President Obama vowed in his weekly radio address to do all that is necessary to boost the ailing US economy. That’s the problem. The markets and the president have a very different idea of what is necessary.
The market would like to see tax cuts and good ol’ public works spending to make durable improvements in the nation’s infrastructure. Obama’s proposals pick winners and losers, creates new entitlements at a time when the country is already facing a tidal wave of spending as the population ages and forces the population to make energy choices for social reasons rather than economic ones.
Even the Liberal intelligentsia is beginning to push back; they have 401ks too. Obama has bitten off more than the country is willing to chew. Look for him to begin back-peddling in the weeks ahead.
