Boy, after this week Obama definitely need to get away. Unemployment numbers rise over 400,0000 for the first time in two weeks. His Job Approval has fallen to 39% for the first time this year. Only 26% approve his handling of the economy. This comes as the economy outlook look bad JP Morgan Chase says. From James Pethokoukis Reuters Syndication:
On Wednesday, Economic Forecaster-in-Chief Barack Obama said, “I don’t think we’re in danger of another recession.” Shades of John McCain’s “The fundamentals of our economy are strong.”
On Thursday, the stock market – freaked out by Europe’s spiraling debt crisis and a shockingly weak Philadelphia Fed manufacturing report – plunged 4.5 percent. In an unintentional rejoinder to Obama, investment bank Morgan Stanley opined that the United States was “dangerously close” to falling back into recession.
And it may be about to get a whole lot worse for the Obama 2012 campaign. The White House’s worst-case scenario for the economy on Election Day next year has become Wall Street’s baseline scenario. After looking at a string of weak economic reports and Europe’s growing fear of debt meltdown and contagion, JPMorgan – led by Obama pal Jamie Dimon – has just come out with a politically poisonous forecast.
The megabank now thinks the economy won’t grow much faster over the next 12 months than it did during the first half of this year — and that’s assuming Europe doesn’t go all pear shaped. It sees GDP growth at just 1.5 percent this year, 1.3 percent next year with unemployment at … 9.5 percent heading into the final days of the election season. “The risks of recession are clearly elevated,” the bank said. Here’s its reasoning:
Consumer sentiment has tumbled and household wealth has deteriorated. Survey measures of capital spending intentions have moved lower and the housing market shows little sign of lifting. Small businesses, retailers, builders and manufacturers all report a weaker business environment. Global growth has disappointed and foreign growth forecasts have been taken lower. In response we are lowering our projection for growth, particularly in the quarters around the turn of the year.
The President’s poll numbers continue to slide from Gallup,Inc:
A new low of 26% of Americans approve of President Barack Obama’s handling of the economy, down 11 percentage points since Gallup last measured it in mid-May and well below his previous low of 35% in November 2010.
Obama earns similarly low approval for his handling of the federal budget deficit (24%) and creating jobs (29%).
The president fares relatively better on foreign policy matters, with 53% of Americans approving of his handling of terrorism and roughly 4 in 10 approving on foreign affairs and the situation in Afghanistan. Also, 41% approve of Obama on education.
If I was him I either call back Congress in session or go on a low level vacation with the family. (not Martha’s Vineyard.)
Hat Tip: Ed Morrissey of Hot Air
and Hugh Hewitt