Too Little, Too Late: Amends from a Recovering Liberal

Although a little too late for my tastes (in consideration of the current political structure), I find this a little too late but still worth the read:

Dear friends, family, loved ones, conservatives, Republicans, libertarians, my brother in law, Sam, and my cousin Joe: I am sorry and you were right.

These are not easy words for anyone to utter, much less a leftist from Berkeley, or a recovering leftist, that is. Even though I’ve been in recovery for 14 months, 2 weeks, and 3 days, leftists are always right in your face, in an I-hate-you-if-you-disagree sort of way. Hence, this letter of amends to all the people I’ve lectured, scolded, ranted and raved at, and otherwise annoyed during my 30 plus years of “progressive” politics.

My recovery program urges a fierce moral inventory, a cleansing of heart and mind (kind of like a “forgiveness tour” but without the scary dictators), so here goes:

How Does Obama’s Bullying of Investors Affect America?

A pithy observation:

Does Obama’s bullying of investors portend real problems for the US?
Johnathan Pearce (London) Globalization/economics • North American affairs

I have not written about the subject of the Chrysler bailout so far since, not being close to the action in the US, I did not feel I had much to say that was not already voiced by the US blogs. But it does occur to me that there is a general problem right now in the way that the US administration – and arguably the UK one as well – has been acting in respect of bailouts of certain industries, such as carmakers as well as banks. What do I mean? Well, this report (H/T: Instapundit) suggests there is real fear about the “Nixonian” tactics employed by Mr Obama’s administration against bond-holders who have been angered by the expropriation of their capital via the Chrysler bailout.

For those who have not been following this story, bond-holders have been pushed to the back of the queue, as far as potential recovery of capital is concerned, with the auto union membership getting preferential treatment. Maybe Mr Obama figures that investors can be rained on right now because it is more important to get the votes and support of traditionally Democrat-leaning car workers. With mid-term Congressional elections a couple of years away, he will have his sly, Chicago machine-politics mind working out how to garner important support in the event that the US economy is still sluggish by that time. But pissing off investors – such as, let it be noted, pension funds – is not smart. The US requires large amounts of capital for any economic recovery that may take place. Ask yourself one of the most basic questions any investor should ask: can I get my money back if I need to? If the answer is no or only maybe, and if there is the threat of governments robbing investors, then less investment occurs. The problems of such behaviour explain why, for example, Africa has been such a bad investment bet for so many years.

It is an ugly business. Part of the trouble with the automakers is that even if they had been put into a Chapter 11 bankruptcy process, with the banks and bondholders put on a more even footing for any recovery of assets, there is still the issue of what to do about the enormous unfunded pension obligations that these heavy industrial companies have. It is the same with airlines and steel. I have heard it said of British Airways – to take a UK example – that is is a pension scheme that happens to have a lot of aircraft. The pension tail can wag the corporate dog. And that is a hideous issue to deal with against the background of an ageing population. So in fairness to US policymakers, running down Chrysler involves dealing with a lot of tricky contractual issues.

Even so, it strikes me that the Obama administration is showing a level of political ruthlessness and “bugger-the-investor” attitude that is hardly going to endear people towards investing in that economy. My fear is that Mr Obama is making the cynical calculation that memories will fade; after all, how many investors in the UK remember how the Blair government, in the form of the charmless Stephen Byers, the-then industry minister, shafted investors in Railtrack?

Like I said, an ugly business.

Obama’s Supporters Surprised He’s a Class Warrior (duh)

So…those who voted for (D) during the 2008 Presidential race were voting for a Dumbass?

Among those affected by such changes would be some of Mr Obama’s most powerful supporters in the election, such as Eric Schmidt, Google’s CEO, and other “Silicon Valley” executives whose profits are mostly made abroad. They were taken aback when the President blasting companies for “shirking” their responsibilities by avoiding tax.

New York Democratic congressman Joseph Crowley said closing the loophole would hurt Citigroup Inc., his New York district’s largest employer.

It has also dawned on wealthy Americans who flocked to the Obama campaign of “Hope” and “Change” that the president opposes the “trickle down” theories that have guided US economics since President Ronald Reagan was elected with a mandate to slash taxes.

He warned that by the time he was done with them, Silicon Valley and Wall Street would remain large parts of the US economy, but not “half of our economy”.

Public Perceptions of Obama since Sept. ’08

People’s impressions of Obama – in one word:

Some Democrats Dissent on Obama’s Spending Agenda

Democratic leaders in Congress did not expect much Republican support as they pressed President Obama’s ambitious legislative agenda. But the pushback they are receiving from some of their own has come as an unwelcome surprise.

As the Senate inches closer to approving a $410 billion spending bill, the internal revolt has served as a warning to party leaders pursuing Obama’s far-reaching plans for health-care, energy and education reform.

Those goals, spelled out in Obama’s 2010 budget blueprint, continue to enjoy broad Democratic support. But as the ideas develop into detailed legislation, they will transform from abstract objectives into a tangle of difficult trade-offs. Crop subsidies, the student loan program and Medicare radiology rules are all currently niche concerns, but any one could become the next crisis for party leaders, with the potential to derail a major agenda item. One major proposal, to limit itemized deductions for wealthy taxpayers, has already raised doubts among prominent Democrats in both chambers.

Former Obama Supporters?

PETER ROBINSON ON the disillusionment of the Obamacons. “The elite journalists, I repeat, got Obama wrong. The troglodytes got him right. As our national drama continues to unfold, bear that in mind.”

UPDATE: George W. Obama?

MORE: A.P.: Obama Recovery Plans Sowing Unease. “Although the administration likes to say it ‘inherited’ the recession and trillion-dollar deficits, the economic wreckage has worsened on Obama’s still-young watch.”

STILL MORE: Obamacons as Otter.

MORE STILL: A reader emails: “Obamacons aren’t Otter ….they’re Flounder. Obama is Otter.” Well, they’re both — as relates to Obama, they’re Flounder. As relates to anyone who believed their stuff, they’re Otter.