The "Failing" obama ecomomy
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Thread: The "Failing" obama ecomomy

  1. #1
    Join Date
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    The "Failing" obama ecomomy

    Besides coming up with ways to take our freedoms obama is destroying what's left of the United States financially. As I read in another article and I find it true, "It's ameteur hour in our darkest times." Seems to me obama should worry more about helping the economy rather than trying interpret the 2A to match his (hidden) agenda. If he destroys the economy much further we will all need our firearms to protect what we have earned in our lifetimes from those who expect handouts because they think they deserve something for nothing.


    The Obama Economy
    As the Dow keeps dropping, the President is running out of people to blame.
    Our Troubled Economy Is a Response to Barack Obama's Policies - WSJ.com

    As 2009 opened, three weeks before Barack Obama took office, the Dow Jones Industrial Average closed at 9034 on January 2, its highest level since the autumn panic. Yesterday the Dow fell another 4.24% to 6763, for an overall decline of 25% in two months and to its lowest level since 1997. The dismaying message here is that President Obama's policies have become part of the economy's problem.

    Americans have welcomed the Obama era in the same spirit of hope the President campaigned on. But after five weeks in office, it's become clear that Mr. Obama's policies are slowing, if not stopping, what would otherwise be the normal process of economic recovery. From punishing business to squandering scarce national public resources, Team Obama is creating more uncertainty and less confidence -- and thus a longer period of recession or subpar growth.

    The Democrats who now run Washington don't want to hear this, because they benefit from blaming all bad economic news on President Bush. And Mr. Obama has inherited an unusual recession deepened by credit problems, both of which will take time to climb out of. But it's also true that the economy has fallen far enough, and long enough, that much of the excess that led to recession is being worked off. Already 15 months old, the current recession will soon match the average length -- and average job loss -- of the last three postwar downturns. What goes down will come up -- unless destructive policies interfere with the sources of potential recovery.

    And those sources have been forming for some time. The price of oil and other commodities have fallen by two-thirds since their 2008 summer peak, which has the effect of a major tax cut. The world is awash in liquidity, thanks to monetary ease by the Federal Reserve and other central banks. Monetary policy operates with a lag, but last year's easing will eventually stir economic activity.

    Housing prices have fallen 27% from their Case-Shiller peak, or some two-thirds of the way back to their historical trend. While still high, credit spreads are far from their peaks during the panic, and corporate borrowers are again able to tap the credit markets. As equities were signaling with their late 2008 rally and January top, growth should under normal circumstances begin to appear in the second half of this year.

    So what has happened in the last two months? The economy has received no great new outside shock. Exchange rates and other prices have been stable, and there are no security crises of note. The reality of a sharp recession has been known and built into stock prices since last year's fourth quarter.

    What is new is the unveiling of Mr. Obama's agenda and his approach to governance. Every new President has a finite stock of capital -- financial and political -- to deploy, and amid recession Mr. Obama has more than most. But one negative revelation has been the way he has chosen to spend his scarce resources on income transfers rather than growth promotion. Most of his "stimulus" spending was devoted to social programs, rather than public works, and nearly all of the tax cuts were devoted to income maintenance rather than to improving incentives to work or invest.

    His Treasury has been making a similar mistake with its financial bailout plans. The banking system needs to work through its losses, and one necessary use of public capital is to assist in burning down those bad assets as fast as possible. Yet most of Team Obama's ministrations so far have gone toward triage and life support, rather than repair and recovery.

    AIG yesterday received its fourth "rescue," including $70 billion in Troubled Asset Relief Program cash, without any clear business direction. (See here.) Citigroup's restructuring last week added not a dollar of new capital, and also no clear direction. Perhaps the imminent Treasury "stress tests" will clear the decks, but until they do the banks are all living in fear of becoming the next AIG. All of this squanders public money that could better go toward burning down bank debt.

    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.
    Last edited by Templar; 03-03-2009 at 06:55 PM.

    "Common Sense" gun laws. Common sense tells me that the gun didn't carry itself to the crime scene and pull it's own trigger. Punish the criminals, not the guns!

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  3. #2
    This article is not too far off. There are a few, but far in between, economists that are start to say the "D" word. And to make that worse the adjectives like mild were not added to the "D" word. t does look like a hard road to walk till the 2k10 elections..
    Semper Fi

  4. #3
    Join Date
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    Jeech. Give the guy a chance. It's been a bit more than a few months to clear up what Bush did in 8 years...............you really think our 2A rights will be taken away. He has more than just the economy to work on. The whole world is feeling the crunch Our law makers here in Illinois are working toward ccw rights as I speak. A step in the right direction in my opinion

  5. #4
    wolfhunter Guest
    Mr. Fish, 0bama's chance keeps slipping away from him. Every time he opens his mouth, the stock market drops. If spending MORE government money would fix things, we wouldn't have a problem after the last 8 years' spending spree. But even that spree doesn't compare to 0bama's desire to throw away money.

  6. #5
    Obama has yet to tell us when the last time the gov't was able to tax and spend its way to prosperity. I get the impression he thinks he's smarter than everyone else who tried it before.

  7. #6
    wolfhunter Guest
    “We contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle” - W. Churchill

  8. #7
    Quote Originally Posted by MR. Fish View Post
    Jeech. Give the guy a chance. It's been a bit more than a few months to clear up what Bush did in 8 years...............you really think our 2A rights will be taken away. He has more than just the economy to work on. The whole world is feeling the crunch Our law makers here in Illinois are working toward ccw rights as I speak. A step in the right direction in my opinion
    What planet did you just fly in from?
    By faith Noah,being warned of God of things not seen as yet, moved with fear,prepared an ark to the saving of his house;by the which he condemned the world,and became heir of the righteousness which is by faith Heb.11:7

  9. #8
    IMHO, Alot of these troubles started when Billy was in office. The DNC has been having to bite it's lips on the spending packages and pork they wanted for their home districts. I believe that in 2010 that a bunch of coat tail Dems will be fired.

    From Yahoo News..
    "We're probably in a depression now. But it's not going to be acknowledged until years go by. Because you have to see it behind you," said Peter Morici, a business professor at the University of Maryland.~

    The D-word: Will recession become something worse?

    Can we call it a Depression yet?
    Depression. It conjures up images of food lines snaking around street corners, of unfettered unemployment, of despair over the stock market.
    But things don't have to be that bad to still be considered a depression. So, are we in one now?
    ABC News reports that we just might be:
    The trouble with firmly determining whether we are in a depression or not is that the word 'depression' is hard to define. A recession, on the other hand, is more easily defined. It's generally a reduction in a country's gross domestic product (GDP) for at least two quarters.
    Semper Fi

  10. The problem is that "recovery" is relative. To what extent are they trying to recover? Recovery to where we were 8 years ago is just not possible. The jobs needed to get there just don't exist and never will. These infrastructure jobs are basically temp jobs and government jobs. Neither will help the private sector long term. Many of the infrastructure related contracts will go to government contractors who will continue to outsource what ever they can. We will recover, but to a much lower standard of living that we're used to.

    Lets just hope that these millions of people buying guns all of a sudden have the stones to use them when the time comes.

  11. #10
    Quote Originally Posted by rrc1962 View Post
    ~~The problem is that "recovery" is relative. To what extent are they trying to recover? Recovery to where we were 8 years ago is just not possible. The jobs needed to get there just don't exist and never will.~~
    Yes, Sir Agreed and That, Too, is part of the problem.

    ~~ Neither will help the private sector long term.~~
    We have not even tryed to fix the Priv Sector Yet. We have to repair the fanancial system with common sense credit. We do not teach fiancial responsibilities in our schools. We do not teach Save 10% first..., We do not Teach Tithing 10% whether to a church or some worthy charity.

    We will recover, but to a much lower standard of living that we're used to.
    This is the US of A and we will recover.
    Semper Fi

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