Changes

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 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/]

===Bailout Crisis ===

===Bailout Crisis ===

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.

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.