Archive for the ‘Business & Economics’ Category


Tracking Obama’s Developments

Oct 12, 2009 Author: LC | Filed under: Business & Economics, Politics

I am a big fan of NPR mainly because of the unbiased news coverage across the US and around the world. My favorite part of the site is the Obama Tracker widget. This widget tracks all of the policies made by Obama and classifies them as domestic, foreign or economic.

I just find it interesting that the push for economic policies were at its heaviest during his first trimester in office… since then, there has been very little done. To date, only 47 economic policies when there have been 94 domestic and 81 foreign policies… Our nation (a capitalist one obviously) has a foundation built on money. Our success and failure as a nation are directly linked to that foundation. Wouldn’t it make sense to rebuild a foundation that is falling apart before the things we’ve established on that foundation will fall apart as well? If we thrive as a nation, we can better implement domestic and foreign policies with the money we have.

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It’s crazy… read here.

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via Marginal Revolution by Tyler Cowen on 1/11/09

1. We have zombie banks.

2. There is considerable regulatory uncertainty in banking and finance.

3. There is a negative wealth effect from lower home and asset prices.

4. There is a big sectoral shift out of real estate, luxury goods, and debt-financed consumption.

5. Some of the automakers are finally meeting their end, or would meet their end without government aid.

6. Fear and uncertainty are high, in part because they should be high and in part because Bush and Paulson spooked everyone.

7. International factors are strongly negative.

8. There is a decline in aggregate demand, resulting from some mix of 1-7.

I have two simple points,  First, a large fiscal stimulus addresses factor #8 but fares poorly in alleviating the other problems.  Of course it may give a band-aid for #5 or #6 and you can tell other stories but we are in a multi-factor depression.

Second, forecasting will prove very difficult.  These factors interacted with each other in a unique manner on the way down and they may well interact in an unpredictable manner on the way back up, whenever that comes.  Just for a start, who has a good model of #1, #2, or #6?  Right now we’re seeing a lot of good faith efforts to develop forecasts, but I say don’t believe any of them, whether they support your point of view or not.

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I was concerned that the most historical date of my lifetime would be Sept. 11, 2001 – the date that World changed: mass paranoia regarding safety, thousands of Americans voting to lose rights for the sake of safety, the legalization of racial profiling, a nation quickly reverting back to its discriminatory ways.

Then Nov. 4th, 2008 – Dem. Illinois Senator, Barack Obama, became 44th President United States of America. He is the first half African-American president of our nation. Tomorrow, he will be prepping his move to the Oval Office, and for the next four years, our country will see if he will actually live up to the many promises he made. Will he bring the change we can believe in?

Will Pres. Obama really close special interest corporate loopholes?

Cut Pork Barrel Spending: Obama introduced and passed bipartisan legislation that would require more disclosure and transparency for special-interest earmarks. Obama and Biden believe that spending that cannot withstand public scrutiny cannot be justified. Obama and Biden will slash earmarks to no greater than year 1994 levels and ensure all spending decisions are open to the public.”

Barack Obama on Fiscal Issues

Why do I pose this question? It’s pretty apparent for Obama to raise the money that he raised is well over the soft money limitations set in place during the Clinton Administration (If you don’t know what I’m talking about, just google soft money, Clinton). Well, of the $600 million plus dollars Obama campaigners managed to raise, only 25 percent of those donations were under $200 – as reported by the Washington Post.

The rest of his donations did in fact come from large corporations and special interest groups. I know many of you are wondering, How can that be true? Obama said he didn’t accept any monies from such groups. The loophole lies in the McCain-Feingold Act. Soft money donations exceeding $2300 can be accepted as long as the monies are shared between the candidate, the party committee and the state committee. If that will actually happen, you can never tell until the IRS does an audit. Read more about this here. What is even more unsettling is that McCain’s contributions are all being reviewed, but none of Obama’s.

Don’t get me wrong, I believe Obama has the great potential as the President of the United States – but I don’t believe he will be as bi-partisan as he said he will be. Politicians will always play the political field with special interest groups.

Mr. President, I hope you don’t disappoint.

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