face a far deeper downturn. This is no way to nurture a wounded economy back to health.

Listening to Mr. Obama and his chief of staff, Rahm Emanuel, on the weekend, we couldn't help but wonder if they appreciate any of this. They seem preoccupied with going to the barricades against Republicans who wield little power, or picking a fight with Rush Limbaugh, as if this is the kind of economic leadership Americans want.

Perhaps they're reading the polls and figure they have two or three years before voters stop blaming Republicans and Mr. Bush for the economy. Even if that's right in the long run, in the meantime their assault on business and investors is delaying a recovery and ensuring that the expansion will be weaker than it should be when it finally does arrive.

So, my liberal buddy Kirk was squawking about me blaming Obama for the stock market's trouble of late. He made the case that neither Bush nor Obama should be blamed when the stock market doesn't do well. I would agree with that to a certain extent. The problem is, the stock market responds to actual economic factors but also to whether things are being done to make things better or worse. Obama was supposed to ride in on his white horse and fix everything and give us hope and show us how he was going to make everything better.

The problem is, he isn't instilling confidence in ANYONE that he has the solutions to make the economy better. In fact, he's showing us that he is hostile towards free market capitalism which is the engine of our economy. NO ONE has ever SPENT their way out of a recession. You can't negate the fact that Obama makes the stock market nervous. And it isn't like the stock market has gone up and down while he's been president, it has only gone down. If his plans for the economy were good, the stock market would heave a sigh of relief and the numbers would reflect that, even before anything had changed. The problem is, the stock market has no confidence in Obama's socialistic "stimulus bill" and as a result it continues to plummet.

As I keep saying, for our own financial well being, we've got to hope that somewhere along the way Obama accidentally does something right.

Mike weighs in on the WSJ piece as well and 3 other articles on Obama's economic plans in, Obama's Goal is to Rollback Reagan Revolution in Economics and National Security. Rich Lowry brings up how Obama isn't being honest about his economic agenda in,Obama the Rhetorical Magician.

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