NYT: How Obama Saved Capitalism and Lost the Midterms

[Pirate Smile]

How Obama Saved Capitalism and Lost the Midterms

If I were one of the big corporate donors who bankrolled the Republican tide that carried into office more than 50 new Republicans in the House, I would be wary of what you just bought.
For no matter your view of President Obama, he effectively saved capitalism. And for that, he paid a terrible political price.

-snip-
Saving the American auto industry, which has been a huge drag on Obama’s political capital, is a monumental achievement that few appreciate, unless you live in Michigan. After getting their taxpayer lifeline from Obama, both General Motors and Chrysler are now making money by making cars. New plants are even scheduled to open. More than 1 million jobs would have disappeared had the domestic auto sector been liquidated.
“An apology is due Barack Obama,” wrote The Economist, which had opposed the $86 billion auto bailout. As for Government Motors: after emerging from bankruptcy, it will go public with a new stock offering in just a few weeks, and the United States government, with its 60 percent share of common stock, stands to make a profit. Yes, an industry was saved, and the government will probably make money on the deal — one of Obama’s signature economic successes.

-snip-
Obama can recast himself as the consumer’s best friend, and welcome the animus of Wall Street. He should hector the companies sitting on piles of cash but not hiring new workers. For those who do hire, and create new jobs, he can offer tax incentives. He should finger the financial giants for refusing to clean up their own mess in the foreclosure crisis. He should point to the long overdue protections for credit card holders that came with reform.

And he should veto, veto, veto any bill that attempts to roll back some of the basic protections for people against the institutions that have so much control over their lives – insurance companies, Wall Street and big oil.
They will whine a fierce storm, the manipulators of great wealth. A war on business, they will claim. Not even close. Obama saved them, and the biggest cost was to him.

http://opinionator.blogs.nytimes.com/2010/11/02/how-obama-saved-capitalism-and-lost-the-midterms/

[stray cat]

1. Did he also save the economy and many peoples jobs and unemployment benefits?

[mzmolly]

6. Yes.

He did.

[Blue_Tires]

16. uh, its the GOP that had been blocking unemployment extensions

[tridim]

2. "Obama can recast himself as the consumer’s best friend, and welcome the animus of Wall Street"

THAT is a great idea!

[Pirate Smile]

4. Well, I hear he has an election coming up (relatively) soon. I bet he just might try it.

:)

[lonestarnot]

11. He's nothing to lose from it.

[4lbs]

3. Not even people in Michigan appreciated saving the auto industry. They elected a Repug for Governor

Yeah, I'm sure that new RepubliCorp Governor will be friendly to the Detroit auto worker.

I'm sure that the RepubliCorp Governor will indeed care about the homeless, unemployed, poor, needy people in Michigan.

I'm sure that the RepubliCorp Governor will use federal funds properly and for their intended purpose(s).

I'm also sure that most of the 58% of Michigan voters will quickly come to have a "aw crap, what did I just do?!?!?" moment in the first 6 months of 2011.

[girl gone mad]

9. Probably because in order to save the industry..

the workers were sold out.

[impik]

5. How America is so stupid and racist to even understand what a great president it got

[Cha]

7. Yes, President Obama has

Veto Power against stupid action by the gops.:bounce: :patriot:

[niceypoo]

8. Supply side isnt capitalism

He saved supply side and lost the midterms

[GeorgeGist]

The lesson should be clear ...

saving capitalism endangers jobs.

[GeorgeGist]

10. The lesson should be clear ...

saving capitalism endangers jobs.

[LeftyAndProud60]

12. If Obama's team was smart they'd have a ceremony for GM going public. NT

[jaysunb]

18. It wouldn't be reported.

Just like the repayment of taxpayer money was only mentioned as footnotes. :shrug:

[girl gone mad]

13. Since when have we had capitalism in the United States?

Allowing for failure is an essential element of capitalism.

Preventing banks engaged in Ponzi scheme frauds and corporations with archaic business models from rightful bankruptcy is the opposite of capitalism - it's Corporate Communism, or to borrow Orwell's phrase, Oligarchical Collectivism.

We all would have been better off if the banks had been put into receivership and the fraud had been rooted out. Obama took the easy road and the country will be paying the price for decades.

[malletgirl02]

14. Like FDR Obama save their asses

Note I'm not saying Obama is as great as FDR. It is just that it is often said that his New Deal policies which were much maligned by business interests save capitalism, and kept the US from falling into Revolution.

[Blue_Tires]

15. Persona non grata...

I just hope the next time Wall Street is in a bind, the nation as a whole tells them to choke on it...

[Pirate Smile]

17. I hope CNBC & the Wall Street media crowd pointed out that the top answer for who is to blame for

the state of the economy is *** Bankers ***, followed by Bush. Below those two is Obama - Bankers (34%), Bush (29%), Obama (24%). Somehow I doubt they focused on it very much though.

[Pirate Smile]

19. kick

[Nancy Waterman]

20. kick

Very good article!

[SunsetDreams]

21. kick