Saturday, January 23, 2010

Democrat and the Obama Administration Stumble Along

The Administration, in reaction to the stunning defeat in Massachusetts, launched an ill-conceived attack on the banks resulting in a steep drop in stock markets this week. The Obama administration came into office with a unique situation. A malaise financial lay over the country (note, that despite Democratic claims such clouds remain), and the Democrats were given the Presidency, significant control of the House and a filibuster proof 60-40 majority in the Senate. Basically, the reigns of power rested with the Democrats, and the rudderless administration began their vault into ineptitude.

First, they began with their abdication of the "stimulus" plan. Instead of leading the process, they ceded control to Congress. A Congress who failed to understand the severity of the situation that the country was in. Instead, these geniuses decided on a $787 billion dollar boondoggle. The complete lack of leadership on the part of the Administration was stunning at the time, in retrospect, it appears almost criminal. The package has done little to stem the tide of recession, and of course the Washington clowns are now planning "stimulus" 2. Now as the situation is more dire economically and politically, the second "stimulus" will be little more than state bailouts and extensions of unemployment benefits.

Yes, indeed there were intervening problems. Despite the Administration's ridiculous claims that unemployment would stay at 8%, anyone with economic sense knew that was an absurd claim. Moreover, the overheating of the Chinese economy certainly had a impact on market declines this week. That said, it does not excuse the hubris, if not ignorance that has thus far characterized this Administration. In the face of a cataclysmic downturn in the US, the Administration decided to push forward with an agenda developed in the early 2000's. The results are not shocking.

The current tact of the Administration is naked populism, not the President's long suit. How long that strategy will be promoted and to what effect are unclear. What is readily apparent is that the Democrats are lost and the Republicans have no plan. As one person put it earlier this week, I have never been so disappointed in our politicians in my lifetime. Our politicians are incredibly out of touch with what's going on in this country. Money was spent recklessly, regulation was ignored and promises were made under the flawed notion that basic economics did not apply. I am beyond disgust.