Obama on the Economy - U.S. Politics Online: A Political Discussion Forum

CorpMediaSux · #1 (**permalink**) 03-20-2008

Let's take a cue from almost everyone and STOP the discussion on race for a moment. Obama laid out his economic plan today and it's a pretty interesting message. Here are some quotes.

In regards to responsibility on Wall Street

Quote:

"The quick kill is prized without regard to long-term consequences for the financial system and the economy," Obama said to an overflowing room at the NASDAQ market site. "And while this may benefit the few who push the envelope as far as it will go, it doesn't benefit America and it doesn't benefit the market. Just because it makes money doesn't mean it's good for business."

Quote:

Obama cited the subprime mortgage crisis as an example of this problem.

"In theory, this should have allowed mortgage lending to be less risky and more diversified," he said. "But as certain lenders and brokers began to see how much money could be made, they began to lower their standards... Far too many continued to put their own short-term gain ahead of what they knew the long-term consequences would be when those rates exploded. Those consequences are now clear: nearly 2.5 million homeowners could lose their homes."

Quote:

Four Economic Planks
1) create more disclosure and accountability in the housing market by updating the current mortgage rules to prevent fraud and enact tough penalties against lenders who knowingly act in bad faith;
(2) restore trust in the rating agencies by investigating the relationship and business practices of rating agencies and their clients;
(3) fix a lack of transparency problem in other areas in the market by teaching consumers about the risk involved with credit cards;
(4) ask mortgage institutions to help people who are trying to sell or refinance their homes.

On Cost of the War:

Quote:

It also means we’re having to pay for this war with loans from China. Having China as our banker isn’t good for our economy, it isn’t good for our global leadership, and it isn’t good for our national security. History teaches us that for a nation to remain a preeminent military power, it must remain a preeminent economic power. That is why it is so important to manage the costs of war wisely.

And

Quote:

But what no one disputes is that the cost of this war is far higher than what we were told it would be. We were told this war would cost $50 to $60 billion, and that reconstruction would pay for itself out of Iraqi oil profits. We were told higher estimates were nothing but “baloney.” Like so much else about this war, we were not told the truth.

What no one disputes is that the costs of this war have been compounded by its careless and incompetent execution – from the billions that have vanished in Iraq to the billions more in no-bid contracts for reckless contractors like Halliburton.

What no one disputes is that five years into this war, soldiers up at Fort Drum are having to wait more than a month to get their first mental health screening – even though we know that incidences of PTSD skyrocket between the second, third, and fourth tours of duty. We have a sacred trust to our troops and our veterans, and we have to live up to it.

What no one disputes is that President Bush has done what no other President has ever done, and given tax cuts to the rich in a time of war. John McCain once opposed these tax cuts – he rightly called them unfair and fiscally irresponsible. But now he has done an about face and wants to make them permanent, just like he wants a permanent occupation in Iraq. No matter what the costs, no matter what the consequences, John McCain seems determined to carry out a third Bush-term.

chassisman · #2 (**permalink**) 03-20-2008

I'm suprised that he doesn't address the rising cost of energy in his plan. The impact on the cost of consumer goods will have an impact that will far outlast the lending/housing trick bag we are in at the moment. What about incentives for small business to create new jobs? I have heard his blanket statements, but no expanded, detailed version. I'm sure it will all come out, but not until and if he is the nominee.
Like all politicians, I have seen him address the local concern when he speaks in various areas of the country on his campaign tour, but at some point in time he is going to have to answer some hard questions with detailed answers.

TheLastBoyScout · #3 (**permalink**) 03-20-2008

Quote:

Originally Posted by CorpMediaSux

Let's take a cue from almost everyone and STOP the discussion on race for a moment. Obama laid out his economic plan today and it's a pretty interesting message. Here are some quotes.

In regards to responsibility on Wall Street

On Cost of the War:

And

Where's the link all these quotes came from? I'd like to read the complete text.

chassisman · #4 (**permalink**) 03-20-2008

me too.

CorpMediaSux · #5 (**permalink**) 03-20-2008

Quote:

I'm suprised that he doesn't address the rising cost of energy in his plan.

Chassis he didn't in this particular speech, however on his website he has quite a bit of things to say about energy policy.

Quote:

* Invest $150 Billion over 10 Years in Clean Energy: Obama will invest $150 billion over 10 years to advance the next generation of biofuels and fuel infrastructure, accelerate the commercialization of plug-in hybrids, promote development of commercial-scale renewable energy, invest in low-emissions coal plants, and begin the transition to a new digital electricity grid. A principal focus of this fund will be devoted to ensuring that technologies that are developed in the U.S. are rapidly commercialized in the U.S. and deployed around the globe.
* Double Energy Research and Development Funding: Obama will double science and research funding for clean energy projects including those that make use of our biomass, solar and wind resources.
* Invest in a Skilled Clean Technologies Workforce: Obama will use proceeds from the cap-and-trade auction program to invest in job training and transition programs to help workers and industries adapt to clean technology development and production. Obama will also create an energy-focused Green Jobs Corps to connect disconnected and disadvantaged youth with job skills for a high-growth industry.
* Convert our Manufacturing Centers into Clean Technology Leaders: Obama will establish a federal investment program to help manufacturing centers modernize and Americans learn the new skills they need to produce green products.
* Clean Technologies Deployment Venture Capital Fund: Obama will create a Clean Technologies Venture Capital Fund to fill a critical gap in U.S. technology development. Obama will invest $10 billion per year into this fund for five years. The fund will partner with existing investment funds and our National Laboratories to ensure that promising technologies move beyond the lab and are commercialized in the U.S
* Require 25 Percent of Renewable Electricity by 2025: Obama will establish a 25 percent federal Renewable Portfolio Standard (RPS) to require that 25 percent of electricity consumed in the U.S. is derived from clean, sustainable energy sources, like solar, wind and geothermal by 2025.
* Develop and Deploy Clean Coal Technology: Obama will significantly increase the resources devoted to the commercialization and deployment of low-carbon coal technologies. Obama will consider whatever policy tools are necessary, including standards that ban new traditional coal facilities, to ensure that we move quickly to commercialize and deploy low carbon coal technology.

chassisman · #6 (**permalink**) 03-20-2008

Why are them dems hell bent on preventing oil exploration in ANWR? Clean renewable energy is a long term goal, what about reducing our dependance on foreign oil? Its obvious that we will not see the end of fossil fuel use in our lifetimes, so are we doomed to let other countries set the price of oil until realistic alternatives can be implemented?

TheLastBoyScout · #7 (**permalink**) 03-20-2008

Is there a link for this?

I see lots of excerpts, but no hyperlink to the source.

MeadHallPirate · #8 (**permalink**) 03-20-2008

Quote:

Originally Posted by chassisman

Why are them dems hell bent on preventing oil exploration in ANWR? Clean renewable energy is a long term goal, what about reducing our dependance on foreign oil? Its obvious that we will not see the end of fossil fuel use in our lifetimes, so are we doomed to let other countries set the price of oil until realistic alternatives can be implemented?

*hails Chassisman and fills his pipe with his own, special pirate blend*

matey...this be how i be feelin' about that. that oil that be buried in ANWR be part 'o our cash reserves. it be thar, and i got no problem tappin' into that, as long as we, as a nation, make every effort possible to conserve and stretch the oil we currently got. once all them options have been exhausted, heck, if we be needing the oil to survive i wouldnt care if it was in the middle of grand canyon, drill away!

i just would feel sad if that oil in ANWR was tapped just so we could continue down the same, gluttonous path we been travelin' on.

aye.

and yarrr, too!

-meadhallpirate

ps - to CorpMediaSux, sorry for wanderin' off topic.

CorpMediaSux · #9 (**permalink**) 03-20-2008

For the stuff on green energy see: Barack Obama | Change We Can Believe In | Energy

There's much more there than I quoted. I am sure that not all of these goals will be acheived in his presidency. But he is laying down a framework for a "green economy" that I think is about much more than cliamte change. He is, in essence, proposing a way to solve for outsourcing by directing American, well trained, labor to build this green economy infrastructure. Energy corporations are already beginning to move towards wanting to transition to green fuels. If we learn anything from the New Deal it's that when the government and business cooperate on employing people and creating new industry it tends to work MUCH better than when government regulates business. (this is also why Obama's healthcare plan is much better than Clintons which tries to pretend that the insurance industry doesn't exist."

On his comments about the cost of the war you can see the full transcript on his website. Look beyond his campaigns statement to for the full transcript.
Barack Obama : : Change We Can Believe In | Sam Graham-Felsen's Blog: Obama: The War in Iraq Has Burdened American Working Families

On the quotes about Wall Street and irresponsibility, they are quotes from an MSNBC response to the economic address. Unfortunately I have yet to find a transcript of the full economy address (thanks media for sitll only caring about the race speech)

chassisman · #10 (**permalink**) 03-20-2008

Corp, you're up on Obama's issue stances.....doesn't he support a major increase in the inheritance tax? I looked on his web site, but don't have hours to pour over it right at the moment.

SamInTheSouth · #11 (**permalink**) 03-20-2008

Quote:

Originally Posted by chassisman

Corp, you're up on Obama's issue stances.....doesn't he support a major increase in the inheritance tax? I looked on his web site, but don't have hours to pour over it right at the moment.

He and Hillary both voted for a budget last week that will raise taxes on the lower middle class and up if adopted.

Quote:

Obama and Clinton both promise to reverse Bush’s tax cuts for wealthier taxpayers, but the Democratic budget they’ll be voting for would allow income tax rates to go up on individuals making as little as $31,850 and couples earning $63,700 or more.

Chicago Sun-Times

So far as I am concerned anybody who makes over $31,000 a year and votes for Obama or Hillary apparently hates their paycheck.

chassisman · #12 (**permalink**) 03-20-2008

Quote:

Originally Posted by SamInTheSouth

He and Hillary both voted for a budget last week that will raise taxes on the lower middle class and up if adopted.

So far as I am concerned anybody who makes over $31,000 a year and votes for Obama or Hillary apparently hates their paycheck.

I know this, you know this, but damn he gives a good speech, doesn't he! Poor Hillary has reduced herself to countering his rhetoric.

Hudson · #13 (**permalink**) 03-21-2008

Well Corp, glad you shifted the poltiical debate.

As for Obama and the economy, he is not offering anything new that is already out there. In essence, nothing new, nothing substantive.

For instance:

Quote:

1) create more disclosure and accountability in the housing market by updating the current mortgage rules to prevent fraud and enact tough penalties against lenders who knowingly act in bad faith;

Well, disclosure is fine, but the problem is it will create more paperwork and verification through the state and federal regulatory agencies. Furthermore, it will cost more from the borrower's perspective. Finally, the borrower will still not know what all this stuff means when they sign the 5000 pieces of paper at time of closing.

Quote:

2) restore trust in the rating agencies by investigating the relationship and business practices of rating agencies and their clients

So, now we create a new government bureaucracy to watch the watchdog's? It sounds nice on paper or in a speech, but again, it will not amount to much.

Quote:

(3) fix a lack of transparency problem in other areas in the market by teaching consumers about the risk involved with credit cards;

This is fine, There are a host of companies out there, not to mention the thousand or so advice columns in the newspapers and on the internet, the books, and FTC, local housing agencies, etc, that teach, offer pamphlets, and advise on how to maintain good credit. You even get people and companies who advertise on how to get rid of bad credit. But it will boil down to what the consumer will do and not do.

Quote:

(4) ask mortgage institutions to help people who are trying to sell or refinance their homes.

Mortgage companies already do this. If you get behind on payments, they will offer ways to make up those payments. If you need to sell, they do provide a list of real estate companies who wold sell the house. Some options available are short sales, in lieu of foreclosure, bankruptcy, if you qualify, and other options.

Again, nothing new here. Nothing substantive.

jviehe · #14 (**permalink**) 03-21-2008

Quote:

Originally Posted by CorpMediaSux

Let's take a cue from almost everyone and STOP the discussion on race for a moment. Obama laid out his economic plan today and it's a pretty interesting message. Here are some quotes.

In regards to responsibility on Wall Street

On Cost of the War:

And

NOthing new. Blame the rich, blame Bush. I dont see any change here.

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