Friday, February 13, 2009

NRO: 3 Weeks in, Obama Already Needs Course Correction

The editors of National Review today observed if one were to judge by the market alone, one would be forced to conclude that President Obama’s economic team has gotten off to a wretched start.

Stocks have tumbled throughout the week, plunging most precipitously on Tuesday as Treasury Secretary Timothy Geithner announced his plan to save the banking system -- or, rather, announced that he has a plan, but declined to describe it in any detail. Stock have plummeted 2000 points since election day!

We don’t need to read the market tea leaves to know that Obama is on the wrong track -- a simple analysis of his actions this week yields the same conclusion.

On Tuesday morning, Geithner unveiled his much-anticipated plan to restore stability to the nation’s troubled banking system. Geithner was mum.

On Wednesday, the House Financial Services Committee hauled in the CEOs of the banks that cashed in on the $700 billion bailout and excoriated them for not lending the money quickly enough for congressional tastes. The elephant in the room was the fact that several of these banks are already insolvent -- they’re dead, but they don’t know it yet. The committee demonstrated that its priorities are exactly backwards.

The market’s verdict seems to be in: It is a vote of no-confidence in Obama’s economic agenda.

Read it.

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