Obama has the task of clarifying his campaign rhetoric that has investors staying on the sidelines. I am referring to the capital gains tax hikes that could be moderate or significant. Most economists are aware that the sharp recession of 1930-31 became a depression when Hoover pushed through a large tax hike on the wealthy ($100,000 income in 1931 dollars). Obama is certainly not stupid and knows this yet he did not answer the specific question with regards to tax hikes at the press conference on Friday.
We all want Obama to succeed. For many their jobs depend on it. If not you will be likely looking at saying President-elect Barbie in 2012.
Investors are staying on the sidelines because they lost so much the economy stinks and over the past 6 months and rightly so they are frazzled and have little to invest. Seems a bit premature to start massaging blame onto a man that won't be president for two more months when cleary it is a pre-existing condition.
It is a bogus charge that largely investors base their investments on political speculation. Otherwise no one would ever have invested anything. Under this logic, then the economy and investment should have been booming under Bush with the stability of his tax system. It wasn't. It has been a consumption based economy not an investment based one.
This goes directly to your point, he has clarified his campaign position in a crystal clear fashion. It seemed clear to us with ears that during the campaign Obama stated that his tax policies would depend on the situation and that they may be delayed. Therefore, once he is president he will assess the situation. Can't be more clear than that.
You can't make assumptions ahead of time when you are the president. That is what the last president did and proved for poor policy.
This is what people meant when they talk about Obama's good judgement.
He will deal with reality in real time, not go off half cocked and let's say declare an end to military operations in a war years before they can even weakly be argued to be true.:doh:
Should Obama 5 days after winning an election with no treasury secretary and two months away from being president make some ridiculous knee jerk policy to pacify your red herring argument, that would be completely non-binding anyway?
There are multiple reasons that we are in trouble right now and back in the great depression, despite you and other conservatives, one thing was a huge part of each equation and that was a significant free market failure. You can try and spin it and for sure somethings done to try and recover did make it worse but anyone with half a brain can see right through that rhetoric that that was the catalyst. It was the effect and not the cause.
Even anyone withe most basic understanding of history and 1st grade math skills will note that the market collapsed in 29 and you are trying to blame the great depression on a misquided effort to lessen the pain. Bull.
You are panicking and that will lead to out of the frying pan and into the fire. Slow deliberate contemplation is what is needed, a steady hand.
The market needs stability and calmness and that is what Obama's is right now. That is the best way to foster investment.
Now, Obama's folks and the leaders of the big three and the UAW are scheduled to meet, can we at least give them a couple months to see if they can comeup with a plan. Before demanding instant reckless action.
