Market NOT HAPPY !!

The Times: Reports Breaking News, the Dow Jones is in Free Fall over the latest plan by the Obama Administration to save the Banking system. At 8.26pm UK time the Dow Jones is down 381.43. The Banking system is like a first date, if chemistry is wrong you don't get a second call, lets hope the Obama Administration has not forced the Market down a few more hundred points. Lets hope it rallies tomorrow.

Obama on Iraq and Afghanistan

The White House: The President was asked about Iraq and Afghanistan at his First Prime Time Press Conference. The President stated the following, " With respect to Afghanistan, this is going to be a big challenge. I think because of the extraordinary work done by our troops, and some very good diplomatic work done by Ambassador Crocker in Iraq, we just saw an election in Iraq that went relatively peacefully. And you get a sense that the political system is now functioning in a meaningful way. You do not see that yet in Afghanistan. They've got elections coming up, but effectively the national government seems very detached from what's going on in the surrounding community. " The President did not mention any timetable for Iraq, even though the question stated his Campaign pledge to get out of Iraq in sixteen months, the President did not confirm that in his answer. As Fox News has reported the Pentagon is in favour of a 23 month withdrawal, this would allow a effective withdrawal of troops and equipment. Also it would allow the Obama Administration to change the status of most troops from Combat to Training Troops, there can be a lot of trainers over a hundred thousand. President Obama is clever guy, even if his press conferences are dull! he knows that Iraq has worked, Afghanistan could be a bloody nightmare, think LBJ and Vietnam but worse, at least Vietnam never attacked the American homeland, the terrorists in Afghanistan did on 9/11 2001. Thus Obama cant get out of Afghanistan, if the USA leaves and the terrorists come back, we are back to more attacks like 9/11. Thus one can postulate that Obama will find good reasons to stay in Iraq, and keep Afghanistan at a low boiling point. The Economic Crisis, two wars are enough for two terms, if he makes a mistake in Iraq he could have a war with Iran on his hands. Thus expect the tone to change but not actual policy.

838 Billion, Down the Toilet ?

BBC News: Reports that Obama Economic Plan will cost eight hundred and thirty eight Billion Dollars. If this does not work it will destroy the election chances for Democrats for a generation, this is the final throw of the dice of those that supported the New Deal and the Great Society. Its the view that Government should run the market, yes its the most terrifying words once can hear, " We are from the Government and am hear to help! ". Its simple folks, if this works Obama gets re- elected, if it does not work, the Democrats are out in the 2010 Mid Terms and Obama is out in 2012. One hell of a throw of the dice!

The Obama Economic Plan and the Senate

The US Senate has passed its version of the Obama Economic Plan, as with the closure vote the Democrats passed the Bill with Moderate Republicans. The vote was 61 - 37.

Obama, Rendition and the UK

The New York Times: Reports on the case of suspected terrorist Binyam Mohamed, the new Obama Administration has as the Times reports followed the precedent of the Bush Administration, as in the case is matter of National Security. This suspected terrorist was at the centre of a UK political and legal debate on the nature of rendition. It is good to see that the Obama Administration is kept some of tools to fight terrorism, one has to wonder will the BBC run with this story, or cant they get out of the Obama bubble.

The Senate Result

CNN News: Reports on the motion to close debate on the Obama Economic Plan and the differences between the Senate and House Bills. The US Senate records the vote passed by 61 - 36. The President only got three Moderate Republicans to support this motion, he needs them for final passage, thus he needs to make sure that the House Leadership takes the Obama line on the Bill. The House Leadership have no choice but to follow the Obama's will, he is the leader of the Party after all, they want him to Campaign for them in the Mid Term Election. Also the White House can grant money to districts, they can also rejected requests. Thus Expected a quick passage of the Bill in the House and Senate before President' Day.

Obama Wins the Senate

The News wires are reporting that the US Senate has closed Debate on the Obama Economic Plan. This means that there are two steps to go before it becomes law, the House and Senate Bills have to be combined and passed again by both Chambers then it will go to the Oval for the signature of President Obama. The only problem could be with the Liberal Democrats in the House, they could try to put all the pork back in to the Bill, this could cause the moderate Republicans in the Senate to reject the Bill when it comes back to the Senate, thus the West Wing will have to keep an eagle eye on the House Leadership. The President can not afford for the House Leadership to defeat him on this Bill. On the whole it can be expected that the Obama White House will make sure the Bill gets through and keeps the Republican support. Thus a major Congressional victory for President Obama, up there with those of FDR, LBJ and Reagan. The downside is that its now the Obama Economy, the lack of Republican support means that his re - election is down to getting the economy going and making those millions of jobs for the American voter. But this is a night to congratulate the Obama White House, good job.