“One hundred days ago, in the midst of the worst economic crisis in half a century, we passed the most sweeping economic recovery act in history – a plan designed to save jobs, create new ones, and put money in people’s pockets,” Barack Hussein Obama said.”Now, one hundred days later, we are meeting our economic challenges head-on and beginning to see early signs of progress across the country.”

The above quote was May 27, 2009 in a White House press release.

We’re not sure what Obama’s “economic challenges” are, we do know that on the leadership scale he is immensely challenged.

Stocks fell to their lowest level in 10 weeks on Tuesday as talk of a second government stimulus plan is in the works. A member of the Obama administration’s economic advisory panel said the United States should plan to possibly provide a second round of stimulus funds to prop up the economy.

“It’s clear that over the last three plus weeks that investors are becoming concerned that the recovery in the economy will not come as soon as expected and will not be as strong as expected,” said Hugh Johnson, chief investment officer of Johnson Illington Advisors in Albany, New York.

“When there’s talk about another stimulus plan that adds fuel to that fire, it intensifies the concerns about the timing and strength of the recovery.”

Unemployment has risen to 9.5% and consumer credit delinquencies have hit an all time high and the Obama administration is running their own denial program.

Joe Biden and Obama Council of Economic Advisers member Austan Goolsbee recently said it was premature to discuss crafting another stimulus.

Outside adviser to President Obama Laura Tyson told an audience in Singapore yesterday that the stimulus package was indeed “a bit too small” and that the administration should consider a second effort. According to Bloomberg, Tyson then stressed “The U.S. needs to communicate its determination to reduce the annual shortfall once the economy recovers.”

Obama’s tepid economics plan:

1. Obama held a “fiscal responsibility summit” the week after signing the largest single-year increase in domestic federal spending since World War II.
2. Obama ordered his cabinet to identify $100 million in budget cuts, and proposed his own $17 billion in program terminations and reductions.
3. Obama promised to try and resurrect the completely ineffectual PAYGO rules, but made it clear they would not apply to his own health care spending.

Obama’s “stimulus” bill alone will create more debt (approximately $1 trillion including interest costs), than Bush’s first three years of budget deficits combined ($948 billion). Under Obama’s budget, the national debt will increase by more in two years than it did under President Bush in eight years. Obama’s spending will reach 24.5 percent of GDP, far higher than the post-war average of about 20.2 percent.

Businesses and consumers will pay the freight for the inept Obama economic policies. In the wings of Congress is the enormous fiscally irresponsible anchor known as healthcare “reform.”

As House Democrats work to finalize their healthcare overhaul discussion draft, sources say CBO has individually scored provisions of the legislation that together approach a total of $1.5 trillion.

House Ways and Means Democrats plan to help pay for the bill by raising taxes on people earning $250,000 or more and taxing sugary beverages.

The tax on sugary drinks is expected to raise about $50 billion. A previous Ways and Means paper revealed Democrats were considering raising taxes on the wealthy through a 2 percent surtax that would raise $256 billion.

If the Liberals keep chasing “rich” with taxes they will either move offshore, find means to shelter their wealth and current income or the money will dry up as these people drop out of the ranks of wealthy. Punishing the rich and businesses that create jobs is the worst way to solve economic problems and will only create more chaos, something the Obama administration delights in.

“I am pleased by the progress we’re making on healthcare reform and still believe, as I’ve said before, that one of the best ways to bring down costs, provide more choices, and assure quality is a public option that will force the insurance companies to compete and keep them honest,” Obama recently said.

The big question is who will attempt to keep Obama and his ilk honest? That horse has left the barn folks.

A close examination of government influence demonstrates how the Feds do more to diminish economic stability than enhance it. A minority report by the House Committee on Oversight and Government Reform released yesterday found that the housing bubble and financial crisis can be traced back to federal government intervention in the U.S. housing market.

The housing bubble that burst in 2007 and led to a financial crisis can be traced back to federal government intervention in the U.S. housing market intended to help provide homeownership opportunities for more Americans.

This intervention began with two government-backed corporations, Fannie Mae and Freddie Mac, which privatized their profits but socialized their risks, creating powerful incentives for them to act recklessly and exposing taxpayers to tremendous losses.

Government intervention also created “affordable” but dangerous lending policies which encouraged lower down payments, looser underwriting standards and higher leverage.

Finally, government intervention created a nexus of vested interests – politicians, lenders and lobbyists – who profited from the “affordable” housing market and acted to kill reforms.

In the short run, this government intervention was successful in its stated goal – raising the national homeownership rate. However, the ultimate effect was to create a mortgage tsunami that wrought devastation on the American people and economy. While government intervention was not the sole cause of the financial crisis, its role was significant and has received too little attention.

Political hacks like Sen. Chris Dodd (D-CT) and Rep. Barney Frank are still in charge of the mess they created and busy covering up their own debacle while creating new problems that hurt any economic recovery. Obama’s stimulus and weak promises only add fuel to the raging fire while attempting to convince the public they know what they’re doing.

The formula for economic recovery is to reduce the runaway spending and to cut taxes. Unfortunately, we have Obama and his advisors recommending more “stimulus” aka, spending and increase in taxes until some are paying upwards of 70% of their total gross income to prop up a failed plan and a failed administration.

Isn’t Socialism fun? Indeed!