The verdict is in: That Obama speech (to which he arrived 53 minutes late) was a disaster, that totally failed to reassure anyone that the economy isn’t imploding all over again.Why the wrong note?
We wonder if Obama actually believes that he has to tiptoe around the bond vigilantes.
See, if we were giving that speech, amid this market, we’d have said: “Congress, get back in session, and let’s pas some tax cuts.”
Obviously that’s what’s need right now.
Instead, Obama focused on deficit reduction! He talked about the super-committee, and the need for tax reform.
At best, the super-committee will just deliver deficit reductions, which may satisfy S&P (though probably not, since they already said so), but will certainly do nothing positive for the market.
So we wonder: Does Obama actually think he needs to avoid offending the bond vigilantes? Does he think the bond markets represent America’s source of risk?
If so, he really needs econ advisors.