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    If nothing else, Obama does “panic” well

    If nothing else, Obama does “panic” well

    John Podhoretz notes that Obama is trying to talk the markets into a panic as part of Obama’s political strategy (emphasis mine):

    An enraged Barack Obama just took to the nation’s airwaves to announce his effort to strike a deal with Republican Speaker of the House John Boehner has fallen apart. Perhaps for the first time in American history, this president is literally using this press conference to create a financial panic over the weekend about the opening of the markets on Monday. He is warning of disaster on Monday. Clearly,  he wants to use this as leverage to frighten the GOP into passing the plan proposed by Senate Minority Leader Mitch McConnell, which will push the debt ceiling problem into 2013, but it’s still an entirely new and astonishingly reckless gambit.

    I agree with the analysis with one big exception, the use of the terms “first time” and “entirely new.”

    In fact, talking down the markets and creating a sense of panic is one of the few things Obama has done well. 

    Recall February 2009, when Obama wanted to push through the Stimulus Plan and created a near panic in the markets which caused even the last bull to capitulate:

    There’s an old saying on Wall Street that a bear market has not bottomed out until the last bull capitulates. News flash. The last bull has capitulated. Me.

    …. For the first time in my adult life, I am convinced that we have a President who sees capitalism and markets as the enemy. There is no other explanation for the hyperbolic rhetoric Obama has used to create a sense of economic crisis far in excess of reality….

    Obama seems to be wishing so hard for a depression, he might actually get it. Obama is well along in the process of creating a self-fulfilling prophecy in which he so talks down the economy, and so shakes markets, that people are paralyzed with fear allowing Obama to push his political agenda of creating a command economy.

    So Obama’s friday afternoon press statement was not the first time and it will not be the last time.  Crisis and panic are, in the words of Rahm Emanuel, just opportunities.

    And in other news, the absolute, drop-dead, we default if the debt ceiling is not raised by August 2, uh, um, may not be August 2:

    For months, markets have been girding themselves against the possibility that the U.S. will reach the limits of its borrowing ability on August 2 and default on its debts. But researchers at Barclays Capital think the real deadline may not be until a week later.

    No one could have seen that coming.

    Update:  Jeff Dobbs has some more examples of Democratic doomsaying from 2008.


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    […] (Legal Insurrection) adds an interesting new dimension on the debt ceiling saga from yesterday: Obama may be trying to create a market panic on Monday for so the Republicans are forced to cave and give him even more power under the McConnell plan: I […]

    The United States is in no position to participate in a world war generated by a financial crisis, because our president and commander in chief would not want us to “win.”

    Mutnodjmet | July 23, 2011 at 11:19 am

    I hadn’t considered this angle before, and I think you are quite correct. Obama’s CLINTON dreams in a HOOVER world.

    Viator | July 23, 2011 at 1:12 pm

    Obama vs. Boehner: Tax battle again plagues debt ceiling tax
    by James Pethokoukis

    “Boehner says they had an agreement on $800 billion in revenue, but then Obama asked for $400 billion post Gang of Six report. The “goal posts” were moved. That extra $400 billion would come from higher tax rates. That is an absolute, no-go, red-zone issue for Republicans. Where would the original $800 billion have come from? First, extra revenue from more economic growth generated by tax reform efficiencies. Second, and this is a pretty good guess based on what Boehner said, better tax enforcement. Here is Boehner describing where the money came from ” … and a tax system that was more efficient in collecting the taxes that were due the federal government>”
    That is a classic item on the liberal agenda, and I can easily see Obama pushing it.”

    “Despite what WH briefers may be saying, any new revenue in the framework would NOT have been generated by letting the current tax rates expire. That is simply false. Under the framework discussed, a CEILING was agreed upon that could generate $800 billion in new revenue over ten years. This would be done through comprehensive tax reform that would clear out deductions, credits, and loopholes in the system – and spur economic growth. After the gang of six plan came out, the White House moved the goal posts and insisted on $400 billion more in higher taxes – a 50% increase in revenue – and wanted that to be the FLOOR instead of the ceiling. The President acknowledged this in his remarks tonight. “Letting tax cuts expire” was never part of the tax reform agreed to.”

    <a href=""James Pethokoukis, Reuters

    […] Prof. Jacobson: “If nothing else, Obama does ‘panic’ well.” “Obama’s Friday afternoon press statement was not the first time and it will not be the […]

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