Obama Finds Himself in a Conundrum

Online, October 7, 2010 (Newswire.com) - A conundrum is often defined as a difficult or intricate problem. But does 'conundrum' fit the bill for the position in which our president currently finds himself? Financial advisor and frequent keynote speaker Dennis Tubbergen thinks so.

Tubbergen, who is CEO of USA Wealth Management LLC, a federally registered investment advisory company, gives his opinions on the stock markets and financial scene in his blog and his monthly newsletter, Moving Markets.

Earlier this week at a town hall style meeting that aired on CNBC, President Obama defended his actions to stabilize the economy, stating that economic recovery would be slow and steady rather than the quick fix that most would like to see.

During the speech, Obama stated he will stand firm about allowing the Bush tax cuts to expire for those earning more than $250,000 annually. While some in his own party are suggesting the tax cuts should be extended for everyone, Obama is standing firm on his tax cut position and instead is proposing new stimulus spending on infrastructure such as roads, rails and runways.

"While one group of economists concluded this past week that the recession officially ended in June of 2009, the official unemployment rate remains higher today than in June when the recession 'officially ended,' " notes Tubbergen. "Home values are declining, the almost $800 billion stimulus package hasn't produced the results that Obama himself promised, and yet the President is sticking to his guns."

While Tubbergen believes a tax increase of any kind on anyone will have a negative impact on the economy, he also thinks the reality is the 'New Normal' is here to stay for awhile and Obama and his Democratic incumbents will end up feeling the brunt of the voters' anger this fall.

"The electorate is getting restless," explains Tubbergen, regarding the President's stimulus program. "This is the same tactic that failed miserably over the past year, succeeding only at increasing the country's debt and causing the natives (American taxpayers) to become exceedingly restless."

Tubbergen admits the President is in a difficult position.

"I've been of the opinion for the past couple of years that this is a credit driven recession that will drag on for awhile," states Tubbergen. "Even if a few economists have declared the recession officially over, it doesn't feel that way on Main Street."

But Tubbergen does think there is some hope for the political arena.

"The only thing that may save the politicians is some straight talk on where we are cutting government spending," he concludes. "Our government needs to sell a viable austerity plan to the American public."

For more information on Dennis Tubbergen's views, visit www.dennistubbergen.com.

The opinions expressed herein are those of the writer and not necessarily those of USA Wealth Management, LLC. This update may contain forward-looking statements, including, but not limited to, statements as to future events that involve various risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual events or results to differ materially from those that were forecasted. Therefore, the information contained herein is not intended to constitute investment advice and should not be interpreted as a recommendation to buy, sell or hold a particular investment. Prior to making any investment decision, the services of an appropriate professional should be sought.