Obama Declares Jihad Against Banks
What is President Obama going to do in light of the thrashing his party suffered at the hands of Massachusetts voters? Washington, D.C., is agog with advice and speculation. Will he tack toward the middle? Will he dig in his heels on health care? Will he provide a convincing economic plan to create more jobs in his State of the Union speech, scheduled for next Wednesday night?
The early verdict is that he is heeding the advice of the left and has decided to declare jihad against the banks. This will be his new “pivot” on which he will seek to restore the economy and produce jobs.
As Ronald Reagan would say, “there he goes again" -- which means, there he goes again jumping off another political cliff.
Soon after the Tuesday massacre, Arianna Huffington echoed many on the left who have the ear of the president. Quoting one of the architects of one of the biggest electoral disasters in a half-century, Huffington said: “Celinda Lake, Martha Coakley's pollster, spoke the truth yesterday when she said their campaign was hurt by the White House's failure to confront Wall Street.”
The evidence is that Mr. Obama’s advisers, still insulated from the real American economy, believe Arianna and Lake’s formulation makes good politics. Actually, they believe it’s great politics. After all, no one likes the banks.
This is a great strategy!
But his policy of imposing new fees on non-FDIC investments means people will run away from the few investments that are making money in our economy. Treasury bills, bonds, CDs, and money-market funds have remained in the tank all year long. The only places grandma and grandpa and their children can make a dime is in mutual funds and stocks.
But let’s tax those! This ought to make Main Street really happy!
His second attack -- also on banks -- is on the size of those institutions. Yes, it may seem like good politics. It may be. But it’s awful economics.
As James Carville, Clinton’s guru, once said, “It’s the economy, stupid!”
Minutes after he declared war again on the banks, the stock market tanked 200 points, with banks taking the heaviest hits.