[econjack]

From what I've seen thus far, I sure hope somebody forces Obama to sit through ECON 101 sometime soon because he is absolutely clueless how the economy works. Given that, his economic advisers are going to be critical appointments as he doesn't know enough about economics to formulate policy. A bad omen was that he used Franklin Raines as his chief economic adviser during the campaign...you know, the guy who was the head of Fannie Mae, cooked the books, paid himself $90 million in bonuses, got caught despite the best efforts by Maxine Waters (et al), paid a $1 million fine (still sounds like a sweet deal to me), and then gets tucked under Obama's wing as a political adviser.

Deep trouble ahead, people...deep trouble...

[sickoflibs]

First we had 1) supply side economics (has this ever been tried?), then 2) trickle down which I guess is massive government spending and growth with income tax cuts, increasing revenue but even bigger deficits, and bailout of investors which leads to : 3) (spring 2008 stimulus and Obama)= welfare check economics, government borrows money to send out welfare checks to ‘those that need it’, who buy cheap Chinese stuff.

I think that #3 buys democrats elections and republican losses, at least pre-2009.

No one knows what the future holds, or do they? It looks like celebrated investor Peter Schiff might have a crystal ball.

Video of Schiff when he predicted this disaster.

http://www.youtube.com/watch?v=2I0QN-FYkpw

The Prediction

http://www.cnbc.com/id/27823932