In this podcast, Bruce, Bryan, Michael and Dale talk about the week’s events, and the indications the provide into the President’s apparent intellectual incuriosity.
The direct link to the podcast can be found here.
The intro and outro music is Vena Cava by 50 Foot Wave, and is available for free download here.
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Heh … I love it when this sort of thing happens. Unfortunately it doesn’t happen often enough.
The saccharine conventions of showbusiness were thrown out of the window last week, when the Hollywood actress Maria Conchita Alonso was collared by paparazzi and asked if she was pleased about her former co-star Sean Penn’s recent Oscar victory.
“He’s an amazing actor. I can’t take that away from him,” she said of Penn, who worked with her on the 1988 cop film Colors. “It’s just that he has no clue at all what’s going on in Venezuela. He’s been praising Hugo Chavez, who is a dictator and a killer. He should shut up about what he doesn’t know.” Alonso, who was raised in Venezuela, was apparently upset by a glowing article that Penn had written for The Nation magazine about her homeland’s charismatic but increasingly dictatorial left-wing President.
Of course Penn’s not the only one from Hollywood in the thrall of Chavez:
Other Hollywood liberals face public criticism, most notably Oliver Stone, currently filming an adulatory authorised biopic of Mr Chavez. Stone could be joined in the pillory by Danny Glover, who was given $18m by Mr Chavez in 2006 to make a left-leaning film about Haiti’s 19th-century leader, Toussaint Louverture. Harry Belafonte sparked outrage two years ago when he appeared on a platform with Mr Chavez to call George Bush “the greatest terrorist in the world”.
The term “useful idiots” describes them well.
For some, bravery and courage is rooted so deep, the heroic becomes almost common place. Sergeant First Class Frederick Rowell exemplifies this fine character trait. SFC Rowell, a US Army infantryman, was deployed to Iraq for two tours, both of which took place during some of the most pivotal moments of that ongoing campaign, and both times he distinguished himself with valor and heroism.
SGT Rowell was not originally scheduled to deploy to Iraq with a combat unit. In fact, he was an instructor at Ft. Polk. Rowell had joined the army at age 17, and had served 6 years stateside duty until then. But when a call came down for volunteers to join an infantry unit deploying to Iraq, without consulting anyone he stepped forward. 48 hours later he had said good bye to his wife and family and was on an airplane bound for Kuwait.
In the thunder run that was the invasion of Iraq, then-Sergeant Rowell was involved in the critical fight for the Baghdad International Airport. April 4, 2003 was the first great test of this young non-commissioned officer’s dedication to his fellow soldiers. Remember, he’s just joined them and hasn’t really trained with them extensively to this point. But as you’ll see he rose to the occasion.
After dismounting his Bradley fighting vehicle, Rowell’s unit came under heavy automatic and rocket-propelled grenade fire. After assessing the severity of the fire, Rowell covered his comrades as they fell back to their Bradley. During this withdrawal phase, he noticed another fire team was pinned down far from cover and taking heavy fire. For those of you unfamiliar with the structure of an infantry platoon, two fire teams make up a squad of about 10 infantrymen. 4 squads make up a platoon. So a fire team is about 5 soldiers led by a sergeant.
Once his own fire team was in the relative safety of his Bradley fighting vehicle, Rowell did not hesitate to act to aid the pinned down fire team.
Charging across about 300 meters of open terrain under fire from Iraqi forces, Rowell arrived at the location of the isolated fire team to find it leaderless and with a severely wounded soldier. Rowell took charge and sprang into action. He gave the team direction, telling them where to concentrate their fire and deploying them to maximize it. After he had them laying down cover fire he began applying first aid to the wounded soldier. As the enemy attack became more focused and more intense, Rowell threw himself on top of the soldier, using his own body as a shield while another Bradley fighting vehicle attempted to close in on their beleaguered position.
“I had to lay on him. He was in shock, moving his legs around and the rounds were coming in everywhere. I was afraid he was going to get hit again. So, I laid on top of him. About this time I got shot in the plates, in my Interceptor Body Armor. I got shot there.”
As he was covering the injured soldier with his own body, Rowell took a direct hit from an AK-47 round in his back. The good news is, it was stopped by his body armor. But it was a round that would have almost certainly killed the soldier under Rowell who had been stripped of his protective vest in order to treat his wounds. With the evacuation vehicle blocked from coming any closer, Rowell hoisted the wounded soldier onto his back and ran some 100 meters to that vehicle in order to evacuate the severely wounded soldier. His action was credited with saving the soldier’s life. He then lead the withdrawal of the rest of the fire team to the safety of US lines.
4 years later, now Staff Sergeant Rowell was again deployed to Iraq, as a part of the Surge.
On September 11th of 2007, Rowell, now squad leader, was on a scouting mission to observe insurgent activity in a volatile part of Baghdad. The idea, of course, was to get soldiers into areas they’d never previously been in to begin to root out the terrorists and protect the population.
His squad was split into two observation posts in two buildings. They were there to observe activity on a road on which IEDs were frequently planted. As Rowell said, it was a ‘real bad’ part of Baghdad. He and his soldiers were located on the 2nd floor of an abandoned house when they observed some activity during the night.
An enemy scout was snooping around the house in which they were located. He tried to get into the door then backed off and disappeared before they could do anything. Rowell hoped they hadn’t been compromised, but in a few minutes 3 of the enemy rushed across the area near the house and up to it, then withdrew. What the soldiers didn’t know is the enemy had planted a 2L soda bottle loaded with homemade explosives and a pressure plate near the door. The terrorists then opened fire from three different directions. SSG Rowell contacted his platoon headquarters and reported that he was under fire and his position had been compromised. His platoon leader ordered them to withdraw to his position.
As enemy fire poured in on them, Rowell planned to move his squad to the other observation post. He planned his route and the order in which they’d move out of the building, and how they’d support each other as they moved. He lined the men of his squad up in the order they’d go and then gave them the order to go. Rowell was second in line.
But the first soldier down the stairs was severely injured by the IED the terrorists had planted earlier. As Rowell stepped out of the door, the blast blew Rowell off the second floor landing and knocked him unconscious. He lay there for 4 or 5 minutes before regaining consciousness as the battle raged around him. His squad had pulled back into the house.
Rowell regained his focus – despite being later diagnosed with a traumatic brain injury – and looked around to assess the situation. He said “I saw a body out there and I saw it moving.” He rose to his feet, running to the aid of his comrade, Spc Jonathan Prusner. Prusner’s left leg had been blown off below the knee. Under heavy fire, Rowell pulled Prusner back into the building, treated him and defended him from the numerous attackers. In the meantime his platoon leader had requested the quick reaction force, a Stryker platoon, to move to the ambush location to rescue the squad.
On other thing I should add – SSG Rowell was completely deaf from the IED explosion at this time. He couldn’t hear a thing. And although his hearing would return at a later date, he was unable to communicate by radio at this time. So he had only one option left to him when it became necessary to direct the fire of the quick reaction force upon their arrival.
He ran back out into the fire storm and physically directed the reinforcements fire onto the enemy positions. He then helped evacuate Spc. Prusner into one of the Strykers. Finally on the way out of the kill-zone, Rowell manned the roof gun on the Stryker as they evacuated the injured to a combat hospital.
In these two events, Rowell’s heroism was undeniable. He is the epitome of a combat infantryman and non-commissioned officer. By ignoring his own safety and using his body as a shield to protect a wounded soldier in 2003, he was awarded the Silver Star. For coming to the aid of Spc. Prusner and displaying steadfast courage under harrowing fire in 2007, he earned the Bronze Star Medal with the “V” device for Valor.
Recently promoted to Sergeant First Class, Rowell’s reaction is precisely what you would expect – “I was only doing my job”, he says. He has become very good friends with the young man that he saved, but who lost his leg. That’s because they’re both recovering together at the Warrior Transition Center at Walter Reed Medical Center. The bond they formed in combat has helped them both in their recovery process. And SFC Rowell also credits the rock steady support he’s received from his wife and family. Said Rowell:
“My wife has been there to help me out. Been very supportive. All around I think the greatest Army wife out there ever.”
What is it SFC Rowell wants to do as soon as he’s recovered from his injuries? He says, “I want to get back to soldiers”.
And the soldiers who end up with SFC Rowell as their platoon sergeant will be among the most fortunate infantrymen in the Army. And that is why SFC Frederick Rowell, United States Army infantryman, and awarded the Silver Star, Bronze Star with Valor device and Purple Heart during two deployments in support of Operation Iraqi Freedom, is someone you should know.
Or, perhaps, “all of the above”. From the UK Telegraph:
Sources close to the White House say Mr Obama and his staff have been “overwhelmed” by the economic meltdown and have voiced concerns that the new president is not getting enough rest.
British officials, meanwhile, admit that the White House and US State Department staff were utterly bemused by complaints that the Prime Minister should have been granted full-blown press conference and a formal dinner, as has been customary. They concede that Obama aides seemed unfamiliar with the expectations that surround a major visit by a British prime minister.
But Washington figures with access to Mr Obama’s inner circle explained the slight by saying that those high up in the administration have had little time to deal with international matters, let alone the diplomatic niceties of the special relationship.
Allies of Mr Obama say his weary appearance in the Oval Office with Mr Brown illustrates the strain he is now under, and the president’s surprise at the sheer volume of business that crosses his desk.
A well-connected Washington figure, who is close to members of Mr Obama’s inner circle, expressed concern that Mr Obama had failed so far to “even fake an interest in foreign policy”.
And here we were led to believe Mr. Obama was this cool, multitasker under full control and able to handle everything the job entailed.
That’s what we were led to believe.
Some of us, however, said that of all the jobs on the planet this wasn’t the one for OJT. This isn’t a job where one aspect of the duties can be ignored to concentrate on others.
Guess which group looks more prescient at the moment?
Apparently Timothy Geithner isn’t the financial “rock star” he was touted to be if his handling of the Asian crisis 10 years ago is any indication.
While Obama may have “inherited” the financial problems, the bear market is all his.
Speaking of lay-offs, this isn’t going to make our jet jocks feel very secure.
The new slogan of the Democrats – never let a good crisis go to waste. So this is a “good” crisis?
Take a look at this page and tell me where are the promised tax money from rich folks is going to come from.
If you don’t believe government is contemplating some pretty heavy care rationing when and if they get control, read this little beauty carefully.
Even George McGovern finds the pending card check legislation desired by unions to be “fundamentally wrong” and undemocratic.
Grey wolves “delisted” from endangered species list.
No time for Gordon Brown, but plenty of time for Brad Pitt. Wonder if Pitt got a 25 volume DVD set too?
Is Obama preparing the way for a massive defense spending cut?
Even Paul Krugman is getting a little antsy about the apparent lack of focus of the Obama administration on the financial crisis.
It appears Hugo Chavez recognizes a kindred spirit when he sees one.
The Senate is one vote short of passing the omnibus spending bill with 9,000 earmarks. All I wonder is which Republican will cave first?
I think what is happening at the Seattle Post-Intelligencer and other newspapers is an indication of where that industry is headed:
The Seattle Post-Intelligencer reports that its owner, Hearst Corp., has made offers to some staffers to participate in an online-only version of the newspaper.
The paper says an unspecified number of the P-I’s roughly 180 employees received “provisional offers” Wednesday and Thursday to work for the online venture, if the Web site is approved by Hearst’s senior management.
Hearst announced in January it would put the P-I up for sale and either close the paper or go to an online-only publication if it couldn’t find a buyer by March 10. There has been no word on a possible buyer.
These are very tough times for the print media. And, at least among the big dailies, they’re burning through money like GM with no bailout in sight. They’re stuck with a business model that no longer works. And it has happened in a very short time, relatively speaking. The problem is, those who run the business have never faced times like this. Already in trouble before the financial crisis, the trouble has now been accelerated beyond measure.
I’ve worked in and around the industry for almost 25 years. Newspapers had a tendency to make money despite themselves sometimes, and were always a profitable business. In effect, they held a pretty solid position as being one of the only outlets for news in a city, region or state. Sure television had some effect, but not at all the effect many in the business worried about. Detailed stories, not 30 second to a minute coverage found on TV, could only be found in newspapers.
Another critical aspect of newspaper revenue was classified ads. They were the go-to place for jobs, cars, real-estate, etc. It was that revenue and advertising revenue which kept them profitable. Subscriptions never were their primary source of revenue.
Then Al Gore invented the internet. And newspaper big-wigs worried about the impact. The impact was subtle at first. But as the breadth and depth of the ‘net grew, newspapers finally figured out the ‘net was a serious threat to them. The problem was they believed they were in the printing business instead of the news delivery business. So we saw these attempts to jazz up newspapers with more color and snappier features. But none of that really matters when the news that’s delivered is a day old and available when it happens on line. Stale news does not sell well.
Then production costs started to go up. Newsprint has gone through the roof. Aluminum costs (plates) have risen dramatically. All the while, ad revenues have steadily dribbled away as advertisers found newer, cheaper and vastly wider coverage on-line. Classified advertising began slowing as eBay and Craig’s List began siphoning away potential customers with their wider reach. Firms tying to fill jobs went on-line as well.
Page count dropped. Subscriptions no longer even covered the cost of the newsprint each edition required. Web widths were cut. Every economy that can be thought of was enacted. Production facilities have been shut down and consolidated. Automation has been used to replace headcount. Vendors have been squeezed for every penny that can be squeezed. But formerly profitable newspaper groups are now hemorrhaging money and frankly they don’t know how to stop it.
That’s not to say all newspapers are in that sort of trouble. Interestingly the small town newspapers seem to be doing okay. They’re not raking in the money they used too, for sure. But they seem to be surviving. One of the reasons is they are in a unique position which large town and city newspapers don’t enjoy anymore. In many cases they are the sole source of news for that community. Some have local TV stations that cover news as well, but the in-depth coverage over many weeks that local stories sometimes require can only be found in the paper. Additionally many of these small town papers have a production facility that is bare bones but has been printing other business for years – neighboring weekly papers, commercial work, etc. So their production facility is at least paying for itself. And while they have an on-line presence, it is more of a business an archive site. They don’t deal much in national and international news. They’re focused almost exclusively on the community they serve and the news it generates. If you want national or international news, go to CNN – they know you do that anyway.
With the closing of the Rocky Mountain News, the possible closure of the San Francisco Chronicle and the Seattle P-I’s decision to go on-line only, you can see the larger newspapers are still struggling to find a business model that works. I’m of the opinion, and have been for a while, that the small town model, adapted for the larger communities, is the way to go – with an tight focus on covering the community they serve, an on-line presence that adds instead of detracting from the print edition and a plan for the future which takes the operation on-line through devices like the Kindle 2, provided as a part of the subcription for a certain subscription length.
Of course that means that the production end of it, which has been my bread-and-butter for many, many years, will go the route of the dinosaurs, at least among the larger newspapers. But I think that is the future. Small town papers will hold out for a while longer and continue to print, but the economies of scale won’t be there which enable paper companies to offer low prices on newsprint. My guess is, unless they have a tremendous base of commercial printing (other than newspaper printing), they’ll eventually come to a point where print production is cost prohibitive as well.
All of this, of course, means a much leaner staff for future newspapers. It will also mean a different way of billing -for subscriptions, advertising, etc. Single issue billing, subscription billing, even particular articles can be billed. And without the cost of production factored in, the pricing should be reasonable. In order for that to be attractive to potential buyers, the papers are going to have to deliver and necessary and attractive product that news consumers want.
That is the problem they are presently wrestling with. What is that product and how do we produce it and get paid to produce it?
I have no idea how this will shake out, but unlike many, I certainly don’t want to see newspapers go away. I think they’re a critical part of our nation’s democratic voice. But they are going to have to change and change radically to survive. It is going to be interesting to watch this over the next few years as the newspaper business goes through what the fed refuses to let the auto industry go through. My guess is, after all the bankruptcies, consolidations and mergers take place, a leaner, more focused and profitable business model will emerge. Whether they’ll be called “newspapers” is anyone’s guess, but they’ll still be with us in some form or fashion.
Barney Frank has gotten very full of himself. So full, in fact, that his memory isn’t working as well as it probably should:
House Financial Services Chairman Barney Frank (D-Mass.) is pressing state and federal authorities to seek criminal and civil penalties on financial actors that helped cause the current crisis.
“Rules don’t work if people have no fear of them,” Frank said at a press conference Thursday.
He announced a hearing March 20 with Attorney General Eric Holder, bank regulators and the Securities and Exchange Commission as witnesses to discover what their plans are to prosecute irresponsible and in some cases criminal behaviors.
I wonder if he’d include this guy:
A September report from the Business & Media Institute suggests one possible target for investigation: a senior member of the House Banking Committee. This congressman is “a recipient of more than $40,000 in campaign donations from Fannie since 1989″ and “was once romantically involved with a Fannie Mae executive.” The same congressman “was and remains a stalwart defender of Fannie Mae.”
In case you’re not up to speed, that “senior member” mentioned is House Financial Services Chairman Barney Frank (D-Mass.).
Some specifics about the record job losses:
Hiring last month in goods-producing industries fell by 276,000. Within this group, manufacturing firms cut 168,000 jobs bringing the total since the recession began to 1.3 million.
Construction employment was down 104,000 last month. The unemployment rate in that sector is now 21.4%, almost double where it was this time last year.
Service-sector employment tumbled 375,000. Business and professional services companies shed 180,000 jobs, the fourth-straight six-figure loss, and financial-sector payrolls were down 44,000.
Retail trade cut almost 40,000 jobs, while leisure and hospitality businesses shed 33,000 as households curtail nonessential spending.
Temporary employment, a leading indicator of future job prospects, fell by almost 80,000.
So there, in a nutshell, is the status of the productive sector of the economy – the sector that produces wealth, jobs and growth. The sector that should be the focus of any recovery plans and stimulus money.
Instead, what is the President talking about in Ohio, as he panders in the buckle of the rust belt (via email transcript)?
Today I’m pleased to announce that Attorney General Eric Holder and the Department of Justice are making available $2 billion in justice assistance grants from the recovery act. (Applause.) That’s funding that will help communities throughout America keep their neighborhoods safer, with more cops, more prosecutors, more probation officers, more radios and equipment, more help for crime victims, and more crime prevention programs for youth.
Cities and states can apply for these funds right away, and as soon as those applications are received, the Justice Department will start getting the money out the door within 15 days. In Savannah, Georgia, the police department would use this funding to hire more crime and intelligence analysts and put more cops on the beat protecting our schools. In Long Beach, California, it will be able to help fund 17,000 hours of overtime for law enforcement officials who are needed in high-crime areas.
West Haven, Connecticut, will be able to restore crime prevention programs that were cut even though they improved the quality of life in the city’s most troubled neighborhoods. And the state of Iowa will be able to rehire drug enforcement officers and restart drug prevention programs that have been critical in fighting the crime and violence that plagues too many cities and too many towns.
So the list goes on and on. From Maine to San Francisco, from Colorado to New Jersey, these grants will put Americans to work doing the work necessary to keep America safe. They’ll be directed only towards worthy programs that have been carefully planned and proven to work. And Vice President Biden and I will be holding every state and community accountable for the tax dollars they spend.
More cops, more prosecutors, more parole officers.
Private sector jobs? Nada.
Now I understand we need all of those people he talks about. But they won’t help one bit in creating new wealth, new jobs or new opportunities for both, will they? They’re a number Obama can point too when he tries to sell is jobs “saved or created” nonsense in a few years. But as far as a stimulus to the economy – huh uh. What they are, however, are precisely what is expected from a big government liberal – government jobs.
As the WSJ further informs us after giving us the bad news about the productive sector of the economy above, “the government added 9,000 jobs.”
The International Criminal Court (ICC) has no real power of enforcement. It is one of those bodies that the “one world” crowd managed to get formed and funded in hope of creating the penultimate judicial body that can adjudicate criminal complaints against political and military leaders anywhere in the world. It depends on voluntary compliance with its indictments and voluntary submission to its rule. As you might imagine, that’s not as forthcoming as its planners thought it might be – especially among the nations most in need of straightening up. Such as Sudan:
blockquote>Thousands of people protested in Khartoum on Friday after preachers condemned an International Criminal Court arrest warrant for Sudan’s president on charges of war crimes in Darfur.
It was the third day of demonstrations after the Hague-based court announced it was indicting President Omar Hassan al-Bashir on seven counts of war crimes and crimes against humanity, including murder, rape and torture.
While everyone agrees that what is happening in Darfur is a crime against humanity, it is a crime that the world has allowed to continue for almost 20 years. So one has to wonder, other than a bit of moral preening by the ICC, what utility issuing an arrest warrant for the head of state of Sudan might have. Will it actually facilitate his arrest and end the problem in Darfur? Will it improve the conditions and security for those in danger in Darfur? After all, if it is the conditions and the plight of those in Darfur that the ICC is using as the basis of its criminal complaint, wouldn’t you hope that such a move would improve that situation rather than worsen it?
As it turns out, it does “none of the above”. The issuance of the arrest warrant by the ICC has instead caused all the aid agencies working to save the refugees to be thrown out of the region on suspicion they’re passing evidence of crimes on to the ICC.
Of the 76 NGOs in Darfur with which the U.N. is working, the 13 that have been expelled account for half the aid that is distributed in the region, said Elisabeth Byrs, spokeswoman for the U.N. Office for the Coordination of Humanitarian Affairs.
Their departure would leave 1.1 million people without food, 1.5 million without medical care and more than one million without drinking water, she told the briefing.
“It will be very, very challenging for both the remaining humanitarian organizations and for the government of Sudan to fill this gap,” she said.
Of course the argument might be “we should confront evil where ever we find it” and I don’t disagree. But issuing a toothless arrest warrant that only agitates the person named to the point that over a million people are placed in peril doesn’t exactly live up to the word “confront” in my book. It is a moral “feel good” activity which may spur an immoral reaction beyond anyone’s control. And that seems to be the case here.
It is one thing to issue the sort of warrant the ICC has issued and then take the action necessary to serve and enforce it. But in the absence of that, what is the utility of issuing such a warrant without such an enforcement mechanism, especially given the range of possible negative reactions and outcomes? Whatever happens now to those million people at risk in Darfur, as a result of the ejection of the aid agencies so key to their survival, rests squarely in the lap of the ICC. I’m not arguing that al-Bashir isn’t a murdering criminal or that the world shouldn’t do what is necessary to stop his crimes against the people in Darfur. But what shouldn’t be done is hand him a reason to further endanger those people by issuing unenforceable warrants that make the rest of the world feel morally superior but actually worsens the threat against those who can’t defend themselves.
David Brooks, 3 days after a semi-courageous, “what-the-heck-is-going-on” column, received calls from the senior staff at the White House and quietly got back in line:
In the first place, they do not see themselves as a group of liberal crusaders. They see themselves as pragmatists who inherited a government and an economy that have been thrown out of whack. They’re not engaged in an ideological project to overturn the Reagan Revolution, a fight that was over long ago. They’re trying to restore balance: nurture an economy so that productivity gains are shared by the middle class and correct the irresponsible habits that developed during the Bush era.
The budget, they continue, isn’t some grand transformation of America. It raises taxes on energy and offsets them with tax cuts for the middle class. It raises taxes on the rich to a level slightly above where they were in the Clinton years and then uses the money as a down payment on health care reform. That’s what the budget does. It’s not the Russian Revolution.
How moderately wonderful, right? They’ve now dazzled Brooks again. They’re not “liberal crusaders”, they’re moderate pragmatists who want to lend stability to the economy.
Brooks then goes through a litany of things “Republicans should like”. He finishes up by claiming he still thinks they’re trying to do too much too fast, and that may lead to problems “down the road”, but all in all, he’s impressed by their sincerity, commitment to what is best for America and the fact that all of this is not going to cost anywhere near what all the critics claim.
On their face, the arguments are nonsense. This is the biggest planned expansion of government in a century. Estimates are the federal government will be hiring between 100,000 and 250,000 new employees to oversee its new programs and spend the trillions of dollars being borrowed through debt instruments right now.
Unlike the rather facile and easy to impress Brooks, Charles Krauthammer takes a look at the spin and deconstructs it rather handily.
At the very center of our economic near-depression is a credit bubble, a housing collapse and a systemic failure of the entire banking system. One can come up with a host of causes: Fannie Mae and Freddie Mac pushed by Washington (and greed) into improvident loans, corrupted bond-ratings agencies, insufficient regulation of new and exotic debt instruments, the easy money policy of Alan Greenspan’s Fed, irresponsible bankers pushing (and then unloading in packaged loan instruments) highly dubious mortgages, greedy house-flippers, deceitful homebuyers.
The list is long. But the list of causes of the collapse of the financial system does not include the absence of universal health care, let alone of computerized medical records. Nor the absence of an industry-killing cap-and-trade carbon levy. Nor the lack of college graduates. Indeed, one could perversely make the case that, if anything, the proliferation of overeducated, Gucci-wearing, smart-ass MBAs inventing ever more sophisticated and opaque mathematical models and debt instruments helped get us into this credit catastrophe in the first place.
And yet with our financial house on fire, Obama makes clear both in his speech and his budget that the essence of his presidency will be the transformation of health care, education and energy. Four months after winning the election, six weeks after his swearing in, Obama has yet to unveil a plan to deal with the banking crisis.
As Krauthammer points out, none of the costly things that Obama pledged to focus on have anything to do with the down economy. They all do, however, include the the probability of causing even more damage if enacted.
And since they’ve been in office, Obama or his surrogates (mostly in the guise of Timothy “tax cheat” Geithner”) have talked down the stock market, the auto industry, the oil and gas industry, the health care industry, energy, banks, financial and the defense industry. They still don’t seem to realize what impact their words have on markets, or if they do, then one has to assume they’re doing this on purpose. I tend toward the side of ignorance, but at some point, after it has been pointed out to them over and over again, you have to abandon that belief and head toward the other conclusion. Their words, quite literally, are wrecking the economy.
Markets can’t stand instability and insecurity. When leaders talk about what’s wrong with this industry or that industry and what they intend on doing to punish or change how that industry does business, investors get very nervous. As you might imagine, they’re extremely nervous right now, as reflected by the Dow. They know that there is a government assault coming, in some form or fashion, on the industries I’ve mentioned. So they’re going to get out of the position they now hold in them and they’re going to refrain from investing in them until they’re clear what that assault will entail. And I don’t use the word “assault” lightly.
Health care, defense, oil and gas, pharma, auto, energy, housing, banking, finance etc. are all under a form of assault by the new administration. Health care will change and expand dramatically under government auspices, oil and gas will lose tax breaks, cap-and-trade will bury the auto industry and shoot energy prices through the roof – affecting transportion and manufacturing. Cram-downs affect the housing, banking and financial sectors. Who wants to invest in any of that when a judge can reward irresponsible home owners with a write down of their principle? Meanwhile responsible home seekers will see the interest rate go up by about 2 points to cover the losses. That’ll spur homebuying, won’t it?
Like Dale pointed out about the Red Kangaroo, you can see this coming from a mile off. And “useful idiots” like David Brooks climb back on the bandwagon and resume cheering the parade to economic ruin.