A week ago, the American people voted and made history. Whether or not you agree with the outcome, it will certainly be interesting to see how the first black president responds to a very challenging set of circumstances that face him.
Here are my quick thoughts on the Obama presidency and our current economic situation.
- If I had bumper sticker to suggest how I feel about the election, it would say, “I voted for McCain, but I am praying for Obama.”
- There is no magic bullet for our economy. It took 20-30 years of bad policy to get us here. There is no one person or even party at fault. The only hope for a somewhat speedy recovery is ingenuity and the courage to do the best thing no matter what the public believes is the right decision.
- The media is likely to give Obama a free pass for a while, which may help bolster consumer confidence as reporters look for positive things to report. Note: this doesn’t mean our economic situation is improving even if the media says good things.
- The government will likely keep chasing good money after bad. Bailouts for everyone… except small businesses, non-union shops and reject retailers (Circuit City).
- Obama ran as a new kind of candidate. He presented himself as the first postmodern candidate who would try to work across party lines and develop common sense solutions. That means he will have to be careful trying to push through too aggressive of an agenda. He can only do this if he convinces the American people his reforms are not “socialism” wrapped in an American flag.
- Obama promised to be a different kind of president. But it appears he has selected a Washington insider, a beltway shark, to run the White House in Rahm Emanuel. And those aren’t my words. They were writteny by a major D.C. reporter. Also, it is rumored that Obama will pick many former D.C. heavyweights to fill other top posts. How is appointing a bunch of Washington insiders anything new in government?
- Guns sales have gone through the roof. I guess many people don’t think that Obama will really be favorable to gun owners. Does that mean that Ray Schoenke was wrong about Obama in his radio ads? Or do gun owners just spook easy?
- Obama may have to back off on some of his tax hike plans. Rich people are the only ones buying anything right now.
- Good news – I just paid $1.99 for gas. Wow! I never thought I would be able to say that.
- It looks like inflation is staying in check except for the cost of college tuition. Endowments took a major hit with the recent Wall Street losses.
- In his first 100 days in office, I think Obama will throw some bones to some of his favor backers – that includes abortion rights groups, stem cell researchers, unions and environmental groups. I expect for Obama to reinstitute the ban on offshore drilling. He will make it easier to get federal funding for abortions, and press through reforms intended to help unions form in smaller companies.
- Housing sales should pickup some as more new people enter the market due to depressed prices. This will primarily be first-time home buyers.
- It won’t be a great holiday season for retailers. A number of big names could take a wallop at the register. A few might even go out of business.
- Smart investors will look offshore for opportunities to seek decent returns. Some good stock deals will be available in American companies if you are willing to wait years for a rebound. Overall, economic contagion will impact all economies around the globe even China and the other Asian powerhouses.
- Obama’s election will likely improve U.S. relations with many countries around the globe. It may also cause a few rogue nations to test the resolve of the new president.