Congratulations to Barack Obama and the Democrats for inspiring confidence
As I write this, the Dow Jones Industrial Average is at its lowest point since 1997. It has fallen 269 points so far, and stands at around 6793. Again, the lowest point since 1997.
Now I am the first to say that I am not an expert in finance. I know enough to speak intelligently about it, to understand my investments and to understand the macro-economic condition of the country. I rely on Francis’ posts to alert me to anything untoward, and let the rest go.
I do understand markets, however. I understand that the stock market is a leading indicator, a barometer of where people who invest real money think the economy is headed. The market is not prejudiced, it is not politically correct, it cannot be assigned anger-management classes and it can’t be chastised for not supporting the new President. It is what it is – a truth-teller.
Here is the truth it is telling us. It is telling us that the world economy is in a helluva mess. It is telling us that the US economy is in a helluva mess, and that corporate earnings going forward are bleak. Most of all it is telling us that the Chicago style political payoff scheme masquerading as an economic stimulus package won’t help the economy. It is simply transferring wealth from producers to consumers with the expectation that the poor will lead us out of this recession.
For all of those whining about who wants Barack Obama to succeed and who doesn’t – I guess it doesn’t matter, does it? Barack Obama and the Democrats HAVE succeeded. The spending package is theirs. The new budget is theirs. This economy is theirs. The House, and Senate, and White House are theirs. Whether the right is part of the cheerleading squad is not material.
I will say this, however. The canary in the coal mine is dying. The markets are tanking, and have been since Barack Obama assumed the lead in the polls before the election. The Democrats have made it their policy to declare war on American business, and it is far, far too late to ask the producers in this country to innovate, produce and generally bail these nitwits out. We will be mired in bailout after bailout, failed policy after failed policy, until the leadership in Washington changes. Period.
Do I hope Obama succeeds? Again, it doesn’t matter – he already has. What he hasn’t succeeded in doing is fool the markets, and help the economy, and he never will.