Posted by: Puma1 | February 25, 2009

Miracle-Worker Obama Pledges to Spend Trillions, Cut Taxes, AND Erase the Deficit; Markets Respond to this Nonsense By Crashing.

No amount of hope-and-change speechifying can change the fact that Obama’s policies simply don’t make sense for America: spending trillions and trillions of borrowed dollars in order to solve a crisis caused by institutions and individuals borrowing much too much.

This is like using a blowtorch to put out a brush fire.

Investors know that Obama’s laundry list of vague and unaffordable promises — spend trillions, reform education, create universal health care, transfer the Iraq war to Afghanistan all while allowing billions of dollars in earmarks and still somehow pledging to trim the deficit in half in four years (huh?) — is nothing more than smoke and mirrors, lacking feasibility like Obama’s speeches lack specifics.

That’s why the markets continue to respond to Obama’s empty economic words by tanking:

President Obama spoke twice in the last 24 hours about the country’s economy, and a jittery Wall Street responded both times with sharp downturns.

The morning after Obama’s prime-time economic pep talk on Tuesday night, the markets opened low and lost 194 points before rallying.

Stocks edged into the black late in the afternoon, but plunged back into the red as Obama appeared to discuss his plans for tougher regulations of financial institutions. The Dow closed down 80 points today.

“Strong financial markets require clear rules of the road, not to hinder financial institutions, but to protect consumers and investors,” Obama said in urging Congress to write new regulations with teeth.

The president said that the country’s regulatory apparatus needed “modernizing and streamlining,” because too often it failed to protect investors.

Obama said that Wall Street “needed strict accounting, starting at the top,” to ensure that financial corporations were able to withstand economic stress and that the language of the marketplace was clearly understood.

via ABC News: Obama’s Speeches Don’t Wow Wall Street

The more Obama talks, the less reassuring he is as a leader. So he took Bill Clinton’s advice to be more hopeful. Good. But Obama is no wonk, clearly is no math wiz based on his this economic proposals, and his dismal performance one month in has not been reassuring.

Even his fans at Newsweek are worried:

At a similar spot in a different time – a deep recession in the twilight of the Cold War, 1981 – Reagan promised to double defense spending, cut taxes sharply and balance the budget. The plan was an impossible pipe dream. And yet Reagan’s optimism helped lift the country out of its funk and restart the economy.

But there was a cost.

We began the process of uncoupling federal spending from a sense of responsibility to future generations.

I’m wondering if the same thing is about to happen now.

The president is vowing to reform and vastly expand health care, to renew education, to remake the energy and auto industries, and to save the banking system. Oh, and let’s not forget: to end the recession.

He’s going to do all this and, at the same time, cut the deficit in half by 2013. He says, his budget will be a new model of candid “transparency” – unlike all of those fiction-filled budgets of the past.

I don’t think I’m being unduly cynical to wonder if it’s possible.

via Fineman: Obama is Reagan redux – White House- msnbc.com.

Oooh! Ooh! Pick me! Pick me! I can answer that.

One does not need to wonder: it’s simply not possible. Ronald Reagan — he of the huge deficits — swore up and down you could cut taxes for the rich, spend outrageously on defense, and still somehow be fiscally responsible. Of course this never made sense, and Reagan’s policies destroyed America’s working class while putting the nation in a debt crisis from which it is still trying to emerge.

Obama, all at once, wants to cut taxes, spend more than any other President ever, and still somehow cut the deficit. Um…okay? Arithmetic 101 anyone?

No wonder Obama thought Reagan was a better President that Clinton: Obamanomics bears a disturbingly close resemblance to Reagan’s voodoo economics and has little in common with Clinton’s sound fiscal moderation.

The American people need a chief executive, and instead we elected a preachy chief telepromter-reader-guy who is either lying about his promises or doesn’t understand basic math.

Either way, we’re screwed.

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Responses

  1. Hey!! Is there anything The Anointed One can’t do. After all, in a recent poll, he beat out Jesus.


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