Tuesday, February 17, 2009

Obama is Death to Capital Markets

On Nov. 4, after Barack Obama clinched the White House, the market closed at 9,625.28.

In mid-morning trading today, the day President Obama signs his massive Generational Theft Act into law and a day before he unveils a massive new mortgage entitlement, the Dow dropped to to 7,606.53.

Now, imagine if President Bush had presided over a 2,000-point stock market tumble in the same time period — during the first few months of his presidency. _MM
Actually, Obama's effect on the market goes back further and is far more profound than the quote above indicates. At mid-September 2008, the DJIA was orbiting about the 11,400 mark. Once investors realized in mid-September that Barak "Milli Vanilli" Obama was likely to be chosen by American voters, stocks began to plunge. Subtracting 7,600 from 11,400, one obtains a 3800 Obama stock crash -- so far.

In truth, Obama's destruction of capital markets is just beginning. The neo-fascist lip-synching president is doing everything precisely wrong. He is shifting the center of gravity from the private sector to the extortionate public sector. He is burning the fields, destroying all possible seeds of recovery, and salting the soil.

Rather than abolishing government marketplace distortions that brought on the current economic malaise, the new reich is solidifying them in-place, and building the distortions to catastrophic levels. Buckle up for the wildest economic roller-coaster ride of your life.


Snake Oil Baron said...

On the plus side, his economic touch of death is keeping oil prices so low that petro-villains are feeling like they are getting a Brazilian hair removal using duct tape and superglue.

I have been told that Iraq lacks the "capacity" to spend a large budget surplus so the bad price is less harmful to them now than it could have been and other oil producers have had no trouble wasting gobs of cash when the price was high.

America and Britain have further to fall economically due to their high starting level (hence longer to pull out of the nose dive) and they will be able to land on top of oil dictatorships and their European bankers who loaned them money.

Eshenberg said...

«Owners of capital will encourage the working class to buy more and more expensive goods, buildings and equipment. Pushing them to the fact that they took more and more expensive credits, until the credits will not be refundable.

Refundable loans led to the bankruptcy of banks, which will be nationalized and the state, and that eventually lead to communism ».

© Karl Marx, 1867

probably some "one" was right....clairvoyance