Economics is going to take center stage for the Obama administration this week. Obama is having a Financial Stability Summit with a variety of people including cabinet members, economic aides, and Congressional leaders. He will then speak to Congress on Tuesday at 9PM about the economy.

On Thursday, Obama will unveil his budget and plan of action to “fix” the economy. The markets fell off a cliff last week and is still sinking today. The markets may or may not rally after Obama unveils how he will manipulate the economy and cause capital to move into areas that the market feels it should not.

Obama also pledged to cut the budget deficit in half by 2013. I suppose if you increase the deficit enough, cutting it in half would be less difficult. $500 billion deficit looks better than $1 trillion but, it is still pretty astronomical.

Chances are all the spending will do nothing to fix the economy and surely make things worse. It hasn’t worked in the past. Even the crazy Keynesians like Paul Krugman agree it hasn’t worked in the past. They just think there wasn’t enough spending–how laughable.

By Tommy Leung

Tags: budget deficit, economic crisis, economy, financial stability summit, keynesian, krugman, obama

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