Wednesday, February 18, 2009
the permanent change in consumer behavior
also referring to davidowitz is cafe americain, with some political editorial.
The gloomy long-term Depression outlook becoming so popularly accepted that we find ourselves rebelling against it. Perhaps unjustifiably so.
It will come down to what the Obama Administration does about the Banks. If the big Wall Street banks are allowed to absorb the capital vitality of the economy and limp along as insolvent zombies it is highly possible that we will have our own 'lost decade' like the Japanese experience.
Larry Summers is in command as the economic advisor with young Tim as his minion. We can barely imagine the infighting that must be going on between the practical politicos around Obama, probably led by Rahm Emanuel, who must be simply frothing at the boneheaded policy blunders that Geithner and Summers are creating.
A chart of W's popularity shows a decided peak just after 911, and then a steady decline into political oblivion and one of the worst popularity ratings in modern presidential history. It is now being revealed that there was a feeling in the White House that Cheney and Rumsfeld misled the president and cost him, dearly. W became very cool and detached with Cheney and his circle in the last two years, He ignored personal pleas to pardon Cheney's man, Scooter.
There is a real possibility that Larry Summers and Tim Geithner could be the spoilers for Obama despite the enormous wave of popular support which he enjoys today. Betting on the over/under, we suspect that eventually Rahm will put him in a political body bag, with Larry providing plenty of personal assistance in his own demise. But that's just an opinion and it could be wrong. Their failure is definitely not in the best interests of the country.
more from davidowitz on tech ticker: "get ready for mass retail closings" and "american retail goods: on sale now -- and forever?".