OBAMA SEES “HOPE” IN ECONOMY…

Posted on April 10, 2009. Filed under: News And Politics... |

 
This is his way of "appearing optimistic" as he follows Bill Clinton’s advice.  If this is the same kind of "hope" that he was touting when he was campaigning, pack your bags…he’s leading us all to CrazyTown.  My comments to this story are in green…
 
QueenBee
 
 

Obama sees "glimmers of hope" in economy

Fri Apr 10, 2009 6:28pm EDT

By Matt Spetalnick

WASHINGTON (Reuters) – President Barack Obama said on Friday the recession-hit U.S. economy was showing "glimmers of hope" despite remaining under strain and promised further steps in coming weeks to tackle the financial crisis.  Please!  No more bailouts!

"We’ve still got a lot of work to do," Obama told reporters after a meeting with economic and regulatory teams plus Federal Reserve Board Chairman Ben Bernanke. But he added, "We’re starting to see progress."  Where, oh, transparent One?

Obama spoke a day after encouraging trade and jobless figures pushed stocks higher, and White House economic adviser Lawrence Summers predicted the economy would emerge from a sense of "freefall" by the middle of the year.  How is this news?  We all know that what goes down will eventually go up.

Less than three months into his presidency, Obama stopped short of declaring that the recession he inherited from predecessor George W. Bush was bottoming out.   The recessession that he "inherited" from Bush?  Well, he’s got a lot of nerve blaming Bush for his mistakes.  This recession is mostly his doing, and the Democrats started it in 1999 with Bill Clinton.  Ever since his stimulus was unveiled, companies have been "freefalling" like a set of dominos.

But he offered a somewhat more upbeat tone than he has recently on the state of the economy, which is locked in its worst crisis in decades. "What we’re starting to see is glimmers of hope across the economy," he said.

"Over the next several weeks, you’ll be seeing additional actions by the administration," he added but gave no details.  We’d better brace ourselves.  When a president who wants to be transparent doesn’t offer any details, that means he doesn’t have the slightest idea what he’s going to do, but throwing us a "hope preserver" will buy him some time to try and figure it out.  That’s because he’s a "learn-as-you-go president.

Obama made no mention of "stress tests" being conducted at 19 major U.S. banks. The results, due at the end of April, are anxiously awaited by the financial markets.  I’d be very surprised if he doesn’t throw the banks another round of cash.  By the time we steer out of the mess the Democrats have gotten us into, we’ll all require stress tests to see how much damage was done to our lives.

The White House had said Obama was to receive a status report on those appraisals on Friday. Attempting to assess banks’ capital needs, the government is testing how they would fare under more adverse economic conditions than are expected.

MARKET SENSITIVITY

Mindful of market sensitivity, the Treasury Department is asking banks not to talk about the stress tests as part of their first-quarter earnings results, according to a source familiar with government discussions.  Something’s cooking, and it’s starting to stink. 

Asked whether banks were being told to be silent, Obama adviser Austan Goolsbee told Fox Business Network: "You ought to wait until the proper announcement time of all the bank examinations together, rather than have individual banks come running forward revealing their individual information alone."   Answer the question.

Obama did say, however, that he and his advisers discussed a program to use public-private sector investment funds to help banks clear their books of toxic assets.   How about clearing these banks of toxic executives who clearly had a hand in the toxicity of their banks in the first place.  Why is this never an option?  Giving more money to executives who clearly mismanaged the funds they had before seems like a stupid move. 

He also voiced confidence that his administration was addressing problems in both the troubled banking system as well as non-bank financial institutions, a sector that escaped adequate regulatory scrutiny before the latest crisis.  Translation:  He’s cleaning up the mess he left behind because he didn’t have the smarts to set stipulations before the money was given out in the first place.

Obama was briefed by Bernanke, Summers, Treasury Secretary Timothy Geithner, Federal Deposit Insurance Corp Chairman Sheila Bair, Securities and Exchange Commission chair Mary Schapiro and U.S. Comptroller of the Currency John Dugan.

Obama cited improvement in small business financing and what he called a "very significant" pickup in mortgage refinancing needed to stabilize the troubled housing market.

But he added, "The economy is still under severe stress."  So on one hand, he says, "Hey!  I see hope.  Things are looking up", and in the same breath, he’s saying, "Well, the economy is still under ‘severe’ stress."  He just did a 360, didn’t he?  Why did he even bother to open his mouth about this?  In essence, he’s saying that things haven’t changed.  We already know that.  To some, I may seem a little hostile toward this guy, but he hasn’t done anything to make me feel confident in his leading ability.  To me, he’s nothing but a liability…

QueenBee

 

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