Wednesday, September 07, 2011

Obama's huge challenge tomorrow evening

Notwithstanding my Friday post, every word of which was meant with the exception of one embarrassing misspelling that has since been corrected and I hope that no one noticed, it must be acknowledged that Obama has a challenging mission tomorrow. Does he dare cut spending in an economy under pressure. Does he dare raise spending on programs that will make no difference and just perpetuate the current state, fingers crossed that more support of state shortfalls and ineffective housing programs will buy enough time for the economy to revive. Could he even think of raising taxes without creating a poltical brouhaha.

Tax reform broadly and public/private infrastructure projects are nice ideas but are not overnight or even one year solutions. Those words still might be nice to hear.

My biggest fear is that he will direct the majority of his comments to partisan words and finger pointing, that he will use this speech as a political platform. The majority of Americans might even like to hear him take this approach, but the majority of Americans don't move the stock markets and make major capital investments. Without a better market environment, nothing will improve. I am not even sure that he understands this and what alienating the people, like 'em or not, who make investment decisions of any magnitude could cause.

It not an easy speech to make, maybe having as much danger as opportunity.


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