BO and the banks!

Pres BO went "wacko populist" yesterday.

It makes no sense, specially for a president trying to get employers to hire more employees!

The Wall Street Journal got it right:

"Now, amid Democratic panic over 10% unemployment heading into an election year, the President is attempting a double populist play:

Blame the bankers for causing the financial crisis and recession by lending too much, and blame them again for causing high joblessness now by lending too little." (WSJ)

Democrat panic? Lots of it! Have you seen public opinion polls?

Back to our populist president!

As a banker's son, I have always been very proud of banks and my father's lifetime profession. (I was a banker too when I came out of school)

Banks are critical institutions in any private economy.

To be fair, banks are not saints....and some banks clearly made too many bad loans.

At the same time, banks were under pressure to make mortgage loans to people who could not afford them.

Moral of the story: Let the free market decide who gets or does not get a mortgage loan.

Keep politicians out of the mortgage business!

Let Barney Frank open his own mortgage bank!

Let Mr Frank risk his own money making loans to people! Do you think that Mr Frank would be as generous with his money as he was with ours?

Beyond the "populist" rhetoric, Pres BO is missing a key point.

Banks are not lending for the same reason that businesses are not hiring.

In other words, no one has a clue of what the economic landscape is going to look like because of health care, cap and trade, tax increases, etc.

Question: What is going to happen in 2011 when the very effective Bush-tax cuts expire?

Is Pres BO going to let the cuts expire and increase taxes?

Question: What impact is BO-Care going to have on our federal deficit, currently at 10% of GDP and headed for a similar mark in September?

Question: What is that small businessman with 20 employees going to pay for BO-Care?

Why do these questions matter?

Because they are critical in the real world where most of us live!

Sadly, Pres BO, and his anti-business Dems, have scared the heck out of people who create jobs and make things happen.

And don't forget the poor dollar!

Here is my advice to pres BO:

Stop talking like an out of control populist sinking in approval polls and start acting like a man who understands how wealth is created!

P.S. Click and listen to our latest show: Tuesday morning round up