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Monday, March 9, 2009

BHO Report Card

Here's my assessment of BHO's performance since his inauguration.

Economy - Yes something had to be done to inject capital into the banks and since the fed has used up its most effective pump priming tools, the only significant option left is fiscal policy - thus the bloated, earmarked stimulus package. His biggest mistake was allowing the left wing kooks in the house to write the bill so they could include all their little pet projects that the Bush administration had more effectively blocked. Not to say that the republicans were without blame in this 'pork" game. Witness Ron Paul - he of a most conservative and libertarian bent - was one of the worst offenders from my state of Texas. Plus much of what is in this bill will take many months if not years to have any meaningful effect on job creation and consumer confidence so my overall assessment is too much, too late and we'll pay dearly for it with inflation down the road. Grade C-.

Housing - As much as I personally abhor the idea of bailing out people who bought houses that they knew they couldn't afford, doing nothing is not the best option since stabilizing housing prices is key to stabilizing the economy and the markets. Whether or not the TALF legislation will be effective in doing so remains to be seen since the details of how it will work are still a little fuzzy, but we'll see. Grade an optimistic B.

Markets - Obama and his team seem blissfully unconcerned about Wall Street. Well Wall Street seems very concerned about Obama and his policies since the market has been free fall to new 12 year lows seemingly every day since his election - only to accelerate since the inauguration. Message to the Obamaites - the financial security of Main Street is intimately linked to the strength of Wall Street. Pension funds, 401K's, IRA's and the like have all been battered - and by extension the financial security of millions of Main Street folks - by the recent market implosion. To paraphrase an often misquoted former President of GM, what's good for Wall Street is good for Main Street. Obama was loud and clear on the Armageddon message to get his stimulus bill through congress, but I think he oversold the fear factor and needs to use his bully pulpit to talk up the strengths and examples of resiliency of the American economy (and there are more than just a few of those) that will lead to a strong recovery. In other words he needs to listen a little more to Warren Buffet and less to Barney Frank. Grade F.

Stem Cell Research - Reopening the door to embryonic stem cell research is a very good idea. Grade A.

US Oil Shale - Blocking large tracts of western lands to oil shale development is a very bad idea when we need all the sources of energy we can muster. Grade D-

Iraq - As much as it may rankle the hotheads on the left, BHO has generally a good job listening to his generals and executing Dubya's plan. Let's just remember that when the troops finally do come home and leave a stable, self-governing Iraq behind we know whom to thank. The "Surge" worked. Grade B+

Afghanistan - Too soon to tell where this waste of a nation is headed, but I do like Obama's resolve not to allow it to become the last refuge of the radical Taliban and Al-Qaeda factions that are still a severe threat to the west and all other developed nations. This place reminds me of the Mad Max film sets. Grade - Incomplete

Iran - Not off to the best start. Throwing Poland and the Czech Republic under the bus in an attempt to curry the assistance of Russia was naive at best and perhaps dangerous as it exposed how helpless the US government feels about having any influence in Iran. In the end however this will likely not be our problem to solve since absent some remarkable internal transformation driven by more moderate forces within the country, Israel will do what it needs to do - regardless of international opinion - to protect itself from the mad mullahs of Qom and Tehran. Grade D.

As always feedback and comments are most welcome.