In 2010 it Will Still be the Economy

I may be over optimistic but I am now assuming that Obama will get some kind of health care reform. That’s good news as it means that Kristol’s admonition to his Republican stalwarts to, “just kill it” will have been roundly beaten. Now for the bigger problem as we look toward the midterm election.

The danger here is that Obama could easily lose the Congress to the Republicans. I believe the major issue will be the economy. More specifically jobs. How will the Republicans attack ? They will play the populist card saying that the administration bailed out Wall Street and left the double digit unemployed flapping in the wind. One reason they may play this card is the failure of Obama Administration to change that cast of characters running the countries economic engine.

In an earlier blog I argued against having the same guys who orchestrated the economic meltdown back in their same old positions. How can Bernanki, Geithner, Summers et.al. do anything different from what they did before? Mr. President that’s all they know. No matter how much great oratory you put out there if the job market doesn’t turn around you are in deep trouble. So what could you do?

Start by letting some of those economic wizards go on long academic assignments. Start with a new team. When this first came up during the campaign I was sure there were knowledgeable economists out there who could help the President Change course. Remember Change? Okay here’s a suggestion.

It turns out that there was someone in Washington, Chairperson of the Commodities Future Trading Commission, CFTC Brooksley Born a Stanford graduate, who guess what? She not only warned about the coming catastrophe based on all the Derivative speculation but she actually moved to do something about it. Imagine who went after her jugular? Of course the same old gang, Greenspan, Summer Rubin et.al. Mr. President there’s your replacement candidate for the job of Secretary of the Treasury.

What is so striking about Brooksley Born was her ability to stand up to all that “old boys” pressure and stick to her guns. She actually began to move in the CFTC to curb the Derivative abuse. One colleague said, “History has already shown that Greenspan was wrong about virtually everything, and Brooksley was right.” The “old Wall Street boys” went nuts getting the Congress to actually shut her down.

Now Mr. President that’s who you need up there in the economic power chair to begin to get these greedy guys under control. Oh, I don’t know if she would even take the job. Wouldn’t blame her if she didn’t. Yet I know from my own Washington experience that it is very hard to resist the siren call from the White House.

Obama, take the economic issue away from the Republicans by showing that you are determined to carry out your campaign pledge of Change. That is long overdue in the “economics department.” Brooksley Born would represent at least a good beginning in curbing the abuses of Wall Street and come up with a real jobs program. The clock is ticking Mr. President 2010 not far away.

Thanks Kate N.H.W.Y.