I had intended this post at the 30 day mark of the Obama administration, but never got around to it, but now is as good a time as any. Since taking office on January 20, The Dow Industrials have lost nearly 1000 points. The financial sector is on life support, the medical sector is in the process of crashing, and unemployment is rising at a frightening rate. Now, one month is not enough time to turn an economy around, and Obama inherited an absolutely awful situation. However, the returns so far are not looking promising. His Treasury Secretary, Giethner, seems to be determined to be Hank Paulson, Jr. The "stimulus" was nothing more than another case of pork barrell spending by Congress, the "mortgage bailout" he is proposing rewards the most irresponsible borrowers (those who have jobs and decent credit scores, but just bought more house than they could afford. If you are losing your house because your income vanished, you do not qualify). The market is voting with their money, and it's "no confidence".
As regular readers know, I live in California. In 2003, one of the most incompetent Governors in the state's history was recalled, and replaced by Arnold Schwarzeneggar, who promised to solve the state's financial crisis. I did not have high expectations, but gave him the benefit of the doubt.
Here it is, 6 years later, and he is still trying to solve it. Let's hope that Obama has more success.
Charts courtesy of stockcharts.com