« Surprise! GOP Cut out of Stimulus Conference Negotiations | Main | "Dirty Bomb" Components, Manuals Found in Home of Slain Man With Purported White Supremacist Views »
February 11, 2009

Why Did the Market Tank? Blame Obama

Interesting analysis here: The problem (as far as Geithner's plan) wasn't just Geithner's plan. It was that Obama had greatly oversold it the day before as super-duper-amazing.

Expectations were riding very high that Treasury Secretary Geithner would pull a rabbit out of a hat, in a speech billed as an announcement of bold, new plans to stabilize the banks. Obama himself, the night before in his press conference, assured us in the manner of a glib salesman that Geithner’s speech would be most impressive.

You can see how impressive from a chart of the stock market....

So if Obama’s team really believe that this problem is a simple matter of building enough confidence among the world’s investors to come back out and play, they’re very wrong. And this is why I think Geithner looked and sounded so uncomfortable yesterday. He actually knows quite a bit about how banks and markets operate. And he knew he’d been sent out to sell a case for recovery that was about as compelling as when President Gerald Ford told us all to fight inflation by wearing WIN buttons.

I really don’t know why the Obama people chose to set up this speech as an oracular pronouncement that would bring confidence back to the markets, and I don’t know why the political team (including David Axelrod) got mixed up in helping Geithner decide what to say. Geithner has the experience and the intellectual equipment to do his job. What on earth was Axelrod doing in the room?

This says a great deal about the new President. He’s evidently seeing the twin crises as a problem of confidence that he can solve by waving the right magic wands. Obama has invested a very great deal in the story that he and his people are far ahead of George Bush, Henry Paulson and the now-hated TARP rescue plan. And not only Obama but also Congress, with Barney Frank having said on multiple occasions that the Democratic version of TARP would be very different and would work much better.

That does say a great deal about Obama, and it's not good. He simultaneously underestimates the difficulty of the problem, under-understands the problem in the first place, and overestimates his ability to work magic just by speaking his awesome magic words.

Faith-based presidency, anyone? George W. Bush may have had a misplaced confidence, but at least he drew that confidence from God Himself, not from Himself Himself.

digg this
posted by Ace at 02:30 PM

| Access Comments

Recent Comments
redridinghood: "Definitely would not hang. ..."

Captain Obvious, of the sloop John B.: "Noah was too drunk to hide his junk. No incest. ..."

Skip: "The two sons produced were Moab and Ammon who beca ..."

Wolfus Aurelius [/i] [/b]: "[i]Are there names for his daughters or just daugh ..."

eleven: "Have another bowl of wine, Pops. ..."

Insomniac - Ex Cineribus Resurgo: "65 I thought it was Noah who got drunk and had his ..."

Bruce: "50 comments in, and no one has said "Boobs!" yet? ..."

Boots: "And of course I'm late to the party again! Nood ..."

ghost of hallelujah: "Say what you will about Lot, but the man drank his ..."

Wolfus Aurelius [/i] [/b]: "Wait. Each daughter got Lot drunk, and then got p ..."

m: ">>>He was not aware of it when she lay down or whe ..."

Boswell : ">>my lowlife Brooklyn block as ni--er chasers. ..."

Recent Entries

Polls! Polls! Polls!
Frequently Asked Questions
The (Almost) Complete Paul Anka Integrity Kick
Top Top Tens
Greatest Hitjobs

The Ace of Spades HQ Sex-for-Money Skankathon
A D&D Guide to the Democratic Candidates
Margaret Cho: Just Not Funny
More Margaret Cho Abuse
Margaret Cho: Still Not Funny
Iraqi Prisoner Claims He Was Raped... By Woman
Wonkette Announces "Morning Zoo" Format
John Kerry's "Plan" Causes Surrender of Moqtada al-Sadr's Militia
World Muslim Leaders Apologize for Nick Berg's Beheading
Michael Moore Goes on Lunchtime Manhattan Death-Spree
Milestone: Oliver Willis Posts 400th "Fake News Article" Referencing Britney Spears
Liberal Economists Rue a "New Decade of Greed"
Artificial Insouciance: Maureen Dowd's Word Processor Revolts Against Her Numbing Imbecility
Intelligence Officials Eye Blogs for Tips
They Done Found Us Out, Cletus: Intrepid Internet Detective Figures Out Our Master Plan
Shock: Josh Marshall Almost Mentions Sarin Discovery in Iraq
Leather-Clad Biker Freaks Terrorize Australian Town
When Clinton Was President, Torture Was Cool
What Wonkette Means When She Explains What Tina Brown Means
Wonkette's Stand-Up Act
Wankette HQ Gay-Rumors Du Jour
Here's What's Bugging Me: Goose and Slider
My Own Micah Wright Style Confession of Dishonesty
Outraged "Conservatives" React to the FMA
An On-Line Impression of Dennis Miller Having Sex with a Kodiak Bear
The Story the Rightwing Media Refuses to Report!
Our Lunch with David "Glengarry Glen Ross" Mamet
The House of Love: Paul Krugman
A Michael Moore Mystery (TM)
The Dowd-O-Matic!
Liberal Consistency and Other Myths
Kepler's Laws of Liberal Media Bias
John Kerry-- The Splunge! Candidate
"Divisive" Politics & "Attacks on Patriotism" (very long)
The Donkey ("The Raven" parody)
Powered by
Movable Type 2.64