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The '''Obama Administration''' is the Executive Department portion of the U.S. government under [[liberal]], [[Democratic Party|Democrat]]  President [[Barack Hussein Obama]]; it began on January 20, 2009 for a term of four years.  [[File:Obama-poll.jpg|thumb|330px|Excitement for Obama was very high before people understood his plans; enthusiasm has plunged as criticism beomes sharper and strong opponents grow more numerous than strong supporters]] President Obama had a bad summer of 2009, as his popularity slumped, his party weakened and opportunities for celebrating achievements happened. Contentious town-hall meetings attacked the injustice of his health care proposals, unemployment grew, the stimulus did not stimulate, Democrats bickered more than usual, grim forecasts of failure came from his generals in Afghanistan, dark suspicions circulated regarding his motives for speaking to schoolchildren; accused of socialism, he was brand in Congress as a liar. He was criticized first for not making his case, and then for overexposure, as he deliberately put into the shadows everyone in his cabinet.  Obama’s inexperience in domestic and foreign affairs worsened his troubles. Expectations of a Republican revival, a wild pipedream in the spring, became realistic as the party led in the gubernatorial elections in New Jersey and Virginia, and the Democrats continued in disarray in New York, Texas and California. Conservatives predicted that it will soon be 1994 in America again.

The '''Obama Administration''' is the Executive Department portion of the U.S. government under [[liberal]], [[Democratic Party|Democrat]]  President [[Barack Hussein Obama]]; it began on January 20, 2009 for a term of four years.  [[File:Obama-poll.jpg|thumb|330px|Excitement for Obama was very high before people understood his plans; enthusiasm has plunged as criticism becomes sharper and strong opponents grow more numerous than strong supporters]] President Obama had a bad summer of 2009, as his popularity slumped, his party weakened and opportunities for celebrating achievements happened. Contentious town-hall meetings attacked the injustice of his health care proposals, unemployment grew, the stimulus did not stimulate, Democrats bickered more than usual, grim forecasts of failure came from his generals in Afghanistan, dark suspicions circulated regarding his motives for speaking to schoolchildren; accused of socialism, he was branded in Congress as a liar. He was criticized first for not making his case, and then for overexposure, as he deliberately put into the shadows everyone in his cabinet.  Obama’s inexperience in domestic and foreign affairs worsened his troubles. Nothing worked right--he was embarrassed by winning the Nobel Peace Prize before any of his goals had been accomplished.

 

 

Expectations of a Republican revival, a wild pipe-dream in the spring, became more realistic as the party led in the gubernatorial election in Virginia, and the Democrats continued in disarray in New York, Texas and California. Conservatives discovered the secret of organizing mass public rallies, while Obama's famous 2008 grass roots network remains strangely silent. Optimistic conservatives predicted that it will soon be 1994 in America again.

==Economic Policy==

==Economic Policy==

The Obama administration is currently following what fiscal conservatives and libertarians call [[Obama administration fiscal policy|ruinous fiscal policies]] and [[Obama admistration monetary policy|reckless monetary policies]]. Economists debate in August 2009 whether or not the recession has hit bottom and when the overall economy will start moving up again; the consensus is that unemployment will remain high into 2010.

The Obama administration is currently following what fiscal conservatives and libertarians call [[Obama administration fiscal policy|ruinous fiscal policies]] and [[Obama administration monetary policy|reckless monetary policies]]. Economists debate in August 2009 whether or not the recession has hit bottom and when the overall economy will start moving up again; the consensus is that unemployment will remain high into 2010.

===Historical backdrop===

===Historical backdrop===

In June 2009 public opinion was favorable toward Obama personally, but increasingly dubious about his plans to overhaul health care, rescue the auto industry and close the prison at Guantánamo Bay. But with a positive job approval rating of 63% , Mr. Obama has the backing of Democrats and independents alike, even as Republicans turn negative, with only 23% supporting him.  Support for Obama's foreign policies and terrorism policies remains high at 57-59%.  Meanwhile the GOP weaknesses were glaring: the June poll found that the Republican Party is viewed favorably by only 28% of Americans, the lowest rating ever in a New York Times/CBS News poll. In contrast, 57% said that they had a favorable view of the Democratic Party.<ref> [Jeff Zeleny and Dalia Sussman, "Obama Poll Sees Doubt on Budget and Health Care [http://www.nytimes.com/2009/06/18/us/politics/18poll.html?th&emc=th ''New York Times'' June 17, 2009]</ref>

In June 2009 public opinion was favorable toward Obama personally, but increasingly dubious about his plans to overhaul health care, rescue the auto industry and close the prison at Guantánamo Bay. But with a positive job approval rating of 63% , Mr. Obama has the backing of Democrats and independents alike, even as Republicans turn negative, with only 23% supporting him.  Support for Obama's foreign policies and terrorism policies remains high at 57-59%.  Meanwhile the GOP weaknesses were glaring: the June poll found that the Republican Party is viewed favorably by only 28% of Americans, the lowest rating ever in a New York Times/CBS News poll. In contrast, 57% said that they had a favorable view of the Democratic Party.<ref> [Jeff Zeleny and Dalia Sussman, "Obama Poll Sees Doubt on Budget and Health Care [http://www.nytimes.com/2009/06/18/us/politics/18poll.html?th&emc=th ''New York Times'' June 17, 2009]</ref>

 

Billionaire [[Warren Buffett]], former Federal Reserve Chairman Paul Volcker, and former Clinton Treasury Secretary [[Robert Rubin]] constituted Obama's transition team of Economic Advisers.<ref>[ http://www.bloomberg.com/apps/news?pid=20601110&sid=aSzNv81CYh0c Obama to Meet With Buffett, Daley, Economic Advisers], Bloomberg, Nov. 6 2008.</ref>  Rubin has been sharply criticized for his role in the collapse of [[Citigroup]] which has taken $45 billion in federal bailout money.<ref>[http://www.reuters.com/article/topNews/idUSN0930738020090109 Robert Rubin quits Citigroup amid criticism], Reuters, Jan 9, 2009</ref>  Buffett has since the inauguration been an outspoken critic of the administration's declared objective of not allowing "a crisis to go to waste" [http://www.swamppolitics.com/news/politics/blog/2009/03/buffett_hits_obama_congress_on.html] and Obama's massive tax increase on the needy and those least able to afford it. [http://greeninc.blogs.nytimes.com/2009/03/09/buffett-cap-and-trade-is-a-regressive-tax/]

Billionaire [[Warren Buffett]], former Federal Reserve Chairman Paul Volcker, and former Clinton Treasury Secretary [[Robert Rubin]] constituted Obama's transition team of Economic Advisers.<ref>[ http://www.bloomberg.com/apps/news?pid=20601110&sid=aSzNv81CYh0c Obama to Meet With Buffett, Daley, Economic Advisers], Bloomberg, Nov. 6 2008.</ref>  Rubin has been sharply criticized for his role in the collapse of [[Citigroup]] which has taken $45 billion in federal bailout money.<ref>[http://www.reuters.com/article/topNews/idUSN0930738020090109 Robert Rubin quits Citigroup amid criticism], Reuters, Jan 9, 2009</ref>  Buffett has since the inauguration been an outspoken critic of the administrations declared objective of not allowing "a crisis to go to waste" [http://www.swamppolitics.com/news/politics/blog/2009/03/buffett_hits_obama_congress_on.html] and Obama's massive tax increase on the needy and those least able to afford it. [http://greeninc.blogs.nytimes.com/2009/03/09/buffett-cap-and-trade-is-a-regressive-tax/]

===Bailout Crisis ===

===Bailout Crisis ===

After spending over a trillion dollars in cash and guarantees, the bailout of the financial system by June 2009 seems to have failed thus far to stimulate economic recovery. Obama started to decline in the polls, as independents and Republicans became increasingly critical.  A firestorm of outrage swept the nation in March when it was learned that AIG insurance company, now 80% government owned, was paying $165 million in bonuses to the traders that had caused $60 billion in losses. Geithner was appointed to the Treasury largely on the basis of his work at the New York Fed, where his most important action was to design the bailout of AIG. Under Geithner's leadership it received $170 billion from the government.

After spending over a trillion dollars in cash and guarantees (by Bush and Obama combined), the bailout of the financial system by October 2009 seems to have saved the banks but failed thus far to stimulate economic recovery. Obama started to decline in the polls, as independents and Republicans became increasingly critical.  A firestorm of outrage swept the nation in March when it was learned that AIG insurance company, now 80% government owned, was paying $165 million in bonuses to the traders that had caused $60 billion in losses. Geithner was appointed to the Treasury largely on the basis of his work at the New York Fed, where his most important action was to design the bailout of AIG. Under Geithner's leadership it received $170 billion from the government.

[[Image:Toxic-assets.jpg|thumb|300px|left|Geithner plans to sell toxic assets to Wall Street]]

[[Image:Toxic-assets.jpg|thumb|300px|left|Geithner plans to sell toxic assets to Wall Street]]

With major banks on the verge of failure, Treasury Secretary [[Timothy Geithner]] unveiled yet another massive bailout program in mid-February. Trillions would be spent to move toxic assets out of the banks, but few details were provided. The widespread reaction was very negative, and Geithner lost more of his credibility as a problem solver.  Geithner finally came back with a plan on March 23 that will not need additional funding or approval by Congress.  The Treasury will use $100 billion from the Troubled Asset Relief Program (TARP), as well as new capital from private investors, in order to generate $500 billion in purchasing power to buy toxic loans and assets. The program could potentially expand to $1 trillion over time.  In June many of the major banks started to repay their federal loans, as anxiety eased about their future.

With major banks on the verge of failure, Treasury Secretary [[Timothy Geithner]] unveiled yet another massive bailout program in mid-February. Trillions would be spent to move toxic assets out of the banks, but few details were provided. The widespread reaction was very negative, and Geithner lost more of his credibility as a problem solver.  Geithner finally came back with a plan on March 23 that will not need additional funding or approval by Congress.  The Treasury will use $100 billion from the Troubled Asset Relief Program (TARP), as well as new capital from private investors, in order to generate $500 billion in purchasing power to buy toxic loans and assets. The program could potentially expand to $1 trillion over time.  In June many of the major banks started to repay their federal loans, as anxiety eased about their future.