March 12, 2009
A Survey Of 49 Top Economists Calls Into Doubt The Whole Idea That Barack Obama Even Has A Brain
President Obama and Treasury Secretary Timothy Geithner received failing grades for their efforts to revive the economy from participants in the latest Wall Street Journal forecasting survey.
On average, they gave the president a mark of 59 out of 100, and although there was a broad range of marks, 42 percent of respondents graded Obama below 60. Geithner fared even worse, with an average grade of 51. Federal Reserve Chairman Ben Bernanke scored better, with an average 71.
“The Obama team has blown it,” said David Resler of Nomura Securities.
“The package already passed was too much too late,” said Dana Johnson of Comerica Bank.
“The most important issue in the short run is the financial rescue,” said Stephen Stanley of RBS Greenwich Capital. “They over-promised and under-delivered. Secretary Geithner scheduled a big speech and came out with just a vague blueprint. The uncertainty is hanging over everyones head.”
February 24, 2009
Due to what many investors see as Obama’s shocking fear mongering about the economy…
Wall Street has turned the clock back to 1997. Investors unable to extinguish their worries about a recession that has no end in sight dumped stocks again Monday. The Dow Jones industrial average tumbled 251 points to its lowest close since Oct. 28, 1997, while the Standard & Poor’s 500 index logged its lowest finish since April 11, 1997.
All the major indexes slid more than 3 percent. The Dow is just over 100 points from 7,000.
“People left and right are throwing in the towel,” said Keith Springer, president of Capital Financial Advisory Services.
Investors pounded most financial stocks even as government agencies led by the Treasury Department said they would launch a revamped bank rescue program this week. The plan includes the option of increasing government ownership in financial institutions without having to pour more taxpayer money into them.
Although the government has said it doesn’t want to nationalize banks, many investors are clearly still concerned that this could be a possibility as banks continue to suffer severe losses because of the recession. They’re also worried that banks’ losses will keep escalating as the recession sends more borrowers into default.
“The biggest thing I see here is the incredible pessimism,” Springer said. “The government is doing a lousy job of alleviating fears.”