Senator Shelby response to State of the Union, January 27 2010
"Our focus must be on jumpstarting the economy and creating jobs through policies that spur economic growth in the private sector. The path to economic recovery and sustained growth runs through the private sector, not the federal government."
Shelby: NASA Budget Begins Death March for U.S. Human Space Flight
"We cannot continue to coddle the dreams of rocket hobbyists and so-called 'commercial' providers who claim the future of US human space flight can be achieved faster and cheaper than Constellation. I have consistently stated the fallacy of believing the cure-all hype of these 'commercial' space companies, and my position has been supported time and again by both the experts and the facts."

Because NASA is like the military, it is of such long term strategic importance, you can't privatize something like that to the degree Obama wishes. Many other portions of the economy, yeah you can privatize considerably if not completely.
NASA is in a the game of exploration and it is of long term value to America, that doesn't fit the quarterly report rquirements of private industry.
This isn't for it before he was against it.
Private industry cannot replace the big jobs and focus that NASA does. They are playing two different games, yes similar, yes there is cross over and should be. But Obama is very very wrong.
He wants a political payoff NOW for his policy, handing out the bucks to get a payoff in his term.
NOt sticking with the plans of return to moon that won't pay off for him. It's so obvious.