People such as Time Magazine who say Obama is the second FDR must be smoking dope. FDR preached optimism with memorable phrases such as “We have nothing to fear but fear itself.” Great words, yes?
Compare Obama: “The economy may fall into a state from which we may not recover.” That scared the heck out of me. And Obama scared Wall STreet into selling the market lower, which hurts consumer spending and drives the economic engine lower.
But Obama’s biggest flub is Tim Geithner. You only have one chance to make a first impression. Obama built him up as a means of getting Congress to approve his appointment as Treasury Secretary by saying his criminal tax evasion had to be forgiven because Geithner is the only person who can save the financial system and economy.
Got that? Obama said Geithner is the only person who can save the financial system and economy. What a stupid statement. Nobody in the financial community believes such ridiculous hyperbole. It just is not true.
So then, after Obama has bult up expectations to an unrealistic level, Geithner makes his first impression. He makes his first presentation and has an opportunity to set forth a bold new plan. With Obama’s build up, coupled with Congressional total ignorance of all things financial, any plan Geithner proposed would have been approved.
So what did Geithner say? Absolutely nothing!
Geithner just blathered more of the same old, same old, enthusiastically avoiding anything of substance, and certainly nothing resembling a bold new plan.
Investors are so much smarter than politicians. When investors saw Geithner was so desireble to Obama because what they had in common was words without substance, investors dumped stocks.
Just as the big market decline came as soon as it was clear Obama was going to be elected President, investors took him at his word that he was going to raise capital gains taxes, and sold stock to lock in profits at the lower rates.
Thus, Obama started the tremendous market decline of 45 to 55 percent.
Now Geithner, who had the chance to hit a home run, instead barely connected with a little girlie whiffle ball.
Disappointed investors are running for the hills.
Passage of the stimulus package is not reassuring investors because Geithner has shown that he has no idea what to do with the money.
And everybody, even the main stream media whores who are totally in the bag for Obama, are saying that nobody in the Senate or the House of Representatives have read the 1,071 page legislation with no name that is spending, at a minimum, $787 billion with no chance of creating permanent private sector jobs, other than a few thousand in building solar panels.
And of course, nobody will buy solar panels unless the government pays us to buy them, because they are not economically competitive with the electricity generated with traditional methods.
So, Obama is talking down the markets, and further hammering them down with tax cheat Geithner who has no idea how to spend the money.