Tuesday, November 25, 2008
Obama won't save us...his glow is already fading
Since election day each time Obama spoke the markets responded positively. That was a welcome contrast to the devastatingly negative effects seen after any Hank Paulson or President Bush comments.
However, Obama's press conference today was met with market selling for the first time and probably for good reason. Rather than aggressively reiterating the need for a big stimulus without any conditions or without any regard over deficits, Obama sounded a more cautious tone. He talked about crafting an "efficient and responsible" budget. (Code words for fiscal responsibility.)
He spoke about how his OMB appointee, Peter Orszag and his debuty, Rob Nabors, would be "charged with going through the federal budget “page by page, line by line” to develop a budget that would eliminate waste and increase government efficiency."
Obama also said, “If we are going to make the investments we need, we also have to be willing to shed the spending that we don't need.”
Again, the thinking there seems to suggest that he believes the government is somehow constrained in what it can do. Only by "scouring the budget, line by line," is the way he believes he can come up with the money.
Obama's team is filled with deficit hawks, suggesting that bold and aggressive measures to revive demand will fall far short.