Party likes its 1932?

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I found this article in the Telegraph. I suppose the double dip (or oncoming depression as its being called in this article) will be blamed completely on Obama.

I understand this didn't happen over the last 18 months, however I do believe the Obama administration could have been far more aggressive in how they tackled the economy. Of course I become more and more convinced that the POTUS role in America is just a figure head, and that the man himself has very little individual say in most big decisions.

I suspect if the Republicans take control, it will once and for all drive the car over the cliff. But perhaps that's what is needed the big crash and burn. Then the nation can come together and decide to rebuild in a different, forward thinking manner.

I hope so.

meljomur's picture
meljomur
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Jul. 31, 2007 4:01 pm

Comments

Chicago School

Obama is a sucker for the Chicago School of Economics, and so are most of our Senators and Congressmen. The new catch phrase is "Corpoarte Governance" and I mean in the worst sense. They are 100% disconnected from the fact that the repeal of Glass Steagle, the CFMA and other deregulatory policies that lay at the heart of our economic death spiral.

Sadly to say, any double dip will rightfully lay at Obama's feet. He has failed to address any of the structural problems facing the country. Choosing instead to pay the margin calls of selected banks and Wall Street Firms while the underlying assets continue to devalue. As long has he has Tiny Timmy G, Larry the Lizard, and Rahm Emmanuel hanging around he deserves 100% of the blame.

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babbaramma
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Apr. 6, 2010 6:21 pm

I agree. It's Obama's fault now. It's not because he hasn't gotten anything of significance passed in terms of economic reform, it's that he's not even fighting for a significant change. There is no digestible message he's trying to sell, which reassures the public he's on the job with a clear mission to serve them.

FDR had many challenges, and it took a really long time for those challenges to be overcome, but the entire time he had a clearly understandable message that reassured everyone that better days were ahead, it was called "The New Deal." A clear message, anchored with catchy title.

All leaders need these simple and digestible messages, anchored with a title that reminds everyone what they're about. Even Bush had one, it was called "911."

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Common_Man_Jason
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Jul. 31, 2007 4:01 pm

I would say it's more of mixed message or a dog and pony show. The message has been there on healthcare, energy and financial reform. Unfotrunately, they have all turned out to be Trojan Horses.

Rather than throwing the bankers in jail, he handed over the Treasury. Now they are going to hang him with his own golden rope, and the rest of us along with him.

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babbaramma
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Apr. 6, 2010 6:21 pm

Mel, the article pointed out the economy seems to be going into free fall. Many economists agree. However, the solution offered in the article will intensify the fall...not stop it.

QUOTE: "It is obvious what that policy should be for Europe, America, and Japan. If budgets are to shrink in an orderly fashion over several years – as they must, to avoid sovereign debt spirals – then central banks will have to cushion the blow keeping monetary policy ultra-loose for as long it takes."

If the employer of last resort shrinks its budget, there will be less and less consumer demand in the economy...along with a lowering of tax receipts from rising unemploment. Cutting budgets will increase deficits. Austerity programs have never, ever worked except for a very few at the top of the financial heap. Hoover sought to balance the budget at the first indications of the Great Depression. . We saw where that went.

Central Banks pumping money into banks doesn't do a thing when there are no qualified borrowers...it just gets used to feed the bubble beast on Wall Street. Bubbles pop.

There will be no recovery if this policy is pursued....and the policy now seems to be a given. The same fools who engineered the meltdown have been given the task to fix it...adhering to their same failed economic ideologies while doing it. Stay out of debt..

Chicago School Economists re-wrote the history of the causes of the Great Depression. to fit an ideology...and are now attempting to fix what isn't and never was...... rather than addressing real causes of economic meltdowns.

Red Flags for the Economy:

http://www.counterpunch.org/whitney07062010.html

Retired Monk - "Ideology is a disease"

polycarp2
Joined:
Jul. 31, 2007 4:01 pm

"Chicago School Economists re-wrote the history of the causes of the Great Depression. to fit an ideology...and are now attempting to fix what isn't and never was...... rather than addressing real causes of economic meltdowns." PC2

And continue to do so....Amen!

"If Mike Castle wants to blame a GSE for the meltdown, he should start with the Fed and Allan Greenspan who also ushered in these flawed economic theories from a fictional novel written by the sociopath Ayn Rand. Funny that the same man credited with the phrase" irrational exuberance" would some how think that markets are detached from the greed and emotions that are inherent to the people that play them."

-siscon66

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babbaramma
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Apr. 6, 2010 6:21 pm

poly, I didn't say I agreed with the solutions the author of this article proposed. I just thought it was an interesting perspective on the potential of what may lie ahead for all of us.

As far as Obama is concerned. I am now pretty much convinced the reason the GOP ran Mr. Roper and Chrissy against him, was because they knew how bad the economy was going to get (remember all the hidden costs of Iraq and Afghanistan which were never on the books during the Bush years). Then the outcome would be the GOP back in the drivers seat in the midterm elections and possibly 2012.

And then god help the USA!

Because the Obama administration may not have made the best decisions, but you really want to watch what another neo-conservative Republican administration will do?

meljomur's picture
meljomur
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Jul. 31, 2007 4:01 pm

You know regarding FDR, does anyone wonder what his fate might have been if the US hadn't been involved in WWII? (I am thinking JFK).

meljomur's picture
meljomur
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Jul. 31, 2007 4:01 pm

Chrissy and Mr. Roper!

I whish that were true. Obama had a chance to come in and be FDR. He chose to be Uncle Tom instead. He has done the wrong thing on almost every issue. The ARRA is a joke and filled with short term stimulus and tax cuts when it needed long term investment.

I will say the Kerry loosing to Bush in 2006 was the best thing that ever happended to him. Even if it was not for us.

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babbaramma
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Apr. 6, 2010 6:21 pm

Currently Chatting

First Columbia took on their drug lords, now they're taking on their billionaires...why can't we?

America’s billionaires are driving this nation’s poverty epidemic. But it doesn’t have to be that way.

As we speak, working-class Americans are getting screwed over by policies that favor the wealthy elite, and leave everyone else in the dust. As a result, more and more Americans are living in poverty.

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