Cramer versus Obama

I tend to agree with Cramer here. The Recovery Act is full of junk and lacks vision. Obama let others craft a plan portrayed as a strategy to stimulate the economy, but which is instead a debt creation initiative to be paid down by future generations. Of course, a worse (and more likely) scenario is that future generations will see today's balance inflated away.

Obama is capable of something more. The country is changing; the whole world is changing. By letting Congress choose the direction of federal outlays, Obama deferred to the status quo, which we all know is broken.

As I predicted, China would gauge the winds before deploying their own stimulus. They have done so, and the initial reaction by the investor class is positive. I'm going to look at some of the details before lending my own opinion, but I would suspect that people who are long on oil will find something to smile about. Of course, a China stimulus repairs the status quo, it does not project the world economy into the future.

Sadly, there will be more breakage in the economy before things will get set right. Obama missed his chance to be the architect of the future economy. Rather, he sowed the seeds for the inevitable breakup of the Union of Fifty States. More on that subject some other time.