I agree. Those Senate seats are very important but so is Obama’s presser. He can help stem this crisis if he reneges on his plans to raise taxes. I think many in the market hope that Obama blows off raising taxes, the centerpiece of his re-election campaign.
The problem right now is nobody really knows what he will do. He has such an astonishing thin record to go on and is adding Dem partisans and Clinton retreads with ties to Fannie and Freddie to his potential cabinet. With Emmanuel as Chief of Staff, there will be no uniting of Red and Blue America. And with the Clinton hacks back there will be no real change.
It was Clinton who signed into law the removal of key parts of Glass/Stegall breaking down barriers between investment firms and banks and also pushed “regulation” which not only encouraged subprime loans to folks who couldn’t get conforming loans but required these loans to get federal money if you were a company bigger than $1 billion.
I am not saying that the Dems were only to blame. Both sides deserve blame. Unfortunately the electorate seemed to blame only one side for this mess. So not only are some key players who helped cause this mess are still in power heading committees in Congress and some will also be coming back to work in the White House.
