Obama's Bizarre Economic Advice to the nation

From the NY Times we learn that ...

The president said he could not assure Americans the economy would begin growing again this year. But he pledged that he would “get all the pillars in place for recovery this year” and urged Americans not to “stuff money in their mattresses.”

“I don’t think that people should be fearful about our future,” he said. “I don’t think that people should suddenly mistrust all of our financial institutions.”

The first part of that forecast is pure "CYA" as unemployment increases, businesses shutter more plants and the stock market declines by 3, 4 5% PER DAY. Market watchers dread the times during the day that members of this administration comment on the economy, each utterance followed by another percentage point drop in the Dow.

Geithner's plan at the IMF sank Indonesia and ended the administration of its ruler. He can't get anybody to work for him ... hell he can't get anybody to talk to him ... and no one has a clue whether he has a plan, or a clue about what a plan should look like (other than taxing the oil industry).

The part about stuffing money under mattresses is pure BS. People are not stuffing money under their mattresses. I know because I am in the business of advising people about their money. I'll tell you what they are doing. They are watching in shock as the value of their stocks and stock mutual funds have evaporated 20% so far this year. They are seeking the shortest term, safest CDs and treasure notes they can find, and they are starting to buy gold. For the first time in a century, the average American - not just gold bugs - are buying gold because they know that some time down the road the trillions of dollars pouring out of the Federal Reserve are going to be recycled into the real economy and inflation will hit like a whirlwind, wiping out the accumulated savings of lots of "average Americans."

At which point the NY Times, if it’s still publishing, will blame Bush.

And people like me stand by in utter amazement that despite the gigantic pain this financial crisis is causing, despite the scattered dreams and lives, Obama has moved on to the next thing on his agenda. Perhaps on the assumption that now that he’s fixed the country's financial health he must move on to minster to its physical well being.