A crisis of confidence in economy — and Obama

August 9, 2011

Barack Obama’s presidency was birthed by economic collapse and financial crisis. Opportunity for a second term is now in growing danger of termination by the very same forces. After its Monday plunge, the U.S. stock market has fallen 18 percent since late April. (During his January State of the Union address, the president pointed to a “roaring” market as one sign his Keynesian policies were working.)

And the economy is advancing at such a slow pace that it risks sliding back into recession. Goldman Sachs thinks the nation’s GDP will expand just 1.7 percent this year and 2.1 percent in 2012, leaving the unemployment rate stuck at well over 9 percent. The firm sees a one-in-three risk of a downturn over the next six to nine months. Other financial firms think the odds are closer to 40 percent or even 50-50.

Then, once again, there’s Wall Street. Not only were bank stocks hammered in the sell-off, the cost to insure their bonds against default soared. Standard & Poor’s downgrade of U.S. government debt may have been a factor since Uncle Sam is backstopping the sector. (More evidence “too big to fail” is alive and well.) But there are also concerns about U.S. bank exposure to European banks and, in turn, their exposure to European government debt. (Sovereign defaults and a EU banking crisis would also slow economic growth in a key market for U.S. exports.) And, coming full circle, banks here still face billion in potential mortgage losses, a problem that another recession would only worsen.

In short, there is again a crisis of confidence in the U.S. economy – but in Washington, too. During his brief speech yesterday at the White House, Obama did nothing to calm jittery markets, perhaps achieving just the opposite. He blamed Tea Party Republicans for the debt downgrade. He said government discretionary spending couldn’t be cut much further. He called for raising taxes. And he repeated his demand for a mini-version of the 2009 stimulus – temporary tax cuts, infrastructure spending, more unemployment benefits.

The stock market, already falling before Obama spoke, saw selling accelerate as Obama made it clear he had no new ideas to offer. And he certainly gave no hint that he’s ready to adopt Republican ideas such as cutting business taxes or slashing regulation. Instead of a pivot, Obama stayed firmly planted in the anti-growth policies of the past two-and-a-half years. He’s even keeping Tim Geithner as Treasury secretary, practically begging the poor guy to stay. (Indeed, it was almost exactly a year ago that Geithner penned his “Welcome to the Recovery” op-ed.)

Americans have seen this movie before. And it didn’t end well. No one wants a sequel, least of all Obama. But the way things are going, another president-elect might be able to utter pretty much the same words on Nov. 6, 2012, as Obama did on Nov. 4, 2008:

The road ahead will be long. Our climb will be steep. We may not get there in one year or even one term, but America – I have never been more hopeful than I am tonight that we will get there. I promise you – we as a people will get there.

 


 

9 comments

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[...] Barack obama guardian group II James Pethokoukis | Analysis & Opinion | Reuters.com Barack Obama’s presidency was birthed by economic collapse and financial crisis. Opportunity [...]

[...] A crisis of confidence in economy – and Obama – Reuters [...]

The last time I felt this way about a president was in 1968, just before Johnson decided not to run for re-election, but I could also have felt the same way in the early spring of 1980, just before Kennedy challenged Carter in a primary.

Neither occasion was a time of hope and change, they were both times of a hope for change.

My country is being lead by someone whom I no longer trust.

Posted by PhilGrimm | Report as abusive

[...] Deal: Ron KlainBloombergObama, Republicans clash on debt 'supercommittee'Channel News AsiaReuters Blogs (blog) -Hilton Head Island Packet -ScrippsNewsall 425 news [...]

The president has lost his ability to connect with or persuade the American people.

Just like Gearge Bush had after his party lost congress in 2007.

Once the financial crisis started unraveling there was nothing George Bush could say or do to persuade the American people.

That is the frightful view from the White House at this time. He is painted into a corner by the unrealistic demands of his left, and the very real need to appeal to the center who abandoned him in 2010.

His political instincts seem to almost always be wrong. He mistakes the praise and unwavering support from within Washington with the will of the American people. He views congress, including the senate, with distrust and seeks ways to circumvent conflict with them without realizing that working without congress is like working without the American people.

I think we are going to have more dire economic news over the coming year as Europe reels through a major crisis. Conservatives will be able to demonstrate that Obama’s economic philosophy is similar to what brought down debt laden European countries. Obama is going to have to make the case that what he plans for America will not cause us to become like Greece. He is going to have to make this case to an electorate who is a lot less trusting than they were when he came to office.

Posted by psych495 | Report as abusive

I agree entirely with James – BO and his team are out of their depth – the wrong person , at the wrong place at the wrong time. Never again should we allow the election of a person so inexperienced, so untested, so ideological to take office of the Presidency ever again.

Posted by JohnCats | Report as abusive

Obama strong-armed Geithner to stay for adding
stability to the mess.
What was the real selling point?
Was there additional moneys involved to “reward”
performance. Last I heard, Geithner was at
a salary level of $191,300. Maybe the salary didn’t increase, but what about the nice parting gifts after
another two years?
No news on that front. It would be worth looking into.

Obama is always yelling about these CEO-types that run
companies into bankruptcy, yet get huge salaries and additional packages. Isn’t he kind of doing the same
as many corporate boards?

Maybe so.

Posted by limapie | Report as abusive

Oboma has NOT brought CHANGE, In fact ~~ THE ONLY real THING needing CHANGE !

Was Barack Hussein Obama II.

Barack Hussein Obama II ( Who hates American Values )

Who who is A ” SELF PROCLAIMED Enemy ” ~ of responsible, Morally Conscious HARD WORKING Americans.

oBOMAS supporters KNOW~ that Barack Hussein Obama II, WILL FORCE YOU to paY THEM, out of your PockeT ….

This UN~CHANGABLE fraud, has done His VERY BEST to Inspire VIOLENCE.

THESE ARE OBAMAS OWN WORDS.. saying “Bring it on” To his supporters.

Oboma ~ Demands Saying “Get ready for hand-to-hand combat with your fellow Americans”

– Obama has ALSO DECLARED to his Supporters

“I want all Americans to get in each others faces!–

Obama demands !

“You bring a knife to a fight pal, we’ll bring a gun” – Obama Cant wait to get everybody involved in some kind OF CONFRONTATION of some sort….

THESE ARE OBAMAS OWN WORDS..

Obama has ALSO DECLARED “Republicans are our enemies”-

** Obama on ACORN Mobs: “I don’t want to quell anger. I think people are right to be angry! I’m angry!”

ANGER VIOLENCE and more taxes….. THIS IS OBAMAS Change for america

/“Hit Back Twice As Hard”. He commands !

THESE ARE OBAMAS Very OWN WORDS..

*Obama on the private sector: ~~ “We talk to these folks…~ / so I know whose ass to KICK.“
OBOMA wants to KICK your ass /

Shouting THAT Republican victory would mean ~ “hand to hand combat”

HE IS EXPECTING people to kill & BE VIOLENT / for their immoral CAUSES

THIS IS WHAT HE LIVES FOR
THESE ARE OBAMAS OWN WORDS..
* Obama Tells democrats: “ I’m itching for a fight.” !

PLEASE go to reXes NEW WebsiTe ~ ! Oboma *( Just like Adolf Hitler~~ In that oBOMA~~~ Demands ! — [ THE FINAL SOLUTION – ~ For Un~Wanted Children

Barak Obama A MURDERER .~Torturing UNWANTED babys on DEATH ROE

http://obomanationinfanticide.sharepoint .com/Pages/default.aspx

OBAMA supports TAKING a little NEW BORN innocent child.. / BORN. ALIVE ~

sTabing it iN the head & SUCKs ITS BRAINS OUT.

He also demands, that a Child SURVIVING a FAILED ABORTION, Has no RIGHT to Life or medical care.

Posted by reXteryalizer | Report as abusive

Oboma has NOT brought CHANGE, In fact ~~ THE ONLY real THING needing CHANGE !

Was Barack Hussein Obama II.

Barack Hussein Obama II ( Who hates American Values )

Who who is A ” SELF PROCLAIMED Enemy ” ~ of responsible, Morally Conscious HARD WORKING Americans.

oBOMAS supporters KNOW~ that Barack Hussein Obama II, WILL FORCE YOU to paY THEM, out of your PockeT ….

This UN~CHANGABLE fraud, has done His VERY BEST to Inspire VIOLENCE.

THESE ARE OBAMAS OWN WORDS.. saying “Bring it on” To his supporters.

Oboma ~ Demands Saying “Get ready for hand-to-hand combat with your fellow Americans”

– Obama has ALSO DECLARED to his Supporters

“I want all Americans to get in each others faces!–

Obama demands !

“You bring a knife to a fight pal, we’ll bring a gun” – Obama Cant wait to get everybody involved in some kind OF CONFRONTATION of some sort….

THESE ARE OBAMAS OWN WORDS..

Obama has ALSO DECLARED “Republicans are our enemies”-

** Obama on ACORN Mobs: “I don’t want to quell anger. I think people are right to be angry! I’m angry!”

ANGER VIOLENCE and more taxes….. THIS IS OBAMAS Change for america

/“Hit Back Twice As Hard”. He commands !

THESE ARE OBAMAS Very OWN WORDS..

*Obama on the private sector: ~~ “We talk to these folks…~ / so I know whose ass to KICK.“
OBOMA wants to KICK your ass /

Shouting THAT Republican victory would mean ~ “hand to hand combat”

HE IS EXPECTING people to kill & BE VIOLENT / for their immoral CAUSES

THIS IS WHAT HE LIVES FOR
THESE ARE OBAMAS OWN WORDS..
* Obama Tells democrats: “ I’m itching for a fight.” !

PLEASE go to reXes NEW WebsiTe ~ ! Oboma *( Just like Adolf Hitler~~ In that oBOMA~~~ Demands ! — [ THE FINAL SOLUTION – ~ For Un~Wanted Children

Barak Obama A MURDERER .~Torturing UNWANTED babys on DEATH ROE

http://obomanationinfanticide.sharepoint .com/Pages/default.aspx

OBAMA supports TAKING a little NEW BORN innocent child.. / BORN. ALIVE ~

sTabing it iN the head & SUCKs ITS BRAINS OUT.

He also demands, that a Child SURVIVING a FAILED ABORTION, Has no RIGHT to Life or medical care.

Posted by reXteryalizer | Report as abusive

Oboma has NOT brought CHANGE, In fact ~~ THE ONLY real THING needing CHANGE !

Was Barack Hussein Obama II.

Barack Hussein Obama II ( Who hates American Values )

Who who is A ” SELF PROCLAIMED Enemy ” ~ of responsible, Morally Conscious HARD WORKING Americans.

oBOMAS supporters KNOW~ that Barack Hussein Obama II, WILL FORCE YOU to paY THEM, out of your PockeT ….

This UN~CHANGABLE fraud, has done His VERY BEST to Inspire VIOLENCE.

THESE ARE OBAMAS OWN WORDS.. saying “Bring it on” To his supporters.

Oboma ~ Demands Saying “Get ready for hand-to-hand combat with your fellow Americans”

– Obama has ALSO DECLARED to his Supporters

“I want all Americans to get in each others faces!–

Obama demands !

“You bring a knife to a fight pal, we’ll bring a gun” – Obama Cant wait to get everybody involved in some kind OF CONFRONTATION of some sort….

THESE ARE OBAMAS OWN WORDS..

Obama has ALSO DECLARED “Republicans are our enemies”-

** Obama on ACORN Mobs: “I don’t want to quell anger. I think people are right to be angry! I’m angry!”

ANGER VIOLENCE and more taxes….. THIS IS OBAMAS Change for america

/“Hit Back Twice As Hard”. He commands !

THESE ARE OBAMAS Very OWN WORDS..

*Obama on the private sector: ~~ “We talk to these folks…~ / so I know whose ass to KICK.“
OBOMA wants to KICK your ass /

Shouting THAT Republican victory would mean ~ “hand to hand combat”

HE IS EXPECTING people to kill & BE VIOLENT / for their immoral CAUSES

THIS IS WHAT HE LIVES FOR
THESE ARE OBAMAS OWN WORDS..
* Obama Tells democrats: “ I’m itching for a fight.” !

PLEASE go to reXes NEW WebsiTe ~ ! Oboma *( Just like Adolf Hitler~~ In that oBOMA~~~ Demands ! — [ THE FINAL SOLUTION – ~ For Un~Wanted Children

Barak Obama A MURDERER .~Torturing UNWANTED babys on DEATH ROE

http://obomanationinfanticide.sharepoint .com/Pages/default.aspx

OBAMA supports TAKING a little NEW BORN innocent child.. / BORN. ALIVE ~

sTabing it iN the head & SUCKs ITS BRAINS OUT.

He also demands, that a Child SURVIVING a FAILED ABORTION, Has no RIGHT to Life or medical care.

Posted by reXteryalizer | Report as abusive

Oboma has NOT brought CHANGE, In fact ~~ THE ONLY real THING needing CHANGE !

Was Barack Hussein Obama II.

Barack Hussein Obama II ( Who hates American Values )

Who who is A ” SELF PROCLAIMED Enemy ” ~ of responsible, Morally Conscious HARD WORKING Americans.

oBOMAS supporters KNOW~ that Barack Hussein Obama II, WILL FORCE YOU to paY THEM, out of your PockeT ….

This UN~CHANGABLE fraud, has done His VERY BEST to Inspire VIOLENCE.

THESE ARE OBAMAS OWN WORDS.. saying “Bring it on” To his supporters.

Oboma ~ Demands Saying “Get ready for hand-to-hand combat with your fellow Americans”

– Obama has ALSO DECLARED to his Supporters

“I want all Americans to get in each others faces!–

Obama demands !

“You bring a knife to a fight pal, we’ll bring a gun” – Obama Cant wait to get everybody involved in some kind OF CONFRONTATION of some sort….

THESE ARE OBAMAS OWN WORDS..

Obama has ALSO DECLARED “Republicans are our enemies”-

** Obama on ACORN Mobs: “I don’t want to quell anger. I think people are right to be angry! I’m angry!”

ANGER VIOLENCE and more taxes….. THIS IS OBAMAS Change for america

/“Hit Back Twice As Hard”. He commands !

THESE ARE OBAMAS Very OWN WORDS..

*Obama on the private sector: ~~ “We talk to these folks…~ / so I know whose ass to KICK.“
OBOMA wants to KICK your ass /

Shouting THAT Republican victory would mean ~ “hand to hand combat”

HE IS EXPECTING people to kill & BE VIOLENT / for their immoral CAUSES

THIS IS WHAT HE LIVES FOR
THESE ARE OBAMAS OWN WORDS..
* Obama Tells democrats: “ I’m itching for a fight.” !

PLEASE go to reXes NEW WebsiTe ~ ! Oboma *( Just like Adolf Hitler~~ In that oBOMA~~~ Demands ! — [ THE FINAL SOLUTION – ~ For Un~Wanted Children

Barak Obama A MURDERER .~Torturing UNWANTED babys on DEATH ROE

http://obomanationinfanticide.sharepoint .com/Pages/default.aspx

OBAMA supports TAKING a little NEW BORN innocent child.. / BORN. ALIVE ~

sTabing it iN the head & SUCKs ITS BRAINS OUT.

He also demands, that a Child SURVIVING a FAILED ABORTION, Has no RIGHT to Life or medical care.

Posted by reXteryalizer | Report as abusive

One day plunges don’t mean much to me any more. ~5 (biz) day movement matters more. How this week ends is more significant, imo.

If this week closes below 10,000, a lot of folks are going to be looking for something new to add to the end of their very long machine-trading if-then-else software logic statement after “buy US treasuries.”

#yikes
@DanFarfan

Posted by DanFarfan | Report as abusive

[...] a life of perks and prestige without all the pressure.Instapundit has a good roundup of reax links. James Pethokoukis: A crisis of economy and Obama. Posted in Uncategorized | No Comments Trackback URI | Comments [...]

[...] Impact on world markets? Positive effect on our stock market? Hardly. The warning signs are getting increasingly alarming. According to Reuters: [...]

[...] this is A crisis of confidence in economy — and Obama The stock market, already falling before Obama spoke, saw selling accelerate as Obama made it clear [...]

[...] a life of perks and prestige without all the pressure.Instapundit has a good roundup of reax links. James Pethokoukis: A crisis of economy and Obama. Ed Morrissey: The Empty Podium Presidency Disappointment Chickens [...]