Obama the disappointment of the left? In a reflective mood last week, President Barack Obama spoke candidly to msnbc’s Chris Matthews about the challenges of being commander in chief and the legacy he will leave behind - click here. Above all, he urged young people not to lose faith in the notion that government could genuinely improve Americans’ lives. Reading the Blogosphere this weekend, this story came out on top as a key takeaway point this weekend. Obama said some amazing things that we can use in our fundamental view of the coming few years of politics, economy and the markets.
For almost a decade now, Chris Matthews has served as a barometer for baby-boom progressives’ attitude toward Barack Obama - from the “thrill” that went up his leg when he heard the presidential candidate speak in 2008 to the utter disappointment following last October’s debate in Denver. But listening to Mathews describe his feelings now about Obama, even Mr. Thrill Matthews said he felt sadden after the interview. Why?
Recently Obama has been on a campaign to attack the great wealth divide issue in America, calling it the issue of our time. And yet, what are his proposals? Minimum wage increases and more education grants, along with a few other minor proposals. Hardly, hard hitting solutions. I think he had four items he keeps stumping for but nobody can remember them. Obama came into office on a big hope and change agenda - and yet we get incremental changes at best.
In the interview with Matthews, Obama all but admitted that he is an incrementalist and not a transformationalist. This is what he will focus on in his remaining 3 and 1/2 years in office. Chief cheerleader Matthews for Obama would not even challenge this view point. Is this what the people that voted for Obama wanted? Yes it is understanding why Matthews was saddened after the interview. Hope and change, yet things remain the same.
As traders we know that politics and economy often get mixed, due to the subsequent economic policies that will come. This intervew clearly means that no political risks are inherent in the current economic agenda. It’s steady as she goes. The economy will rise or fall based upon the current policies. The real risk comes in 2016, remembering that markets however will anticipate 12 to 18 months ahead of time. If the economy does not improve significantly at the main street level soon (12 months), the electorate will demand change, adding significant political market risks for late 2014 and 2015.
Blue Point Trading, William Thompson