The Obama Economy

Wall St. Journal ^ | 3/3/09 | WSJ Masthead

[grayhog]

As the Dow keeps dropping, the President is running out of people to blame.

As 2009 opened, three weeks before Barack Obama took office, the Dow Jones Industrial Average closed at 9034 on January 2, its highest level since the autumn panic. Yesterday the Dow fell another 4.24% to 6763, for an overall decline of 25% in two months and to its lowest level since 1997. The dismaying message here is that President Obama's policies have become part of the economy's problem. Americans have

[Ramcat]

Obama’s fault

In all fairness, Mr. Obama's policies are failing because Rush wants them to fail.

Rush's fault?

[Nervous Tick]

>> And don’t forget the coming implosion in commercial real estate.....

Yep. Let’s just say the coming implosion in every inflated asset class.

Corollary for you goldbugs: gold will go DOWN — a LOT — before it goes up to [$_____ << insert favorite magic number here]

[Nervous Tick]

>> I’ve expanded my retirement planning options to include early death.

:-)

One of many things I say around my friends and family, that is, people who won’t have me committed for the wacky things I say:

I am drawing a “wealth depletion curve” on a graph, and a “lifeline”, and I intend for them to cross the Y axis at the same time!

Now the question of how to bring that about. I’m not suicidal, so I guess I’m gonna have to pack that walker with plastique and take a bunch of a$$holes with me when the time comes...

Now don’t go look into having me committed now...

[randita]

Bill Clinton would act the same when challenged (squinty eyes, red face, pointing finger, clenched jaw). They’re narcissists cut of the same cloth. They yearn to be loved and admired and it angers them when they are questioned.

Reagan and the two Bushes did not interpret rejection of their policies as personal rejection. They were secure individuals, at peace with who they were.

But with Clinton and Obama, it’s all intertwined. They can’t separate the political from the personal. That’s why they are so poll driven. And that’s ultimately what will lead to Obama’s downfall and readjustment of his agenda.

[RocketMan1]

.. and we will have a second wave of foreclosures in 2010 due to Option ARMs that will be larger than the wave of 2008. Unless some sanity arrives in DC .. or Obummer gets impeached (a guy can dream can’t he?) and the economy actually improves .. QUICKLY!

With Obamalamadingdong, Nazi “Stretch” Pelousy, and Harry “We’ve Lost before We’ve Actually Begun” Reid in control, that ISN’T going to happen. These three have to be the dumbest yet slickest politicians (well . at least Mr Hopey Changey is) ever. The market will continue to tank and I think if the republicans get their heads out of their rectums we might have a chance to get the House back and overturn a lot of this nonsense!

[cblue55]

Is it not true that even MSM get their revenues from advertisers? The media is a free enterprise venture just like any other business and could be choked off by serious boycotts and protests of any company that advertises on them.

[concerned about politics]

Corollary for you goldbugs: gold will go DOWN — a LOT — before it goes up to [$_____ << insert favorite magic number here]

Soon it will be reported (if there are any real reporters left in the media) that there's a problem with our Gold. (Maybe this is why Clinton went to China).

Yes, it'll go up to about $2000. A lot of what we hold is garbage. What the investors are holding right now could be worthless.

People are being ask to sell their gold jewelry through television commercials right now. There's even "Tupper Ware" type parties to get people to sell what they have so it can be melted down. I wouldn't be surprised if someday Americans are REQUIRED to turn over their personal items of Gold and Silver, because we're in big trouble.

This will happen on Obomas watch.

[RocketMan1]

I am drawing a “wealth depletion curve” on a graph, and a “lifeline”, and I intend for them to cross the Y axis at the same time! Now the question of how to bring that about. I’m not suicidal, so I guess I’m gonna have to pack that walker with plastique and take a bunch of a$$holes with me when the time comes...

Thanks for the laugh! I needed it to accompany all of the tears. And the uncontrollable sobbing!

[RocketMan1]

Hey “concerned” ..

You sound like one of those “bitter clingers!” ;-D

[TheRightGuy]

I’m not suicidal either but all this cr@p about living longer if you quit smoking, quit drinking, give up red meat, etc, ad infinitum (name your special vice) is just so much blather.

Life is not a journey to the grave with the intention of arriving safely in a pretty and well preserved body, but rather to skid in broadside, martini in one hand, box of chocolate in the other, thoroughly used up, totally worn out, and loudly proclaiming -—WOOHOO-—WHAT A RIDE!!

[PSYCHO-FREEP]

Actually, during other recessions, depressions, etc, we have mostly always had to increase interest rates to curb deflation, and to increase the number of people protecting their liquid assets in banks. This kept the banks strong even though the economy was in the tank. Investors did not hold back as long either, when things started to move again.

This situation is in an area we have never been before. Instead of raising interest, the only place investors have to hide, is commodities. Unlike the Carter years, interest rates were raised accordingly to keep the financial market healthy. At one time, during the Carter years, an investor could buy a CD earning over 21%.

The answer to all of this difficulty was not for the Government to bail everything out or Nationalize it, but to simply raise interest rates so that investors had a safe place to take a breather from the risk of a volatile market. The market would have corrected itself as it always does. This would have greatly curbed deflation. It also shows how poorly suited Bernanke is as chairman of the Fed.

Thanks to the Governments incompetence, it is too late now. Deflation has been allowed to run it's course and most all the money that was invested, has been lost to deflation.

They will begin to print money eventually, but this time runaway inflation will not be supported by a surplus of safe cash or assets held by the free enterprise system, waiting for the market to turn.

Because thanks to this incompetent toddler who thinks he is King, there is no market left.

[Nervous Tick]

>> rather to skid in broadside, martini in one hand, box of chocolate in the other, thoroughly used up, totally worn out

... and who knows? Maybe after having lived just as long as that vegetarian teetotaler neighbor in the next nursing-home room down!

But seriously, in the eternal scheme of things ninety years is a really short time, not all that different from fifty years, or thirty. There’s more to life than life on earth.

[concerned about politics]

Because of government meddling (incompetence) , the tax revenues to Washington will go down around 30% - $40% this year. Government spent all it's money already, and our children's money, too.

Oboma will personally usher in and be personally responsible for the "2009 Summer of Hell" (globally).

[romanesq]

Cramer is a strange bird. He lives the trader life and has the same mentality but he is a Democrat, so he’s somewhat schizophrenic.

Sounds like his trader side is flaring up again. (But honestly, I really don’t know what these people are trying to do with the banks. I think they want them quasi independent, sort of like a fascist relationship re: Germany, Japan pre WWII.)

Not claiming to know. Wonder what Cramer would say more on the matter.

[mono]

There is one problem with putting all your chips on the Obama market and the Obama economy. It will come back positively as all American economies do and when it does it will still be the Obama economy. Even Obama cannot destroy the inherent strength of 300 million American consumers. The same thing happened in the early days of the Clinton administration and I winced as the GOP played right into his hands with doomsday predictions that would not and did not come true.

[Beagle8U]

“Take away peoples’ guns? BIG populist deal. But take away their “right to drive whatever they damn well please”? Or make it too expensive? BIG HONKING HUGE ELEPHANT SIZE populist issue!”

How about a 2000% tax increase on loose tobacco? You know, the stuff that the working poor use to roll their own cigarettes because they can't afford to buy the over taxed prerolled ones.

That huge tax takes effect April 1st ( that is fitting huh?)

People are livid over that and I'll bet the majority of them voted for the commie bastard!

[concerned about politics]

People are livid over that and I'll bet the majority of them voted for the commie bastard!

Why would they care? We pay for their cigarettes. They don't get food stamps anymore. They get 'everything paid in advance ' debit cards. (Food stamps hurt their self esteem.)

[Nervous Tick]

>> People are livid over that and I’ll bet the majority of them voted for the commie bastard!

Yep, IMO the roll your own tobacco thing was an obscene abuse of power... and I don’t even like smoking.

These things change voters’ minds.

[ROLF of the HILL COUNTRY]

“This will be similar to the Soviet economy or the Cuban economy.”

At the rate the market is falling (and everyone’s savings with it), I'm thinking North Korea.

[concerned about politics]

I'm thinking North Korea.

Speaking of Korea - The left wants the missile shield dismantled. When Korea eventually does test their long range missile, it'll get a free pass. The left would get very "angry" if Oboma were to shoot it down before it landed in Alaska.