Wednesday, January 26, 2011

SOTU+1: What President Obama's Address Accomplished

Mark Halperin on what President Obama accomplished -- and accomplished in a Big Way -- with last night's State of the Union address:



Link here for more from Time's Mark Halperin

SOTU + 1: Dr. Doom on the Bitter Pill of What Lies Ahead

The reductions proposed in President Obama's State of the Union last night are just "Spare Change" according to economist Dr. Nouriel Roubini.  But more actions will be needed to seriously tackle the deficit, Roubini said at the World Economic Forum in Davos, Switzerland.
The government will have to work on reform on entitlement programs like Social Security and "also eventually raise taxes for both the rich and the middle class," he said.

Until that happens, the Chinese will have to continue to buy US Treasurys, because "there is not alternative for them" and if they stopped their currency would appreciate sharply and hurt their exports and growth, Roubini said.

"Whether the Chinese like it or not, for the time being they will have to fund the United States, he added.

More here from CNBC