John P. Dubots, Temecula Financial Planner, on White House Scandals and the Economy

John Dubots, Financial Advisor in Temecula, California, discusses recent White House scandals and their potential effects on the economy.
By: Dubots Capital Management
 
TEMECULA, Calif. - May 16, 2013 - PRLog -- President Obama and his administration are currently facing three major scandals, marking what may be the most difficult period of his two terms so far. As the President and his staff struggle to answer questions about the Benghazi attacks, the IRS controversy, and the Justice Department scandal involving the Associated Press, many would be correct in wondering whether the nation's other pressing issues could be affected in the meantime.

While none of these scandals affect the economy directly, they are likely to have an effect upon the delicate balance of power in Congress. Any scandal which negatively impacts a president's popularity also affects his ability to wield influence. As Congress and the White House seek to negotiate compromises on economic issues like tax reform, the debt ceiling, and the budget, the President and his administration may be losing some political bargaining power due to their lost credibility with the American public.

According to RealClearPolitics [http://www.realclearpolitics.com/epolls/other/president_obama_job_approval-1044.html ], the President's approval rating has already dropped from 53 percent at the beginning of the year to 48 percent at present. As more evidence concerning the three scandals emerges, the outcome of investigations could potentially cause his rating to plummet even more. With relations between Democrats and Republicans remaining tenuous at best, Obama's vulnerability could place a strain on party loyalties and tip the balance of power in favor of Republicans.

Since several upcoming decisions in Congress carry the potential for major impacts on consumer confidence, investor conduct, and corporations, those who are concerned with the direction of the economy would be wise to pay careful attention to Washington in the coming months. In particular, Congress is set to make a decision regarding the debt ceiling by the end of summer. Tax reform and balancing the budget could potentially be postponed until after Obama's term is finished, especially if Congress remains gridlocked as it has been all year. However, if one party senses they are in a strong position to pass measures without much compromise, an aggressive pursuit of one or both of these issues could be expected.

John Dubots is President and founder of Dubots Capital Management. Visit company website at http://jpdcapitalmanagement.com

Investment Advisory Services offered through John P. Dubots Capital Management, LLC, CA License # 0822926
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Email:***@jpdcapitalmanagement.com
Phone:1-888-605-8363
Tags:John Dubots, John P. Dubots, Temecula Financial Advisor, Economy, Tax Reform
Industry:Financial, Investment
Location:Temecula - California - United States
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