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Former White House Economic Policy Director Todd Buchholz on Obama’s impact on the markets.
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Grim economic growth continuing to beleaguered President Obama as He continues his jobs tour of the midwest yet stocks and the markets overall have continued to be one of the financial bright spots.
That the president can actually point to and say.
We did it with the Dow up -- 7% since He took office back in January of 2009 and the S&P up about 41%.
But.
Todd Buchholz believes these gains would pale in comparison.
To -- President Obama free White House after the 2012 election.
The former White House economic policy director under the first president George H.
W.
Bush and author of the book rush -- you need.
And love the rat race He joins us now -- make your case.
Well look the president is on a bus tour right now but forget the bus imagine the president is.
Over running the that did an M one tank he's got attorneys got the guns in front of them at one by one he's been trying to pick off different sectors of the economy.
The oil sector the coal sector the financial sector pharmaceuticals health -- before you know it.
The -- -- there were no sectors left there were -- untouched by new regulations are threatened regulations.
And threaten higher taxes to the fact is if the president's popularity ratings continue to fall and his reelection.
-- chances continue to fall then I think is really the opportunity for a nice further rally in the stock market.
OK but talk to your first of all you're not wrong about all the regulation and taking aim at certain -- industries but let's throw up on the screen some of the sector performances since the president.
Has taken office.
She -- ahead consumer discretionary up 77%.
Under his.
Watch IT up 72%.
The list goes on energy up 35%.
These sectors.
Have done extraordinarily.
Well in a tough atmosphere and you have got to believe you've got to at least concede Todd.
But some of it has to do with the stability at that the president shepherded after all of the drama of the financial crisis.
-- the search certainly.
The president looked quite stable and He came -- -- office.
And it's also true that there were calls in forecasting fears of a Great Depression that would have us all.
Lined up pursue bad apples on the street will that didn't come about I don't think it was really the president's actions that prevented a new Great Depression I think was the Federal Reserve board.
That did more of that heavy lifting.
But if look at it this way.
If corporate profits can be this strong.
And performance can be this strong.
With out.
The regulations and threatened taxes higher taxes.
Can you imagine how much stronger profits and prosperity can be with out to those threats in the faces of corporation.
Talent got a lot of cash on the sidelines and you know for whatever reason -- not like you've got cash we have topics that it.
-- know there's there's about two trillion and the banks are right and there's eight trillion sitting in savings and money money counts you know the so the question is.
What do you what do you lots of the president would change or you know become.
As you point out possibly.
Less antagonists -- -- businesses and maybe more business friendly.
What that the president has become.
To his credit a little schizophrenic about these things he's been in favor of some tax cuts for business investment a payroll tax cut.
But He is still held back -- -- for instance He -- free trade He says congress must pass free trade agreements.
But He is not sent to congress those signed free trade agreements so until He overcomes this schizophrenia.
It's hard to say that he's coming out on the side of capitalist -- and 300.
He's got two of the biggest capitalist guys running gigantic American companies I guess you could say on -- side you've got Jeff Immelt of General Electric Paul Otellini of Intel.
Both serving under the president by saying you know yes we will work on our job creation we will try and come up with ideas.
They are apparently not so turned office to avoid that -- you've got Steve case the former founder of AOL try to help out some some entrepreneur -- Perhaps -- sort of a coming around at this point could be too little too late out of now.
Well look -- there are hundreds of executives thousands eight in this country.
And of course any candidate can't come up with a couple of CEOs to have on his side I'm not terribly impressed.
With.
The performance of into dollar General Electric or AOL Holland -- that -- eyes lighting up to seventeen record quarters over and over how can you not be impressed by that.
-- look that the the fact that in Washington as president of the United States you can get some CEOs to come sit next do it meetings.
Any president can do that good or bad -- look that's done nothing to create jobs the president can have all the meetings He wants and bring in.
All the war -- but you -- support him but he's actually got to put into place policies that will lead to more hiring and that.
Now the president is sorely lacking in demonstrating.
All right thank you Todd Buchholz really appreciate your time today -- back for a White House economic policy director under president George H.
W.
Bush and.
