What 2010 Means for 2012

The 2010 election reflected the anger of the American voters towards the Obama Administration, Congress, the Fed, Washington lobbyists, Wall Street, and Fannie and Freddie—just about everybody except Jack Bauer. The People have spoken and they are pissed—and they want Washington to know it. Now Washington does know it. But is anything important going to happen to make businesses hire and banks lend? Probably—but it will have only a little to do with the election.

Business is getting better now. Retail had a good “back to school” season, and it’s predicted that Christmas will be fine. Cars are selling decently in the U.S. at the new normal of 11-12 million units. Industrial is doing nicely, thank you, just look at Grainger’s stock price. Inflation has evaporated. McDonald’s, Panera Bread and Chipotle’s Mexican chain are thriving. The stock market is up 80 percent from the bottom—yet everyone’s still pissed.

And they should be, because unemployment is 9.5 percent, shadow unemployment is 15 percent, and three million people will soon see their weekly safety net checks expire. Housing is a pit because of unemployment, banking paralysis and a gaping oversupply.

But the situation will be getting better in 2011 and 2012 because businesses will be able to show healing statements to whipsawed lenders. They will start to loan money for expansion, which may actually lead to additional hiring.
Individuals will have money in their 401(k)s and savings accounts, which will make cars and houses buyable again. The economy will start growing briskly, and the politicians will take the credit—which they do not deserve.

I believe Barack Obama watched the election returns with ambivalence. They showed that the voters repudiated his policies, but they gave him political cover to move to the center, like Bill Clinton did in 1994. I think he must feel a lot like Brer Rabbit in the Uncle Remus stories.

For Obama, getting shellacked was being thrown into the briar patch. As loudly as he moaned, legislative gridlock and a recovering economy are putting him in a fortuitous position going into 2012, and ready for a dream one-on-one matchup with the feisty lady point guard from Alaska.

Question: Do you think Obama will have a similar political fate as Bill Clinton in 1994?

SHARE THIS

Share this post

9 thoughts on “What 2010 Means for 2012

  1. AvatarDaniel Richter

    No…Obama is an idealogue. Bill Clinton is a politician. Obama will likely dig in. His press conference yesterday basically indicated that. We The People are just too stupid to know how much good he’s doing for us.

     
  2. AvatarCharles F. Somers

    Obama sold those that didn’t know any better a bill of goods he couldn’t deliver. Now our children will be paying for his extravagant spending for generations to come.

     
  3. Avatargene mcquinn

    If he does the same thing Clinton did and move to the center and the other party will work with him and not be intent on just trying to destory him, I think we the American people will benefit. If they go into grid lock nobody will win.

     
  4. AvatarCharlie Kerr

    The Dems have tried to divide the nation along lines of people with wealth or lack of. What this election shows is that they are now reaping what they have sowed. Instead of class warfare between the rich and not so rich, it is now the people who produce wealth vs. the people who produce nothing and exist solely off the consumption of the other’s production. Those who produce (private sector) are becoming increasingly less comfortable with their living standard while those who consume (public sector) are becoming more comfortable. It took Obama’s hard turn to the left to wake up enough people to what’s really been going on for the past 45 years or so. It’s not so much a change in the way people are thinking as much as it is a change in how people who accept responsibility for their lot in life are starting to understand why their living standards are being eroded.

     
  5. AvatarDaniel Richter

    Gene, Gridlock is exactly what we need. When Washington doesn’t get anything done, we all benefit. In this case, the best thing would be to get things un-done. I’m no marketing genius, but I think the Republicans should have run on being the “Party of No”. No Health Care Takeover, No Cap & Trade, No Tax increases, No additional regulation, No more spending, etc.

     
  6. AvatarJack Frost

    Lloyd: Not on your life unless she gets a massive injection of facts. I do not cite knowledge, because knowledge denotes wisdom. She is a great lady and I love what she has done. But we don’t substitute cheer leading for glib this time. My side won and we want to build. As a 90 year old I haven’t got much time and much less for tomfoolery. Jack Frost

     
  7. AvatarJohn

    Let’s hope he and America has the same fate as President Clinton and America did after the Dems lost in 1994. After that we had very nice growth for the next 6 years, the stock market gained and and we had surpluses. Then of course the Republican Bush II got in and we got screwed.
    So I’m with you. Let Obama come to the center and lead us to prosperity again!

     
  8. AvatarMyles

    Dear Lloyd,
    Your political comments show an inability to remember or retain facts for longer than 2 years. We are in this mess because of previous administrations. If you cannot reason any better than shown, please remove my name from your advertisements and small minded email comments.

     

Comments are closed.