Monday, March 09, 2009

The Curious Case of Barack Obama and the Stock Market

The Dow is down another 60 and falling at this writing, and there's a lot of interesting stuff out there about the relationship of Barack Obama's policies to one the greatest market free-falls we've been privvy to in the last 100+ years.

Let's talk some history, shall we? Under Obama's plans to rape the private sector to fund his socialistic expansion of American government, we have seen the market react thusly:

** The stock market had its worst January in 113 years.
** This was followed by the worst February for the stock market since 1933.
** And, the Dow has dropped faster under Obama than any other new president in 90 years.

Check out the following video - "Neil Cavuto pointed out that the media was big on Carter but Wall Street wasn't and Wall Street turned out to be right. The media was not big on Reagan but Wall Street was and again Wall Street turned out to be right. And now, the media is Obama's lapdog but Wall Street doesn't like what Obama is showing them":

The Dow is not going to rise anytime soon...
why should it, when:

-higher taxes on corporations will lower profits-the "cap-and-trade" emissions proposal will curtail profits, and add an invisible "energy tax" to every product purchased or created.
-higher prices will make it harder for consumers to purchase goods and services, thus lowering demand.
-higher taxes on those making over $200K - who account for the largets majority of this nation's disposable income - will force them to cut back on spending, thus again reducing demand.
-eventually, Obama will have to tax the middle class to pay for his entitlements and health care "reform", thus further lowering discretionary spending.

Does Obama get this? Does he understand wealth creation at all, or only wealth distribution? Does he realize that almost the entire non-union working class is counting on a 401(k) plan to live on after retirement, or has a life lived on the assurance of a government pension blinded him to that fact?

There are many who believe that the president just doesn't get it:

Some Wall Street economists think President Obama could have voiced some sympathy about the plight of frightened shareholders when he compared the stock market's plunge to an election tracking poll that "bobs up and down, day to day."

They worry that the president is underestimating the important role the stock market plays in the economy's performance, and that the markets' precipitous slide is actually a vote of no confidence in the administration's handling of the economy. There's also a suspicion that Mr. Obama and his advisers think only wealthy people own stocks...

Here's another number that is starting a slow sink to the bottom that may yet become a "precipitous slide"...Obama's approval ratings:

The Rasmussen Reports daily Presidential Tracking Poll for Monday shows that 38% of the nation’s voters now Strongly Approve of the way that Barack Obama is performing his role as President....Thirty-two percent (32%) now Strongly Disapprove of the President’s performance, the highest level of disapproval measured to date. These figures give Obama a Presidential Approval Index rating of +6, his lowest rating to date...

A large number of voters have a lot "emotionally" invested in Barack Obama, believing his election cleansed their souls of any remainders of the "original sin" of slavery, or feverently believed his "change" would be for the better. These people will cling for a while longer, but as reality begins to set in on what our new president is doing and what his final destination is, expect to see some serious slides in his approval ratings in the future. Equivilent to some of those 300 point Dow drops we've been seeing.

Except, of course, when Obama sees his poll numbers dropping, he'll take it a bit more seriously than the plunging Dow. After all, the poll numbers are all about power. His.

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