Sunday, November 01, 2009

'Too Big To Fail' Means Too Big

As Obama starts to verbalize the economic recovery, Republicans are in a strong position to dominate the debate by continuing populist themes. It could be argued that Bush's TARP was necessary to avert calamity, and his mistake was consolidating, not smashing 'too big to fail' banking monopolies. Positive market movement during the last two quarters can be attributed to those financial stabilization measures, though a fresh faced President did lead to some optimism. But as his policies are becoming clear, the market is weighing the true breadth of Obama's economy and it is pausing. Obama is now claiming his $787 billion stimulus is making a huge impact, but little has been spent. The most significant impact has been on America's credit card bill and our credit rating.

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