President Obama chastised Wall Street yesterday, for daring to fall 4.5% following the announcement of his “rescue” packages. He sounded like a cross parent when a young child receives a very expensive present and honestly explains it is not what he wanted and he has no intention of playing with it.
The President should do what he said he would do when campaigning – listen, and try to build consensus. He has now had two warnings concerning his economic policy – the refusal of most Republicans to vote for it, and the immediate reactions of markets over his first month in office.
He should remind himself that this was a crisis born of borrowing too much, and should go on to ask whether borrowing lots more is the best way to resolve a debt crisis. He does need to help mend broken banks, but should so so in the least risky and expensive way for taxpayers.
Most of us know that if we try to walk on water we get wet.