Investor’s Business Daily:
It’s not as bad as it could’ve been. That, as the Labor Day weekend began, was the cold comfort that many in the media took from the still-dismal August jobs report. Can’t we expect something a little better?
True enough, 68,000 new private-sector jobs were created last month, showing that private businesses, though gasping for breath, aren’t dead yet.
But overall, 54,000 jobs disappeared, raising the toll during the “Recovery Summer” Vice President Joe Biden ridiculously hailed two months ago to 238,000. Nor was the uptick in the unemployment rate to 9.6% from 9.5% what you expect in a “recovery.”
This is not “better than expected”; it’s worse than expected. This can be gauged not by market expectations for modest job creation, but by long-term experience watching how jobs are created in a normal recovery. By that gauge, we’re in the worst jobs slump since World War II.
If it wasn’t clear to everyone by now, it should be: All the actions this government has taken — the $700 billion TARP program, the $862 billion “stimulus,” the health care takeover, financial reform — haven’t “saved or created” 3.8 million jobs, as claimed. Instead, they’ve destroyed millions of jobs — and with them, the hopes and dreams of those who’ve lost the jobs.
But the administration remains clueless, hinting that it may seek another “stimulus” costing billions. This bunch is either willfully doing damage to the U.S. economy, or completely incompetent.
[Emphasis added. –R]
Dennis Kneale, CNBC Media & Technology Editor:
In so doing, the President has shed his usual, becalmed visage of judicious intelligence and what-me-worry confidence. In its place is an unpleasant portrait of a sulking, vengeful politician lashing out at Goldman Sachs, J.P. Morgan Chase, Bank of America, Citigroup and their brethren on Wall Street–the only target that, his polls say, might resonate with the voters who are forsaking him.
The Obama folks “don’t accept that banks perform a necessary function in the system: to get the economy going again,” says one senior executive at a Wall Street giant. “This business has a social benefit, and it’s how we make money. The two are not exclusive.”
Yet the White House is deaf to complaints that burdensome new rules would hurt bank profits and hamper the recovery. “When you tell them that reduces our profits, they just don’t care,” this exec complains.
That’s the big problem: All of us, especially the Obama Posse, should care a lot about profits at the banks. Healthy banks provide the fuel for a healthy economy. They line up hundreds of billions of dollars a year in syndicated loans for businesses and directly loan out hundreds of billions more.
Obama’s new proposal to ban banks from trading for their own accounts cracks down on a practice that contributed, in no way whatsoever, to the housing bubble and the tumultuous tumble that followed. A recent Goldman Sachs report shows that, simply put, faulty and loose bank lending practices caused 98 percent of all losses, not the banks’ proprietary trading.
Emphasis in bold added by yours truly. This is class warfare on the part of the Obama administration, plain and simple.