Obama Checkmated Himself

This is too funny: Just after Obama announced that he is about to go around the country to market his plan to create jobs, a plan that comes with raising taxes by slashing deductions for state taxes, mortgage interest and charitable contributions on Schedule A, Bank of America introduced its jobs package -- eliminating 30,000 jobs over the next few years and closing branches -- perhaps in part to save money to pay off the Obama administration's lawsuit against it and other banks filed on September 2, 2011, see details in this blog under "Obama Comes Full Circle" on September 2, 2011, and in part to prepare to realize a real loss on the bank's shadow inventory (underwater mortgages) because people would rent rather than purchase without the mortgage deduction.

With no housing recovery in sight, the shadow inventory will be dumped. That way, the property owners will get even richer because they can now buy cheap properties cheaper and rent it out for a healthy return, thanks to the mortgage deduction available to businesses and the depreciation on rental properties. That means less tax revenue for you to spend, Mr. Obama. Rich people may also enter into a sale and leaseback transaction, not that some of them are not doing that already.

Tax considerations aside, there will be no new housing with no end to recovery in sight with shadow inventory flooding the market. That means no new construction. Its rippling effect will lead to a triple-dip recession, one that maybe coined the Obama triple dipper.

The same sword Obama uses to cut off wealth to the rich has this other edge with the capability to cut him and his family off from any potential economic gain after he leaves office since a capitalist will not likely seek advice from a socialist and a socialist will not likely want to work very hard under capitalism since he/she expects the government to provide it all.

The evidence is in: By holding up his hot-off-the-press printed jobs plan and a double-edged sword this morning, Barack Obama demonstrates that he has no clue as to how capital works and apparently he is not paying attention to those who do, yet he needs a functioning and prosperous capital market to get him re-elected and more importantly, earn him a respectable legacy and some lucrative speaking engagements when he turns in his key to the White House.

Unless he eats crow and unravels his policies, this political chess game of jobs and spending is over for President Obama, and his presidency may very well end on January 20, 2013.