Why the Market Continues to Fall
The by-product and reality of Obama?s economic vision
The market continues to plummet despite everything that has been done to prevent it. Billions have been infuse in hopes to unfreeze credit markets, but so far it hasn’t helped and government officials say it will be weeks before the effects will help. Global coordinated efforts to cut interest rates didn’t slow it down or stop it either.
From a piece of the Associated Press today:U.S. Has Dwindling Number of Options Left in Economic ToolboxThursday, October 09, 2008
“The Fed’s primary tools are lowering interest rates and flooding the system with money. It’s already done plenty of both.”
Experts believe that it should have been enough to bring the problem under control, but it hasn’t. People are a bit confused and angry as to why the stock market continues to fall. Some have tried to explain that people need to wait and be patient for the effects of the rescue package to be felt. I disagree. I think the market will continue to fall steadily and here is why.
The real reason the stock market will continue to slide is because there is even a greater force that is influencing the stock market than the housing/credit scandal.
“A greater force you say? What on earth could be greater than the housing scandal that has taken place?”
To understand the answer to that you have to understand that financial prosperity is inherently linked to freedom. In a nut shell, the reason America has been so successful in becoming the most affluent nation in the world is because we have had the freedom to do so. When you combine freedom with capitalism, you have a combination which allows for entrepreneurism to thrive. What results, is economic growth through innovation, and competition. When left alone, everyone benefits, more jobs are created, products are cheaper and easier to buy, and everyone profits from a higher standard of living.
The stock market is essential a structure that allows people to tap into this boon of economic growth and share in the rewards of it. In fact you could say that our whole economy, our banks, lending institutions, and all manner of industrial businesses are interwoven into the fabric that makes up the stock market. When it crashes or fails, every aspect of our economy feels it. By extension, you could say the same is true for the global economy.
As the AP article above states, we have already pumped plenty of money and have cut interests rates enough that it should have at least stabilized the market, but it hasn’t. Is it truly because it will take time for those efforts to kick in or is it possible that something else is threatening the stability of the market?
It is a known fact that election years always have a big impact on the stock market. The outcome of the elections often will dictate how safe or how afraid businesses and investors feel. The reason money infusions and tax rate cuts have not calmed wall streets fears is because THEY ARE AFRAID OF SOMETHING ELSE!
If this problem with the housing market was the only thing, as bad as it is, I am confident that enough has been done that it would have stabilized the market even if the dollars haven’t reach the various institutions yet. Just knowing that aid is coming soon should be enough calm fears long enough for the money to arrive but it hasn’t.
They are afraid of how the next president of the United States will use the powers of the government to essential destroy what’s left of the free market via regulation and higher taxes.
Throughout his campaign Obama has been speaking directly to wall street and the message he has said is,
(paraphrasing)I am going to use the power of the presidency to tax you more.
I am going to use the power of the presidency to regulate you more.
I am going to use the power of the presidency to implement government run institutions that span healthcare, education, and whatever else I feel like doing. You will comply or you will be cut out.
I am giving notice to you now that effective immediately upon my acceptance of the oval office, I am now your new boss.
And all the middle class and poor people who support Obama scream yeah! Give it to them Obama! Talk about the econimy! Talk about the economy!
Ok so let’s talk about the economy.
You can pretty much sum up McCain by saying that he does cause a little nerviousness on wall street as he is a bit unconventional when it comes to creating solutions to problems. His 300 billion morgage renegotiation is an example of that, however, when push comes to shove, people on wall street know that McCain will listen to reason and he will not do anything knowingly that will result in seriously jeapordizing the free market practices.
When it comes to Obama, there is nothing new in what Obama is doing than any Democrat has ever done in making blank check promises to garnish votes, with the exception of this. Obama hasn’t even tried to disguise the socialistic nature of his promise for change. In fact you could say that he has assumed the posture of an economic dictator where rich Americans and Big Business is concerned. Much in the same way he forced schools to work with radical organizations like Acorn as the Chairman of the CAC, he will abuse his powers as president and use the legislative and economic powers of the government to leverage businesses and force them to his will.
Now I ask you? Is that free? Maybe to those who look to the government for solutions they see everything he says as promises, but let me assure you that those on wall street see those promises as threats.
As long as Obama continues to lead in the polls and it is perceived that he will become elected, you can continue to expect the market to steadily go down as people begin preparing for what’s to come.
Mr. Obama, when you keep saying that trickle down economics doesn’t work, it only shows how truly ignorant you are as far as economics is concerned. Trickle down-economics is a coined phrased to describe the symbiotic relationship of opportunity with big business in this country. Without big business there is no opportunity! What are you going to do Obama when you tax businesses and they move overseas? What will you tell the middle class and the poor as they lose their jobs? And what will you tell the moms and dads who have to now pay higher prices on milk, bread and eggs and other products they buy on a daily basis because businesses just pass the cost of the additional taxes down to the consumer? Maybe you don’t believe in trickle down economics, but I can assure you that trickle down costs is the reality when you try to regulate and tax big business. It will be the middle and lower class that will suffer the most from your ignorance.
Whether you are ignorantly well intentioned or purposefully deceptive I do not know, but one thing I do know is that the consequences of your purpose economic policies will destroy the freedoms of our capitalistic markets. That makes you dangerous and unable to fulfill the oath to protect American interests, because you sir will be the one destroying them.