Sunday, November 23, 2008

The Best and the Brightest - What a Novel Idea

The Obama strategy is so clear and his execution is so flawless. But don't take my word for it, David Brooks is falling over himself giving Obama major props.

Krugman also sees the value of actually picking the best and the brightest to solve the big problems facing Americans

The benefit of the President-elect's competence is that it generates confidence which is exactly our current problem. One lesson we have been learning is that economics is not behavioral science and that consumer decisions are based as much on emotions like confidence and fear as facts like earnings and value. So the Obama is projecting confidence in the FDR model.

My prediction is that this is going to give a little market bump this week. But what would really help would be for Bush to replace Henry Paulson with Tim Guithner immediately so we can avoid the two month waiting period for solutions from treasury.

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