osewalrus (osewalrus) wrote,

For My Despondent D Friends - How Obama Can Fight Back

This from Financial Times. It requires Obama to do what he did after losing in TX and then making a predictable showing in PA -- rethink and get back into the fight with something that works.

If Dems are smart, they will steal the populist crown back from the Rs with a raft of financial reforms (the new proposed bank fee, which sank from press attention for the juicier horse-race stuff in MA and over health care, is one example). With Chris Dodd now free to vote his conscience, and Frank in charge on the house side, a full-court press against "Wall St fat cats" who "acted irresponsibly" will resonate and force Rs to defend the people who they now claim to oppose as recipients of hand outs. While this will invariably be attacked as "nationalizing the banks" and "socialism," an Obama/DNC that exercises some political acumen (sadly missing since Rahm and the boys took over from the Obama Campaign people) and warns that a return to "mindless deregulation" where the "cop was asleep at the switch" could at least revive the flagging D base.

Mind you, Ds being Ds, I expect them to go the reverse direction, in which case we can look forward to stagnation (with perhaps modest inflation) for this year, followed by a surge in stock valuation and merger activity in 2011 after Rs take over Congress, followed by a major crash in 2012 (because we simply don't have the capacity to survive the sort of mishandling of the economy we suffered from 1995-2008). Tax cuts to stimulate growth are phenomenally ineffective, and we do not have a culture in this country wherein the largest industrial interests will agree to limit their short-term profit to stabilize a political/economic situation in the long term.

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