Obama definitely made a mistake by underestimating unemployment. Saying unemployment would only reach 8% and say the Bush phrase "...no one could predict..." (Sadaam had no WMD’s) unemployment reaching 9.5% so quickly was a big political mistake.
I already had a go at Obama’s weak stimulus package and his Reaganist "rosy scenario" ( http://www.dailykos.com/... )
http://www.dailykos.com/...
Unemployment is a lagging indicator ( http://www.aier.org/... ). Why would anyone in the Obama administration think the unemployment rate would actually stabilize until the US experience some type of GDP growth?
I will not speculate on why Obama’s economic brain-trust chose this tactic. All I will say is Obama is now in danger of losing credibility on economic issues. How can he expect to go back to the well and request another stimulus? He can’t. A majority of Americans will not believe him.
The Democrats and Obama have been and will be under relentless pounding from the Republicans. This is their only path when considering how low the Republicans are (Palin, Stanford, Ensign).
I hope he and the Democrats survive with an unemployment rate of 10, 11 or 12 %.