Wall Street Weekly | 06/26/2009 10:20 am
Keep Bernanke; Dump Energy Bill, by Liz Peek

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Bears, Bulls, Chickens and Pigs: wOw’s Wall Street Weekly with Liz Peek (Week of 6/22)
Editor’s Note: Liz Peek is a financial columnist and the author of wOw’s SHEconomics.
Was Thursday’s market gain of 172 points a Ben Bernanke rally? After several days when green shoots (a 1.8% jump in May durable goods orders, a drop in layoff announcements, lower house inventories) were trampled by worrywarts like me focusing on rising budget deficits and a veritable blizzard of legislation from President Obama, the market shot up on the heels of Fed Chair Bernanke’s firm testimony to Congress that no, he hadn’t threatened to fire Ken Lewis. The Bank of America CEO says that Bernanke and others bludgeoned him into completing the acquisition of Merrill Lynch last year even though ballooning losses at the giant broker made the deal less appetizing. (Come on – you have to admit this "he said/he said" is almost as riveting as Governor Sanford’s e-mails to the mysterious Maria – yes?)Sometimes I have a hard time distinguishing between congressional hearings and "Saturday Night Live." Entertainment value aside, what’s important here is that it was a darn good thing that Bank of America bought Merrill. Americans really do have collective ADD; remember that investors rushed to pull $5 trillion out of money-market funds when Lehman collapsed, deciding that cash under the mattress was a better bet than triple-A rated securities. Imagine if Merrill had followed suit. Mother Merrill, as it has been called, is not only one of the biggest retail brokers in the country, it is also a global symbol of U.S. financial prowess. It could not have been allowed to fail.
In my view, and more importantly in the view of Jack Welch, Warren Buffett and other financial heavyweights, Bernanke has been a steady and intelligent hand on the tiller. Our economy is stabilizing for one reason only: the most enormous stimulus program of all time. The many measures taken by Bernanke (predating and including the Stimulus Bill) have kept the doors open for business.
Judging from the milquetoast comments he made at his press conference the other night, President Obama sounds ready to throw Bernanke overboard when his term expires next January. My worry is that the only way Obama got the ambitious Larry Summers to join the White House economic team, in effect working for his once-junior partner Treasury boss Tim Geithner, is by promising him Bernanke’s job. This would be bad news. Why?
Investors worldwide must have absolute confidence in our economic leadership, and in the independence of the Fed (whether or not its portfolio is expanded). The administration is throwing one giant program after another at Congress, nearly all of which lead to vast amounts of spending, rising budget deficits and the reordering of the U.S. economy. The Waxman-Markey Energy Bill, otherwise known as the American Clean Energy Security Act (or the Whackman-Malarkey Bill by some wags), is likely to be rushed by Speaker Pelosi to the House floor today. Though the CBO has described the bill’s cost to the average American family as benign (only $175 per year), that assessment takes into account only one fraction of the 1,200-page bill. Other studies, such as that prepared for the Black Chamber of Commerce, says the legislation will cost the United States over two million jobs annually (net of "green" jobs) and reduce GDP by $170 billion in 2015 and $350 billion in 2030. Others put the impact even higher.
One reason the CBO’s interpretation is so modest is that the agency assumes the government will recycle the resulting $846 billion in revenues (this figure is from Congressman Markey and reflects the huge tax about to be levied on U.S. industry) back to consumers. Think about that. In a period when deficits are expected to skyrocket, do we seriously expect that all these revenues will be happily funneled back to taxpayers? I do not.
Read more about: Bank of America, Barack Obama, Ben Bernanke, Business, China, Economy, Finance, India, Jack Welch, Ken Lewis, Larry Summers, Lehman Brothers, Liz Peek, Mark Sanford, Merrill Lynch, Money, Nancy Pelosi, News, Real Estate, Science and Public Policy Institute, Steven Chu, Stimulus Bill, Tim Geithner, Wall Street Weekly, Warren Buffett, Waxman-Markey Energy Bill























598 Reader Comments (so far…) Sign In or Register to comment
The whole point of cap and trade is to hike the price of electricity and gas so that Americans will use less. These higher prices will show up not just in electricity bills or at the gas station but in every manufactured good, from food to cars.
Consumers will cut back on spending, which in turn will cut back on production, which results in fewer jobs created or higher unemployment.
Some companies will instead move their operations overseas, with the same result…Americans should know that those Members who vote for this climate bill are voting for what is likely to be the biggest tax in American history.
Even Democrats can’t repeal that reality. More Obama control. Wake up America.
fp, if you are okay with massive government control for America then your point is well taken. If you aren’t, and many millions of Americans aren’t then you will read and hear the concerns of Americans across our country. I am a realist first and what I see is government control across the board and Obama is just getting started. He has a left leaning socialist agenda and a vision to model our great country after failed European socialist programs. It doesn’t take a rocket scientisst to figure that out. In his own words, he admitted that. So, buckle your seat belt and get your wallet out on the counter because it is no longer the rich he looks to but he is now "in your face" to our middle class, where he intended to be all along in my opinion.
Caveats: NONE
Charles Krauthammer on Obama.
My friend went to hear Charles Krauthammer. He listened w/25 others in a closed room. What he says here, is NOT 2nd-hand but 1st. This is VERY serious for the direction of our country, ramifications staggering for us & our children.
Subj: Charles Krauthammer Speech/Comments on the ‘New Economy & Barack Obama To friends & associates:
Last Monday was a profound evening, hearing Dr. Charles Krauthammer, M.D., speak to the Center for the American Experiment. He is a brilliant intellectual, seasoned, articulate, forthright & careful in analysis. He never resorts to emotions or personal insults, is neither a fear monger nor an extremist in his comments & views; a fiscal conservative, he holds a Pulitzer Prize. A frequent contributor to Fox News, he writes weekly for the Washington Post. The entire room was held spellbound during his talk. Even two Dems at my table agreed w/ everything he said! If you feel like forwarding this to those who are open minded & have not ‘drunk the Kool-Aid’, feel free. Here is his resume from Wikipedia: http://en.wikipedia.org/wiki/Charles_Krauthammer
I’ve given a summary of his comments:
1. Mr. Obama is an intellectual, charming individual, not to be underestimated. He is a ‘cool customer’ who doesn’t show his emotions. It’s very hard to know what’s ‘behind the mask’. Taking down the Clinton dynasty by a political neophyte was an amazing accomplishment. The Clintons still do not understand what hit them. Obama was in the perfect place at the perfect time.
2. Obama has political skills comparable to Reagan & Clinton. He has a way of making you think he’s on your side, agreeing w/ your position, while doing the opposite. Pay no attn. to what he SAYS; rather, watch what he DOES!
3. Obama has a ruthless quest for power. He did not come to Washington to make something out of himself, but rather to change everything, incl. dismantling capitalism. He can’t be straightforward on his ambitions, as the public would not go along. He has a heavy hand, & wants to level the playing field’ w/ income redistribution & punishment of the achievers of society. He would like to model the USA to Great Britain or Canada.
4. His 3 main goals are to control ENERGY, PUBLIC EDUCATION, & NAT‘L HEALTHCARE by the Fed. govt. He doesn’t care about the auto or financial services industries, but got them as an early bonus. The cap & trade will add costs to everything & stifle growth. Paying for FREE college education is his goal. Most scary is healthcare program, because if you make it FREE & add 46,000,000 people to a Medicare-type single-payer system, the costs will go thru the roof. The only way to control costs is w/ massive RATIONING of services, like in Canada. God forbid.
5. He’s surrounded himself w/ mostly far-left academic types. No one around him has ever run even a candy store. But they’re going to try & run the auto, financial, banking & other industries. This obviously can’t work in the long run. Obama’s not a socialist; rather a far-left secular progressive bent on nothing short of revolution. He ran as a moderate, but will govern from the hard left. Again, watch what he does, not what he says.
6. Obama doesn’t really see himself as President of the USA, more as a ruler over the world. He sees himself above it all, trying to orchestrate & coordinate various countries & their agendas. He sees moral equivalency in all cultures. His Apology Tour in Germany & England was a prime example of how he sees America, as an imperialist nation that has been arrogant, rather than a great noble nation that has at times made errors. This is the 1st President ever who has chastised our allies & appeased our enemies!
7. He’s now handing out goodies. He hopes that the bill (& pain) will not ‘come due’ until after he’s reelected in 2012. He’d like to blame all problems on Bush from the past, & hopefully his successor in the future. He has a huge ego, & Dr. Krauthammer believes Obama is a narcissist.
8. Republicans are in the wilderness for a while, but will emerge strong. We’re ‘pining’ for another Reagan, but there’ll never be another like him. He believes Mitt Romney, Tim Pawlenty & Bobby Jindahl (except for his terrible speech in Feb.) are the future of the party. Newt Gingrich is brilliant, but has baggage. Sarah Palin is sincere & intelligent, but needs to really be seriously boning up on facts & info if she’s to be a serious candidate in the future. We need to return to the party of lower taxes, smaller govt., personal responsibility, strong nat’l defense, & states’ rights.
9. The current level of spending is irresponsible & outrageous. We’re spending trillions that we don’t have. This could lead to hyper inflation, depression or worse. No country has ever spent themselves into prosperity. The media is giving Obama, Reid & Pelosi a pass because they love their agenda. But eventually the bill will come due & people will realize the huge bailouts didn’t work, nor will the stimulus pkg. These were trillion-dollar payoffs to Obama’s allies, unions & the Congress to placate the left, so he can get support for #4 above: Gov’t control of ENERGY, PUBLIC EDUCATION, & NAT‘L HEALTHCARE.
10. The election was over in mid-Sept. when Lehman brothers failed. Fear & panic swept in, we had an unpopular President, & the war was grinding on indefinitely w/o a clear outcome. The people are in pain, & the mantra of ‘change’ caused people to act emotionally. Any Dem would have won this election; it was surprising it was as close as it was.
11. In 2012, if the unemployment rate is over 10%, Republicans will be swept back into power. If it’s under 8%, the Dems continue to roll. If it’s between 8-10%, it’ll be a dogfight. It’ll all be about the economy. I hope this gets you really thinking about what’s happening in Washington & Congress. There’s a left-wing revolution going on, according to Krauthammer, & he encourages us to keep the faith & join the loyal resistance. The work will be hard, but we’re right on most issues & can reclaim our country, before it’s far too late.
Thanks Deber…that is perfect…if everyone here just read Krauthammer, we would be on the right track in our dicussions. He is a brilliant and observant man.
He is no Limbaugh or Hannity.
Let the Obamaites deal with Krauthammer and debuke his assessments.
Kelly…hello there….none of the libs can come on and debunk Krauthammer….there is no way…Juan Williams tries almost every night on Bret Baier and he can’t hold a candle to him….he is way to respected by both parties. Charles Krauthammer was honored with the Eric Breindel Award for Excellence in Opinion Journalism, given annually by News Corp in honor of former New York Posteditorial writer Eric Breindel. I was so happy for him…well deserved award. You have a great evening.
Kelly, check this out:
"A top Republican senator has ordered an investigation into the Environmental Protection Agency’s alleged suppression of a report that questioned the science behind global warming.
The 98-page report, co-authored by EPA analyst Alan Carlin, pushed back on the prospect of regulating gases like carbon dioxide as a way to reduce global warming. Carlin’s report argued that the information the EPA was using was out of date, and that even as atmospheric carbon dioxide levels have increased, global temperatures have declined.
"He came out with the truth. They don’t want the truth at the EPA," Sen. James Inhofe, R-Okla, a global warming skeptic, told FOX News, saying he’s ordered an investigation. "We’re going to expose it."
The controversy comes after the House of Representatives passed a landmark bill to regulate greenhouse gas emissions, one that Inhofe said will be "dead on arrival" in the Senate despite President Obama’s energy adviser voicing confidence in the measure. "
There’s more….
http://www.foxnews.com/politics/2009/06/29/gop-senator-calls-inquiry-supressed-climate-change-report/
Hey Sharon….I am afraid that for many that were fooled by Obama…it will take him telling them from his own mouth that he is an authoritarian socialist. By then, they will be so invested that they will just think that is peachy.
If ANY of his early papers could be made public, the people would see just what he is up to…but of course…ANY papers written by Barry are no where to be found…
There is a reason for that….why don’t the silly people ever question those things??
Because….. their egos are as far gone as his……..