Showing posts from March 4, 2009

Not all economists are Keynesians

Business Times - 05 Mar 2009 Not all economists are Keynesians Many economists, including Nobel laureates, disagree with the Obama administration's economic recovery strategy By LEON HADAR WASHINGTON CORRESPONDENT PRESIDENT Barack Obama has insisted that the majority of mainstream American economists support the general premises underlying his economic policy and, in particular, the notion that the federal government should have a central role in stimulating the economy and helping end the recession. 'There is not disagreement that we need action by our government, a recovery plan that will help to jumpstart the economy,' Mr Obama said on the eve of his inauguration in January. Indeed, the conventional wisdom these days is that, frightened by the recession and the credit crunch that produced it, 'most economists' are now embracing public spending to repair the damage, including many of those economists who have long resisted a significant government role in a market

Is Obama alienating Wall Street?

Business Times - 05 Mar 2009 NEWS ANALYSIS Is Obama alienating Wall Street? And is Wall Street sabotaging the president's policies? By LEON HADAR IN WASHINGTON WALL Street has not given a welcome shout to US President Barack Obama. The Dow Jones Average has dropped almost 1,500 points since Mr Obama's inauguration a little more than a month ago, and nearly 3,000 points since his election on Nov 4. But Mr Obama seemed to be shrugging off the bearish mood in the markets on Tuesday, urging Americans to look past the decline on Wall Street. 'The stock market is sort of like a tracking poll in politics,' he said. 'You know, it bobs up and down day to day,' he insisted. 'And if you spend all your time worrying about that, then you're probably going to get the long-term strategy wrong.' Playing the role of the nation's chief investment analyst, the president suggested that Americans should consider buying some bargain stocks. 'Profit-and-earning rat