Obama gives very specific economic policy.

[Kidlicious]

Originally posted by One_more_turn
The problem with the US economy is that too much is focused on consumer spending and not enough on business/productivity investment.

Businesses won't invest unless consumer spending increases. This is USA not Japan.

[One_more_turn]

Consumers are exhausted and will be so for quite some time. Someone else got to take the lead.

[Dinner]

Originally posted by One_more_turn
The problem with the US economy is that too much is focused on consumer spending and not enough on business/productivity investment.

26 years ago, Reagan did the right thing by lowering taxes. But today, the pendulum needs to swing the other way. Government must make some strategic adjustments in which direction this country is moving.

It's all about balance. To much regulation is bad but no regulation is equally destructive.

[Kidlicious]

Originally posted by One_more_turn
Consumers are exhausted and will be so for quite some time. Someone else got to take the lead.

Business investment has been strong over recent years already, which means that it will be expecially weak in the near future anyway. Anyway, it can't possibly take up the slack, let alone drive the economy. That would be like an ant carrying an elephant.

[Wezil]

What does the Obama Girl say about his economic policy?

[Kidlicious]

Originally posted by Wezil
What does the Obama Girl say about his economic policy?

"What is that?"

[Wezil]

He should name her as his VP candidate.

[Dinner]

[DanS]

It's easy to tell that the economy isn't Obama's strong suit. The fact is that the market is and will remain tumultuous. That's how markets work. Markets punish people who make bad bets, and it is punishing people now with a vengeance. The net result of Obama's proposed policies is that people who made bad bets will be rewarded. That's precisely the thing that we need to avoid.

The one thing I agree with him is that there should be more of a focus on transparency. But I would look towards standards-setting rather than regulation. Most standards-setting will be done outside of the government.

[Colonâ„¢]

The president's role in the economy is to pick a competent central banker. All else is bull****.

[Kidlicious]

Originally posted by DanS
It's easy to tell that the economy isn't Obama's strong suit.

It's a heck of a lot better then just continuing Dubya economics. I think the economy is going to be an even bigger issue for the Dems than Iraq.

I think in reality McCain has no chance. It only looks that way now because Hillary hasn't dropped out.

[Dinner]

Dan, that was a drive by shooting if ever I read one. Obama hasn't denied that the markets will remain tumultuous for a while as the correction is made. Instead he's been talking about updating the 1930's era regulations to reflect current realities & practices so that a repeat of this bubble and bust becomes less likely in the future.

Either you didn't watch his speech in the OP or you're just showing your bias with cheap attacks which have no basis in what he said.

[Geronimo]

Originally posted by DanS
It's easy to tell that the economy isn't Obama's strong suit. The fact is that the market is and will remain tumultuous. That's how markets work. Markets punish people who make bad bets, and it is punishing people now with a vengeance. The net result of Obama's proposed policies is that people who made bad bets will be rewarded. That's precisely the thing that we need to avoid.

The one thing I agree with him is that there should be more of a focus on transparency. But I would look towards standards-setting rather than regulation. Most standards-setting will be done outside of the government.

Do you think the current regulations could have prevented the great depression? Do you think government could have prevented the Great depression?

[DanS]

Originally posted by Oerdin
Either you didn't watch his speech in the OP or you're just showing your bias with cheap attacks which have no basis in what he said.

I watched the speech. The problem is that his premise is false. You can't regulate the market functions out of the market and still have a lively, well-functioning market.

The problem we have now is that some debt markets are closed because nobody knows the unknown risks. Regulation wouldn't have stopped these markets from closing and regulation can't help them reopen. It's a matter now of transparency so that we know the unknown risks, and standards-setting so that there is a systematic way of evaluating the information that will be disclosed.

[DanS]

Originally posted by Geronimo
Do you think the current regulations could have prevented the great depression? Do you think government could have prevented the Great depression?

I used to think so. As we're watching debt markets close, however, it certainly leads me to have a greater appreciation for the crisis. In the end, we're much better off today because of the actions that the Fed can take.

But that has less to do with regulations as Obama is envisioning them. F.e., among other things, Glass-Steagal (the regulations mentioned in Obama's speech) divided investment banks/dealers from banks. The Fed dissolving Bear Stearns and lending to the investment banks shows that when push comes to shove, dividing banks and investment banks/dealers is somewhat an artificial exercise.