Uh oh?

It has to be said. If Obama can't cap the job losses, his presidency will be a colossal failure. And if you think it's getting bad now, imagine what the next buffoon will do . . .

Message to the President: forget tomorrow's problems. Today's are worse.

Here is how the summer is about to unfold.

1. Unemployment will be revised upward any day now to about 9.7%.
2. The political masses will call for a second stimulus. (Biden is already greasing the wheels)
3. Borrowing rates to support the stimulus will reach critical levels as investors demand a greater risk premium than the USG is prepared to offer.
4. Fed loses credibility as it suddenly buys up Treasury debt to make up for weak demand.
5. Inflation chicken littles (myself included) and bond vigilantes (Gross, et al.) will issue even more dire warnings about fiscal projections.
6. Stock market volatility (as measured by the VIX) will be back to 2008 levels.
7. Oil producing nations, Russia in particular (especially as it faces the threat of bond default again), will slash production. The resultant price of crude will keep recovery forecasts for the US economy pessimistic.
8. Even CNBC will talk about the liquidity trap. Simply, the threat of inflation is not enough to get sideline money back in the game because there is still too much fear.


Deja vu all over again?