The Logic Lifeline

A logical approach to sorting out world events. Where logic, opinion and speculation are combined to produce a reasoned, but entertaining reading experience. The unofficial hometown conservative blog of Woodridge, Il

Monday, March 23, 2009

The Economy is Barack Obama's Katrina

Note: During my illness the last few weeks I have been slowly writing this post. In that time, I lost the opportunity to be the first to name the economic tide of devastation Obama's Katrina. In the last week it has cropped up all over. For the record, I thought of it long before. Ahh well.

In 2005 Hurrican Katrina brought devastation to New Orleans and the surrounding area. George W. Bush did not cause Katrina to happen, yet Katrina is judged as one of his administrations greatest failures. Why? He is judged on his administrations response to the disaster. While we can argue over the exact causes of our current economic crisis and which side of the aisle is to blame, one thing is certain: the Obama Administration did not cause it. Like Katrina, as far as the Obama Administration is concerned, it is something beyond their control that happened. A disaster.

The question now is: how is the Obama Administration going to handle this disaster? What are they going to do to reduce it or make it go away? The components of the economic disaster are:

- The failing financial institutions (risk of massive failure; reduced confidence; difficulty to obtain loans)
- The ailing housing market (prices sinking, massive mortgage defaults)
- Rising Unemployment
- OPEC continuing to cut oil production threatening another rise in fuel prices (either now, or if the economy begins to improve)

Financial Institutions - Obama's actions during his terms as Senator, during the campaign and as president have only led to a policy of throwing billions of dollars at the financial institutions without very little oversight or accountability.

Obama insisted on nominating a tax cheat as Treasury Secretary. Now through blunders in the vetting process and focusing on 'not wasting a good crisis' Obama has not filled the positions that will support Geithner to address the greatest financial threat of our time since the Great Depression. In spite of Geithner's troubles, Obama seems to think he is doing a 'heckuva job'.

Housing Market - The only thing I can say is that without fully recognizing the root causes of the housing market crash, there is little hope of achieving a sustainable solution. Since Obama and his pals at ACORN are at the heart of the housing crisis, there is zero chance of owning up to the root cause. The New York Times recognized the problem in 1999 and predicted the crash during an economic downturn. Of course they had amnesia during the actual crisis. Read about it here.

Rising Unemployment - Obama has done nothing to address the unemployment issue. In fact his actions have been interpreted as hostile to the greatest job creator - the small business sector. We have seen no signals from the Obama camp since taking office other than hostility: higher taxes, higher regulation. If you are a business owner, what are you going to do? Hire and hope things get better? Lay off or hold to save on cash flow until it is safe again?

Fuel Prices - Obama moved very fast to reverse all the domestic drilling policy changes enacted before the election to help quell the raging rise in oil prices. The oil bubble burst last fall under the pressure of the policy changes and the economic downturn, but since that time Obama has only enacted policy to send oil prices back in an upward direction. In addition to the policy reversals (putting all domestic hope off limits), Obama sits idly by while OPEC continues to cut production. The final spike in the coffin of affordable oil, is the weakening of the dollar by Obama's massive spending and printing more money to pay for it.


The actions Obama has taken in response to this financial disaster can be classified in one of two categories:

1) Bumbling baffoonery that will not solve the problem
2) Enact targeted actions that have nothing to do with the economy, but will bring a complete paradigm shift in the political landscape.

Initially, it looked like Obama and team were doing #1 and simply throwing money at the problem hoping it would help. As time goes on, however, it is becoming clear that the actions taken are tarketed at very specific social change. Instead of fixing the problem, the Obama Administration is choosing to take the opportunity to ram a liberal/socialist agenda down our throats. In the end, we will have a weaker economy, a weaker military, a weaker dollar and be no stronger economically than before.

Obama has taken careful steps to drum it into the record that he inherited this recession. Granted. An acorn has been left in his lap. Obama cannot take steps that will turn that acorn into a tall oak, then blame his predecessor. He can try, but even if the MSM holds the line there are not enough wagons to circle Obama on something this big. Unfortunately for Obama, the MSM is beginning to go wobbly on him.

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18 Comments:

  • At 11:59 AM, Blogger SkyePuppy said…

    Obama is so obviously out of his element. He has no clue what to do on most issues, and his only area of expertise is growing government control over more and more of American life. This will prove to be a dangerous combination, worse even than Katrina. She, at least, was temporary.

     
  • At 1:30 PM, Blogger All_I_Can_Stands said…

    Skye,

    I have been reluctant to believe it, but it really is beginning to look more insidious than being in over his head. In short, a planned destruction of our economic system would not look much different than what we are seeing under Obama.

     
  • At 11:29 AM, Blogger Malott said…

    Inflation will be the most cruel byproduct of the Obama plan... And the chaos that follows will pave the way for Obama's Socialism.

     
  • At 6:13 PM, Anonymous Sky Puke said…

    Bush was so obviously out of his element. He has no clue what to do on most issues, and his only area of expertise is growing government control over more and more of American life. This will prove to be a dangerous combination, worse even than Katrina. She, at least, was temporary.

     
  • At 5:07 PM, Blogger SkyePuppy said…

    Puke,

    If you think Bush was out of his element, does that make it OK for Obama to be even worse? It's like when Obama says, "I inherited this mess." Then he proceeds to triple the size of the mess. Oh, gee, thanks! That's so much better now!!!

    Your BDS is showing, and last I heard, there's no cure...

     
  • At 7:38 PM, Blogger All_I_Can_Stands said…

    Puke,

    I think you forgot to transition your comments to Obama after the word 'element' in your comment.

    If you did mean for your entire comment to apply to Bush please explain yourself. Why do you liberals never criticize, nor defend Obama? When Obama makes a decision or changes policy, the left never provides commentary on whether it is good or bad. They wait for the right to say something, then criticize that person. Or they don't wait and just start bashing Bush.

    I have my theory why, but would love to hear from a liberal first.

     
  • At 7:44 PM, Blogger All_I_Can_Stands said…

    Skyepuppy,

    Good point on expanding the mess. I would like somebody to tell me what mess ever created is helped by expansion of the mess.

    Is spilled milk helped by spilling 3 times as much?

    Is flooding helped by bringing in more water?

    Is a forest fire helped by starting more forest fires?

    Are sexually transmitted diseases ever helped by infecting more people?

    You get the idea.

     
  • At 9:04 PM, Blogger Christina said…

    All I Can Stands, I 100% agree with you.

    While I believe that, in some specific areas such as defense and foreign policy, Obama is in over his head, in others he is simply doing exactly what he ALWAYS intended to do.

    Obama promised that he would "redistribute" the wealth. I don't know why those who voted for him are surprised.

    America as we know it is under attack from our very own President and Congress and a lot of unwitting citizens don't even know it.

     
  • At 11:31 AM, Anonymous tired of gopparrotts said…

    //America as we know it is under attack from our very own President and Congress and a lot of unwitting citizens don't even know it.//

    Sounds like Bush and his pals over the last eight years. Don't you guys ever get tired of the spouting the same Crapola. Well, America does and the country as a whole voted to say as much.

    Go back and listen to Rush Blowhard and feel better.

     
  • At 8:27 AM, Blogger LASunsett said…

    I see Joe is growing personalities and names, as fast as Obama and Congress are growing the debt.

    OH well, Happy Easter to AICS and family.

     
  • At 10:51 PM, Blogger All_I_Can_Stands said…

    LA,

    Happy Easter to you. As for Joe, I can only guess that the strain of seeing that the new President is becoming likely to be far worse than the outgoing one he railed against for years is spawning multiple personalities in him.

     
  • At 5:55 PM, Blogger Joe Smoe: American Citizen said…

    THE REAL JOE HERE:

    SO I'm betting that all you Dittoheads went to the Tea Party Today at the Behest of your assorted Faux News/GOP SHILLS?

    So, why do you guys care now about the National Debt and could give two S*&^s when your Godly Fuhrer was spending the country intO the ground and not even figuring his LIE BASED Debacle in Iraq into the Budget?

    Hell, even after Bush stole the 2000 election I was willing to give him a 100 days until I started to point out how he was wrong on EVERYTHING. You guys kill me.

    Joe....over and out.

    So, now everyone that doesn't spout and believe the Gospel of Rush HERE is me...right?

     
  • At 9:01 PM, Blogger All_I_Can_Stands said…

    Joe,

    So I can assume you are waiting 100 days before you will be spouting off on how Obama is wrong about everything? At least that makes sense. I was wondering how Obama was doing so many things Bush did, yet in spades and you had nothing to say about it. I have to wait a little longer. Thanks for clarifying.

    No, I did not go to the Chicago Tea Party. I was working. I did want to go and protest that I just this Monday started working for myself instead of the government. Wouldn't it be so nice to have more of your own money instead of having it confiscated?

     
  • At 9:35 AM, Blogger Joe Smoe: American Citizen said…

    // I was wondering how Obama was doing so many things Bush did, yet in spades and you had nothing to say about it. I have to wait a little longer.//

    Like what? Iraq? You and I both know that we aren't going anywhere as those Towel Heads can't be trusted


    //No, I did not go to the Chicago Tea Party. I was working. I did want to go and protest that I just this Monday started working for myself instead of the government. Wouldn't it be so nice to have more of your own money instead of having it confiscated?//

    That figures as those that embrace the DIEING GOP will not do their own thinking and will always do and mouth whatever False News and Flush Limplard tell them. Yeah, you guys are really informed as you have rich fat white guys telling you to complain about the taxes they have to pay as they and the GOP in the end stick you and ME with the bill...like they did under BUshco.

    Congrats on the business. Maybe you and I can make a few bucks now that Bush in not in there cutting funding to the SBA. Wake up and think for yourself.

    And I think Obama giving cash to those Rat F*(&ing Bastards in the FInancial industry is a mistake...is that good enough for ya or you won't give mine or anyone elses opinion creedance until we can spout Rush's or Swill O'Reilly's latest show verbatim??

     
  • At 10:01 AM, Blogger Joe Smoe: American Citizen said…

    Here's a newsflash for you GOP Lovin Clowns:

    Meghan McCain warns of looming civil war in the GOP

    ""I feel too many Republicans want to cling to past successes…I think we're seeing a war brewing in the Republican Party," she said. "But it is not between us and Democrats. It is not between us and liberals. It is between the future and the past…"

    Yes, the daughter of Senator “OLD GUY” has it right even as you all here spout the same old tired GOP/FALSE NEWS mantras.

    I'm bettin that everyone here is White, Middle Aged and still fighting the Vietnam war in some way. Face it your party is the Party of the Fat, Old White Bible Bangers. Your days are over and you have lost a generation.

    When the EVIL Karl Roves protégé Schmidt speaks to the Gay Republicans and says that it is time to be more inclusive we ALL know that a shift is occurring. Also, I know for a FACT that you all will cling to your old and out dated views even as your party tears itself to pieces. Good riddance to the EVIL GOP and all that are duped into thinking that they and their Corporate Masters really have the USA's best interests at heart

    Over and out....

    JOE

     
  • At 11:56 AM, Blogger All_I_Can_Stands said…

    Joe,

    I am fine with the current GOP dying a quick death. How is is that you still do not understand?

    If I need to hammer in a nail and I only have a pair of pliers and a pipe wrench which do you think I am going to use? I would much rather have a hammer, but it is not a choice given me.

    I find it ludicrous that you and others seem to think that the only way for the GOP to save itself is to become more like the DEMS. So if we have two parties that are so alike it is hard to tell them apart, what is the difference between that and having only one party? Do you want only one party?

     
  • At 2:27 PM, Blogger Joe Smoe: American Citizen said…

    No I and a lot of others in this country want a Third or even a Fourth Party.

    This the only way that the Whores in Washington and the existing power structure will ever listen again to the common man...or those that pay the Bills.

    I will admit that I hate the GOP and what they have done to the country and just want to see their total demise. Why, is it that so many with so little would support a party dedicated to the destruction of the middle class and the enhancement of the RIch and multinationals I will never understand.

    JOE

     
  • At 4:22 PM, Blogger All_I_Can_Stands said…

    Joe,

    Your last comment was a breath of fresh air. It is the most rational, insightful, and reasoned thing I have ever seen you write. That is the level I would love to have discussions with all posters.

    I too would love to see 4 parties. Not 3 as it would split one side too much (especially right now).

    It may perhaps be true that the GOP has over-benefitted the very rich. However, the DEMS have over-benefitted the low income class by completely removing consequences of poor choices in their life. This has resulted in ongoing poor choices by the same people and poor choices by those who follow and see it is not so bad to make poor choices.

    Wish I could write more. Perhaps later.

     

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