It appears that yesterday's 150-point gain in the NYSE was a dead-cat bounce. That was all erased and thensome as the NYSE took a 281-point nose dive today. Today, President Obama held a health care "summit" at the White House. It is unknown whether or not he made any stock picks for the assembled group.
In showing a lack of knowledge in the stock market, President Obama audaciously made the following comment yesterday:
Obama said he is not measuring policies against "the day-to-day gyrations of the stock market." "And, you know, the stock market is sort of like a tracking poll in politics. It bobs up and down day to day, and if you spend all your time worrying about that, then you're probably going to get the long-term strategy wrong."
Well, maybe he should be as we see in the following chart.
While the stock market did show a marginal rise today, the reality is that is has been in a free-fall since President Obama was elected on November 4, 2008. The close of the market today was 6,785.84. That is still well below the 7,000 level that many thought could be a bottom of this free fall. NOT!
If you though that the "gyration" comment was not bad enough, President Wall Street Obama had some more sage advice:
“Profit and earning ratios are starting to get to the point where buying stocks is a potentially good deal if you’ve got a long-term perspective on it.”
Besides the fact that it is price-to-earnings ratio, where in the hell does President Wall Street Obama think anyone has the money to have any perspective on it?! As the above chart shows, since you were elected President Wall Street Obama, the stock market has taken a precipitous dive. It is not a "gyration". It is people's life savings and investments. And for many people, it is a near wipe-out.
The stock market is a relative long-term mechanism for where the overall economy will be anywhere from six months out. The stock market and investors do not like what they are seeing coming out of the Wall Street Obama administration. And the long term trend continues to go down.
The stock market does not like the so-called economic "stimulus" plan just signed into law. It does not like seeing the tax hike, monstrous deficit spending and the lack of direction in finally getting a handle on the financial sector troubles.
One only hopes that the Republicans in congress have rediscovered their resistance to this approach and mean it. Too many Republicans contributed to this problem in the first place.
House Minority Whip, Eric Cantor (R-Virginia) called out President Wall Street Obama on these insipid comments.
What is needed is for the president to bone up on making comments about the stock market when it is clear that he does not know what he is talking about. Because of his insipid comparison of the dropping stock market to a tracking poll, it caused the stock market to drop further yesterday.
One can suppose that if President Wall Street Obama should run for reelection in 2012 and lose, he can always become a stock analyst on his favorite business network, CNBC.
5 comments:
EXCELLENT post!
despite the finacial ramifications of obama's attack on wealth 64, four more years of destroying prosperity is going to destroy the psyche of individuals. and that destruction will be far more harmful than a drop in the stock market!
The president-in-training flubs another one.
I have a suggestion, why doesn't Obama just keep his mouth shut for a week and lets see what happens with the market?
My suspicion is that the market doesn't trust this guy and I think that is a pretty fair assessment.
Yup, so this looks like you're right in line with the latest wingnut talking point.
Good luck with that.
I agree with Pat Jenkins. The damage done to the American psyche is far worse that any stock market drop. In my humble opinion, that is part of the problem now. President Pied Piper Obama has been leading the mindless electorate and being the biggest doomer and gloomer there is.
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