The Treasury’s bank Stress Test details are out and they contain some very interesting information…..about the recently passed Obama budget. We’ll get to the discussion on the banks later because right now it’s much more intriguing to compare President Obama’s Treasury Department assumptions with President Obama’s budget assumptions.
The bank stress tests are used, in part, to anticipate if major US banks have the ability to remain in business throughout the economic downtown. The Treasury stress tests used GDP growth estimates for fiscal year 2010 ranging from .5% to 2.1% growth. Guess what GDP growth rate President Obama used to sell his budget plan last month? 3.2%. Can you say rosy scenario? Secretary Geithner apparently can’t. He doesn’t consider 3.2% growth in the realm of possibility when assessing the health of the nation’s banks. Sounds like Geithner needs a shot of Hope and Change to get with the program. It looks like Senator Judd Gregg was right, the President’s whole budget plan is a lie:
In a hearing before the Senate Budget Committee Gregg dressed down Geithner with facts, figures, and charts. While always keeping his cool, the exchange was somewhere between a mother’s scolding, a drill sergeant’s questioning and an attorney’s cross examination.
In his opening statement, Gregg politely called the administration’s budget forecast a lie.
“The argument that it cuts the debt in half in four years is, ahh, is truly spurious,” he told Geithner.
President Obama himself gives Gregg’s comments a sense of stinging credibility. When the president introduced Gregg as his nominee for Commerce Secretary last month, he said Gregg is known for is fiscal discipline.
“He shares my deep-seated commitment to guaranteeing that our children inherit a future they can afford,” Obama said.
It’s no surprise that this bank stress test data was released on a Friday afternoon. As with the body of this President’s rhetoric, it puts the lie to another load of promises made by Candidate Obama. When will the legacy media begin holding this man accountable?