Obama Pumping Money into the Auto Industry
You’re free to interpret this one as you wish.
Obama, the Economy and Public Opinion
March 31, 2009 By
Obama, the Economy and Public Opinion
Polls come and polls go. At best, individual polls are mere snapshots of public sentiment on any given issue. At worst, polls can reflect the bias of the pollsters themselves or those who interpret the data. Questions can be skewed in the way they’re phrased to elicit a desirable response. One’s best defense is to only pay heed to polls which come from reputable sources.
When it comes to politics, polls are even more of a concern. As the old line goes, a week is an eternity in politics in that public opinion can instantly shift on breaking news. What is of greater relevance when one is interpreting a new poll, is to look at the trend. If it’s all pointing in one direction, then one can have greater confidence that the polling results are a true reflection of the public opinion.
So what am I leading to here? Simply that in in this time of economic uncertainty, being able to gauge public sentiment and trust in their elected leaders is of paramount importance. Emerging from a recession has as much to do with hard numbers and policies as it does with public perception. When people lose faith in their institutions, then it doesn’t matter a damn how you tweak the system. It’s imperative you get the majority to believe you’re implementing the policies and changes which will turn it all around in due time.
So, how is President Obama doing in this area of public perception? He’s doing pretty good and the numbers are heading in the right direction. Here’s the latest from a Washington Post/ABC poll.
Forty-two percent now believe that the country is headed in the right direction compared to 8% back in October. As well, 57% believe it’s headed in the wrong direction as compared to 90% in October. Good trends.
Again, the trend is pointing in the right direction.
A 65% approval rating in this ugliest of times is a positive sign.
What we can discern from the above poll is that there is still a way to go in boosting consumer confidence. Millions have lost their jobs while millions of others are suffering in one way or another during these tough economic times. But in the all important area of public perception, the numbers are all pointing in the right direction. Your thoughts?
Obama Takes Hardline on GM and Chrysler
March 30, 2009 By
GM and Chrysler - Crunch Time
In a speech today, President Obama laid out the government’s ‘tough love’ approach in future dealings with automakers, General Motors and Chrysler.
The Associated Press:
“President Barack Obama refused further long-term federal bailouts for General Motors and Chrysler, saying more concessions were needed from unions, creditors and others before they could be approved. He raised the possibility Monday of controlled bankruptcy for one or both of the beleaguered auto giants.
At the same time, eager to reassure consumers, Obama announced the federal government would immediately begin backing the warranties that new car buyers receive — a step designed to signal that it is safe to purchase U.S.-made autos and trucks despite the distress of the industry.”
The highlights:
- Late last year, GM has received 13.4 billion in government loan from the Bush administration. Chrysler received $4 billion.
- In February, GM asked for another $16.6 billion while Chrysler asked for $5 billion more.
- The automakers are facing the worst auto sales in 27 years.
- GM owes a combined $48 billion to its bondholders and retiree health care trust.
- Chrysler owes approximately $18 billion to it’s bondholders and health care trust.
- The government will offer GM “adequate working capital” over the next 60 days. This is the time period in which GM is expected to offer a restructuring plan.
- Obama has given Chrysler 30 days to finalize a merger with Fiat SPA. If successful, the president stated that the government would consider lending a maximum of $6 billion to Chrysler.
- In a move to bolster consumer confidence in GM and Chrysler, the government will stand behind warranties issued by the companies.
It is clear that the government is much more concerned with the survival of GM than they are of Chrysler. The demise of GM, the world’s 2nd largest carmaker, would have a much greater impact on the economy than would that of Chrysler.
The bottom line in the President’s message is that both automakers must restructure immediately if there is any hope of either receiving further bailout money.
Breaking News!
Chrysler just announced that a deal has been reached with Fiat.
“We are pleased that Chrysler, Fiat and Cerberus have reached agreement on a global alliance, supported by the U.S. Treasury.”
The President’s speech on the auto industry:
Visit msnbc.com for Breaking News, World News, and News about the Economy
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President Obama hits the World Stage
March 29, 2009 By
Obama On World Stage
This week Barack Obama heads off on his first European trip as president. His itinerary takes him to London for a meeting of the G20 – the world’s 20 largest economies , to Czechoslovakia on the occasion of NATO’s sixtieth anniversary and then to Turkey where Obama will hold a global, video-based town hall meeting. There is speculation that it will be in Istanbul where the President will deliver his long-awaited address to the Muslim world.
“After 69 days in which international issues have taken a back seat to attempts to rescue the economy at home, President Obama takes the world stage this week as a wildly popular figure among the people of Europe, but one who faces a difficult task in selling his plans to the continent’s leaders.
The president plans to push for a new approach to the war in Afghanistan, aggressive action to stop the proliferation of weapons and a more united European effort to combat the global recession.
But if the U.S. president thought his popularity would cause foreign governments to fall quickly into line behind a new American leadership, experts warn, he could be in for a rude awakening.
The German government has resisted calls to deploy more combat troops to Afghanistan. Russia is pushing back against a NATO missile defense system in Poland. And the Czech prime minister last week described the U.S. plans for global economic recovery as the “road to hell.”
The London meeting will deal with the need for a global stimulus package as well as laying the groundwork for reforming the policies and structures which in part caused the economic crisis.
The Prague meeting will focus on the proliferation of dangerous weapons as well as putting forth a strategy for fighting the terrorist threat as well that of rogue nations.
A major component of Obama’s European trip will be to restore America’s standing in the world.
Washington Post:
“Obama’s election was heralded by many European leaders as a clean break from the administration of President George W. Bush, who angered many in foreign capitals with what they viewed as slight regard for their input. They saw Obama’s Republican predecessor as reckless and too willing to act without first achieving consensus.
We think [the trip] is obviously going to be a fundamental part of the president’s agenda of restoring America’s standing in the world, and particularly in Europe,” said Denis McDonough, deputy national security adviser for strategic communications.
Longtime observers of cross-Atlantic presidential trips say Obama retains much of the star power he exhibited during his campaign swing through Europe last summer, when he delivered a speech to more than 200,000 people in a German square.
“It’s still a case that European leaders want to be seen next to Obama, preferably with Obama, his arms around their shoulders and a big smile, because he’s so popular in Europe,” said Reginald Dale, a senior fellow at the Center for Strategic and International Studies.”
More to come…
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Republican’s Present A Numberless Budget
March 28, 2009 By
The GOP's No-Number Budget
The Republican Party embarrassed themselves on Thursday by announcing that they had come out with a budget proposal to counter the Obama budget. Unfortunately (or comically) they left out the numbers and simply presented a rehash of Bush era economic policies.
Here’s how the conversation went between House Minority Leader Boehner, who introduced the budget, and reporters.
From the Huffington Post:
“Today we’re introducing a detailed road-to-recovery plan,” he told the reporters. Other than the tax proposal, however, the plan was absent any details. Instead, it hammered the Democratic budget as too expensive.
Reporters — mainstream, liberal and conservative — greeted the Republican document with a collective scoff.
“Are you going to have any further details on this today?” the first asked.
“On what?” asked Boehner.
“There’s no detail in here,” noted the reporter.
Answered Boehner: “This is a blueprint for where we’re going. Are you asking about some other document?”
A second reporter followed up: “What about some numbers? What about the out-year deficit? What about balancing the budget? How are you going to do it?”
“We’ll have the alternative budget details next week,” promised Boehner. Minority Whip Eric Cantor (R-Va.) had wisely departed the room after offering his opening remarks. (“Today’s Republican road-to-recovery is the latest in a series of GOP initiatives, solutions and plans,” he had offered.)
A third reporter asked Boehner about the Republican goal for deficit reduction, noting President Obama aimed to cut it in half in five years. “What’s your goal?”
“To do better,” said Boehner.
“How? How much?”
“You’ll see next week.”
“Wait. Why not today? Because he asked you to present a budget.”
“Now, hold on,” said Boehner. “The president came to Capitol Hill and laid out his blueprint for his budget during the State of the Union. He didn’t offer his details until days later.”
“In general, where do you see cuts coming?” the Huffington Post asked.
“We’ll wait and see next week,” he said.
Another reporter reminded Boehner that he has “criticized Democrats for throwing together a stimulus quickly and nobody knew what they were voting on. Are you saying that your budget will be unveiled on the same day that the House is expected to vote on it?”
“No, I expect it’ll be out next week,” he said, though the House is expected to vote on the budget next week. “But understand that a budget really is a one-page document. It’s just a bunch of numbers.”
Though not today, of course.
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Too much! And these clowns want the levers of power back?!!?
The Democratic National Congress immediately responded with one of their cutesy web videos which deservedly mocks the Republicans.
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