Archive for the ‘economy’ Category

Goals & Priorities

March 9, 2009

I wrote before that I think that our Dear Leader and his team are in over their heads in regards to the economy. They aren’t sure of what to do and the market is responding to that lack of confidence.

Here is another theory, Team BO just really doesn’t care about the economy. It will recover on its on over time and they have other priorities. That is what Kevin McCullough is claiming and he makes sense.

President Obama knows the history of recessions and how Americans get out of them. He knows, for example, that if he gave back to the American family in just pure cash handouts what he is instead planning on taxing them (with interest) in the days to come, that the number would loom between $25,000-$65,000 per family, for every family in America.

But pretending to be doing something about the problem is only half the strategy for Obama. He truly intends to see socialized health care, and European styled labor agreements become reality in America. He knows the consequences of doing such things, he’s seen all the projections and what the outcomes would be, but he’s doing it anyway.

This actually fits in with his Chief of Staff’s often quoted mantra: “You never want a serious crisis to go to waste. And what I mean by that is an opportunity to do things you think you could not do before.” The economic crisis is being used by the far left extremists to create an atmosphere of fear and shove through socialist policies under the guise of “helping the economy.”

If our Dear Leader and the democrats where interested in helping the economy, they would focus on job creation by small businesses. Most jobs in this country are in small businesses and unlike “shovel ready” construction projects, those jobs will still be there when the taxpayer funding runs out. Instead, the policies of our Dear Leader and the democrats are designed to hurt small businesses.

Ed Morrissey has his own thoughts on Kevin McCullough’s theory:

Obama is a typical liberal ideologue who thinks that America has failed in the sense of equality of result. He sees inequities and thinks that government exists to eliminate all of them. My guess is that he’s aiming much more for France than Venezuela, but neither are particularly palatable destinations for a national economy. Obama seems to see our entire 230-year history as a long crisis that his statist policies will end.

What we’re seeing is the policy playbook of the Left. We predicted this all along, while the media hailed Obama as some sort of centrist without a shred of evidence for that. He has a long history, though, of alliances with the Left, and it comes as no shock that Obama has shown his true colors in the first days of his presidency. Massive government spending, reductions in defense, and preparation for nationalization of health care, banks, and other private industries fit well as a pattern with those policy goals.

Bottom line. Obama‘s goal is not to fix the economy, but to fundamentally change the role of government in the United States of America.

UPDATE: BusinessWeek asks: Did Obama cause the stock slide?

A quick review of history

March 8, 2009

See democrats Maxine Waters, Gregory Meeks, Lacy Clay, Artur Davis and Barney Frank defend Freddie/Frannie and attack calls for regulations. Maxine Waters goes as far to defend the policy of giving government insured loans to people who can’t pay for them. See one of our Dear Leader‘s financial advisers claim that houses are “risk free.”

See Republicans Ed Royce, Christopher Shays, Don Manzullo call for regulation and point out that Freddie/Fannie are not covered by Sarbanes-Oxley.

There are some Republican congresscritters who should be testifying in orange prison jumpsuits along with Waters, Frank, Dowd and the other democrats who engineered the housing market meltdown for political gain. The CRA, however is at the root of the housing market meltdown and is a creation of the democrat party and was designed to buy votes using federal taxpayer money.

Anyone who tries to tell you that the current financial meltdown is purely the fault of President G.W. Bush (although he does share some of the blame), is either ignorant of the basic facts or is lying in order to promote a hyper-partisan far left agenda.

Obama’s Bear Market

March 6, 2009

That is what Bloomberg is calling it.

The Dow Jones Industrial Average fell 20 percent since Inauguration Day, the fastest drop under a new president in at least 90 years, according to data compiled by Bloomberg.

“People thought there would be a brief Obama rally, and that hasn’t happened,”

“It’s the Obama bear market,” said Dan Veru, who helps oversee $2.8 billion at Palisade Capital Management in Fort Lee, New Jersey. “We don’t know what the rules are in so many different areas the government is touching.”

“Obama should be listening to the stock market more than talking to it,” said Kenneth Fisher, the billionaire chairman of Woodside, California-based Fisher Investments Inc., which oversees $22 billion. “He hasn’t gotten out of the gate well.”

I’ve seen theories put out that Team Obama is tanking the economy on purpose.

Personally, I’m not buying it for the simple reason I don’t buy into most conspiracy theories, they place too great a burden of competence on the government.

Occam’s Razor provides a simpler and much more likely explanation. These guys are in over their heads, they aren’t sure of what to do and the market is responding to that lack of confidence. That the one thing Team BO is sure of is they want to jack up taxes, including that “Cap & Trade” scheme that is going to hit the lower economic end of the population hardest, and that probably isn’t blowing up Wall Street’s collective skirt either.

Michelle Malkin calls it “The Steve Urkel-ization of the economy.”
It’s worth a click just for the nifty Photoshop work.

Update: Michael Boskin writes in the Wall Street Journal that it is Obama’s radicalism that is killing the Dow.

It’s hard not to see the continued sell-off on Wall Street and the growing fear on Main Street as a product, at least in part, of the realization that our new president’s policies are designed to radically re-engineer the market-based U.S. economy, not just mitigate the recession and financial crisis.

The illusion that Barack Obama will lead from the economic center has quickly come to an end. Instead of combining the best policies of past Democratic presidents — John Kennedy on taxes, Bill Clinton on welfare reform and a balanced budget, for instance — President Obama is returning to Jimmy Carter’s higher taxes and Mr. Clinton’s draconian defense drawdown.

Mr. Boskin writes there are some good points to BHO’s budget, but that negatives far exceed the positives. The negatives include tax hikes during an economic downturn, and the implementation of far left extremist radical “environmental” (more accurately “watermelon”) policy that starts heavy fines on fossil fuels, cutting off access to domestic oil, natural gas & shale oil deposits immediately, while funding “greener” energy technologies that will not put a watt of energy into America for at least a decade.

If you read my tech blog, you’ll see I’m a big fan of domestic sources of alternate energy, but cutting off immediate sources of energy before alternate are ready is just sacrificing the American economy on the alter of an extremist radical movement that has been high jacked by socialists.

Mr. Boskin is a professor of economics at Stanford University, and goes into more detail in his article. Stop by and read it.

Morning Link Round Up

March 4, 2009

A collection of links, mostly gathered from No Moss Here.

Obama buyer’s remorse.

Remember when Michelle Obama sneered at the $600 rebate checks?

As Dow keeps dropping, Obama running out of people to blame.

While Americans are forced to cut back, “Obama kicks up White House entertaining”

Obama Declares War on Investors, Entrepreneurs, Businesses, And More

Obamas party in the White House while Wall Street collapses

March 3, 2009

All BHO needs now is a fiddle.
First the non-stop party scene at the White House since the Obamas moved in.
At least three concerts, a Superbowl party for congressional democrat “leaders”, and a actual conga line.

Then let us take a look at the performance of the DOW since the democrats porkulus bill passed:

The market’s lack of confidence in BHO and the democrats plan for the economy is painfully plain to see.

The market responds to "Hope & Change"

February 23, 2009

As of 1630, the Dow is down 250 points today. 10 points of that drop since our Dear Leader went on TV to talk about “financial responsibility.”

Meanwhile in Chicago…

February 20, 2009

For once, not a story of democrat corruption in Chicago. I know a bit of surprise, since corrupt democrats are in the vast majority in Chicago.
Take a look at this video, and pay attention to the reactions of the people working in the Chicago Stock Exchange.

The reality is that the market has been dropping each time our Dear Leader and the democrats in Chicago announce another one of their “Five Year Plans.”

Update: The DOW is down another 100 points on “Hope and Change”, or as it is now known,”Hype and Crappola.”

What Cafferty missed

February 17, 2009

CNN’s Jack Cafferty has a scathing editorial about the democrat Porkulus bill that our Dear Leader will sign later today.

First let’s review what Jack Cafferty nailed.

What a joke. Your Congress has voted to spend almost $790 billion of your money on a stimulus package that not a single member of either chamber has read.

The criminal part of this boondoggle is divided into two parts. The first is the Democrats promised to post the bill a full 48 hours before the vote was taken to allow members of the public to see what they were getting for their money.

It didn’t happen. Why am I not surprised? Congress lying to the American people has become part of their job description. They can’t be trusted on anything anymore.

When Reid first announced the compromise had been reached, Nancy Pelosi was nowhere to be seen. And it would take an act of God for this egotistical, arrogant woman to miss a photo op where she could take credit for anything. But she wasn’t there.

The second part of the crime is the contents of the bill itself. Far from being only about jobs, infrastructure and tax cuts as promised, the stimulus bill stimulates a bunch of other stuff as well.

Let’s review, the democrat leadership in Congress shoved this through at a dangerous pace with no bipartisan support (Let’s be honest here, the 3 “Republicans” who voted for this pork fest are more liberal than the 7 Blue Dog Democrats who voted against it.), and loaded it down with massive amounts of non-stimulus pork (which Cafferty lists just a small fraction of).

What did Cafferty miss? Well, to start with, he tries to paint this as a “bi-partisan” fiasco. Nope, not gonna fly. If on the off chance this actually does some good over the next year (with only 8% of the porkulus bill being spent in 2009, that is kinda doubtful), the democrats will take all the credit. The flip side is if this pork barrel express legislation tanks, they have to take all the blame.

The other thing Cafferty missed was the correct role of our Dear Leader. Mr. Cafferty writes:

It’s really too bad President Obama couldn’t figure out a way to jettison these two who are poster children for everything that is wrong in Washington. The Associated Press called the birth of the stimulus bill “sausage making” in the best tradition of Washington politics as usual.

One of our Dear Leader‘s jobs is the head of his party. He should be dictating policy to Reid and Pelosi, not the other way around. In the case of this Porkulus bill, Barack Hussein Obama failed in his duty to the American people by letting the so-called “leaders” of his party in Congress load what is supposed to be a bill to help all of the American people with payback for their party’s supporters and pork barrel spending for democrat congressional districts. To make matters worse, our Dear Leader is actually going to sign this pig into law. He’ll wrap it up in very pretty words that he will read from his teleprompter, but no matter how much lipstick he puts on this bill, it is still a pig.

The math is simple

February 15, 2009

Leftists will try to pass the lie that the Bush Tax Cuts increased the deficit.

That is a flat out partisan lie. The facts are easy to check, federal tax revenue actually went up after the Bush Tax Cuts.

What cause the massive increase in the deficit during the Bush 43 administration was the huge increase in spending that went on at the same time. You can call President G.W. Bush many things, but a fiscal conservative isn’t one of them.

The Republicans in Congress were just as guilty on the irresponsible spending, which is why they lost the votes of their base in the 2006 and 2008 elections.

As I have said before, the Republicans got their collective asses kicked, and they deserved it. They need to find their way out of the woods, and a return to actual fiscal conservatism is a damn good first step.

The People’s Stimulus

February 12, 2009

This is a damn good idea, and would boost the economy better and faster than funding the pet pork project of almost every democrat in Congress. Remember that brave 11 democrats stood with the American people and against their party by voting against Pelosi’s “Porkulus” plan.

Now our Dear Leader should veto that pork laden pig and follow this sensible and effective plan.