Excellent Op-Ed in the WSJ. Here are the key paragraphs:
The Obama Economy
As the Dow keeps dropping, the President is running out of people to blame.
The market has notably plunged since Mr. Obama introduced his budget last week, and that should be no surprise. The document was a declaration of hostility toward capitalists across the economy. Health-care stocks have dived on fears of new government mandates and price controls. Private lenders to students have been told they're no longer wanted. Anyone who uses carbon energy has been warned to expect a huge tax increase from cap and trade. And every risk-taker and investor now knows that another tax increase will slam the economy in 2011, unless Mr. Obama lets Speaker Nancy Pelosi impose one even earlier.
Meanwhile, Congress demands more bank lending even as it assails lenders and threatens to let judges rewrite mortgage contracts. The powers in Congress -- unrebuked by Mr. Obama -- are ridiculing and punishing the very capitalists who are essential to a sustainable recovery. The result has been a capital strike, and the return of the fear from last year that we could face a far deeper downturn. This is no way to nurture a wounded economy back to health.
I predicted to Brian a few weeks ago that Dow 6,000 was a reality, given the fact that every single action taken by the government (including those by Bush/Paulson in their last few months) have been exactly the opposite of what should be done. Obama has only increased the mismanagement of this economy.
Brian reassured me that people would riot before things got too bad... and then quickly realized that he needed to visit the gun store.
This isn't sustainable.
ARC: St Wendeler