By Deep Wall Street
President Obama met with his august council of outside economic advisors, headed by Paul Volcker, on Wednesday. Thanks to the White House press office, we got our almost daily dose of optimism: POTUS told his advisers that the economy is undergoing a “return to normalcy.” No doubt they felt better and went out and bought some bank stocks, just like every mutual fund manager in the country, further fueling the “stress test rally.”
Is it all–the economic recovery, that is–really just about confidence? Maybe Treasury Secretary Tim Geithner is on to something. His predecessor, Hank Paulson, who supposedly knew a lot about the markets from his decades at Goldman Sachs, nonetheless had an uncanny tin ear when it came to reassuring the financial world.
That is, Paulson’s plan of telling Congress that he needed $700 billion to bail out his Wall Street pals, or the New Great Depression will hit–and then watching cluelessly as Congress voted it down, the first time around–was not a good confidence-building strategy.
more in:
http://foxforum.blogs.foxnews.com/2009/05/23/deep_wall_street_obama_geithner/
Ruin-Nation
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