Thursday, April 23, 2009

Robert Reich hands out report cards

Robert Reich gave his 100-day report card on the Obama Administration two days ago, and I have to say I couldn't agree more. He gave an A on the budget, a B on the stimulus package, and an F on the financial bailouts. He read my mind exactly.

So far, one of the better administrations, but when it comes to dealing with the financial system it has been one of the worst. It is still far better than the opposition would have been, though. Not to go overboard broadcasting my politics, but from an economic perspective I believe McCain/Pailn would have implemented a 20% tax cut and then tried to cut $10 million of pork barrel spending and called it a day. There would be no stimulus spending, only tax cuts for businesses which aren't making profits to pay taxes on anyway. The financial system would have frozen in its tracks. When Lehman collapsed, we came within 4-24 hours of systemic collapse (according to people far smarter than me whom I trust a great deal). This would have easily happened again. So I'm pleased we prevented McCain/Palin from running the bailout, but I'm not at all pleased with how the Obama Administration has conducted itself here.

They still have time to save themselves here by responding to the banks tress tests in the proper way. They could be building the case for a few nationalizations/liquidations, but I won't hold my breath.

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