Kudlow: Obama Power Grab Causes Market Selloff

CNBC's Larry Kudlow says that the market decline was fueled by a power grab by Obama, first with Geithner declaring that many banks might not be allowed to repay TARP funds and in fact, might need more, then with Obama playing a Carl Icahn role in forcing out GM's CEO. Kudlow had a few additional observations regarding GM:

And why isn’t Obama’s special auto task force ordering a replacement for Ron Gettelfinger, the UAW’s president? Weren’t their oversized pay and benefit packages a big part of the problem?

Kudlow also reminds us that the new role of GM will not be to turn a profit, but to institute the government's policy goals:

Incidentally, in President Obama’s speech on Monday about the Wagoner firing, as well as in Treasury term sheets for GM and Chrysler, there are multiple references to “the next generation of clean cars,” to new CAFE-standard mileage increases, and to green power-train developments. All this is a big green climate-change priority for the new administration. But the simple fact is, small, tinny, and expensive green cars just don’t work for consumers.

No one should be surprised anymore - we have a socialist President who doesn't like our free market (yet already highly regulated) economy as it exists.