Obama Geithner Stimulus: World Economy Broken

On February 12th, a report out of London showed that the world is pessimistic about President Obama’s plans to repair the U.S. economy, or the health of the world economy.

President Barack Obama and Treasury Secretary Timothy Geithner

World-wide, there is no confidence in either Barack Obama or the new Secretary of Treasury, Timothy Geithner. The world markets dislike the Obama stimulus bill as do Conservatives in the U.S.

From London to Shanghai, markets are worried. ECU Group chief economist, Neil Mackinnon, says there “is risk that equity markets will continue to lose ground…”

The raft of grim corporate news in Europe comes as the markets have largely given the thumbs-down to the passing of a $789 billion stimulus bill in Congress and U.S. Treasury Secretary Tim Geithner’s bank rescue plan, which could cost up to $2 trillion. On the Geithner plan, investors worried about the lack of detail, specifically the absence of any indications about how the banks’ toxic assets would be bought.

An Investor’s Business Daily editorial says it even more plainly:

President Obama, a smart man, says that tax cuts for the wealthy are the main reason we’re now in such economic trouble. Someone needs to tell him how utterly — and dangerously — wrong that is.

The Wall Street Journal reports that Hong Kong is extending a “blackout” period by company insiders.

Where does America go from here? We see our 401K’s and money market funds diminished to astonishingly low levels. As I write, the DOW is at 7844.91. In July 2007, the market passed 14,000. An LA Times headline trumpeted the “leap,” saying that the “strength” of the market came from shares of “big-name companies.” Now, those big name companies are disgraced, after Congress forced the issuance of worthless paper mortgages to people unable to pay for their homes.

The world is blaming Barack Obama and with good reason. He was one of the Democratic mafia enabling Fannie Mae and Freddie Mac to abandon all rules of American enterprise, by following decidedly un-America lending policies – even after being warned repeatedly that these institutions would fail if Congress did not take action.

The mess we are in is solely attributable to a Democrat Congress.

Obama Treasury Secretary Timothy Geithner (Photos)