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Many have argued that poor President Obama inherited this economic mess from President Bush which is why the market is still dropping faster than Obama’s approval rating. However, one has to examine what has happened since September of 2008 to realize that we were already on the socialist course.
We wasted taxpayer money last year in September when we did TARP 1 and allocated $700 billion for failing financial institutions, many of which are still failing and will continue to fail. The greatest example is AIG which blew through taxpayer money faster than congress normally does, which is an accomplishment.
The bailouts proved fruitless since the bad business practices remain in these companies. However, President Obama was an ardent bailout support and shoved billions more down our throats in bailouts which have also proved completely fruitless. His “stimulus” bill hasn’t stimulated a single thing nor has it saved or created a single job, it was a sham, which is no surprise. It stimulates the size of government, nothing more.
When something doesn’t work the first time (bailouts), doing it again and expecting a different result is the definition of insanity.
First, FOX News reports on the new unemployment numbers:
WASHINGTON — The nation’s unemployment rate bolted to 8.1 percent in February, the highest since late 1983, as cost-cutting employers slashed 651,000 jobs amid a deepening recession.
Both figures were worse than analysts expected and the Labor Department’s report shows America’s workers being clobbered by a wave of layoffs unlikely to ease in the coming months.
“There is no light at the end of the tunnel with these numbers,” said Nigel Gault, economist at IHS Global Insight. “Job losses were everywhere and there’s no hope for a turnaround any time soon.”
Since the recession began in December 2007, just two months after the Dow Jones industrial average hit a record high of 14,000 and the unemployment rate stood at 4.7 percent, the economy has lost 4.4 million jobs, more than half of which occurred in the past four months.
The net loss of 651,000 jobs in February came after even deeper payroll reductions in the prior two months, according to revised figures released Friday. The economy lost 681,000 jobs in December and another 655,000 in January.
Employers are shrinking their work forces and turning to other ways to slash costs — including trimming workers’ hours, freezing wages or cutting pay — because the recession has eaten into their sales and profits. Customers at home and abroad are cutting back as other countries cope with their own economic problems.
With employers showing no appetite to hire, the unemployment jumped to 8.1 percent from 7.6 percent in January. That was the highest since December 1983, when the jobless rate was 8.3 percent.
So what genius plan does Obama have to help businesses cut costs and retain workers? Raising taxes on them, of course. Yes, in this time of high unemployment and worsening recession, President Obama has decided to begin taking more money from your wallet and more money from businesses making over $250k, which is every major business. Thus, these businesses will now have to contend with a slowing economy and a higher tax burden, what genius thinking on the part of the administration. There is no greater incompetence on the part of government, which is indisputable.
Now come the numbers on the stock market which can no longer be said is still reeling from whatever President Bush may or may not have done.
Report from FOX News on the Dow downer:
The Dow Jones Industrial Average has fallen faster under President Obama than under any new president in at least 90 years, according to a review conducted by Bloomberg.
Bloomberg reports that since Inauguration Day, the Dow has fallen 20 percent, leading at least one investor to dub this the “Obama bear market.” The Dow has also dropped 31 percent since Election Day.
Despite a string of government bailout offers and Obama’s advice earlier this week that Americans should be buying stock while shares are low, the Dow has continued to freefall.
Bloomberg reported that Obama is at risk of breaking a historical trend — in which the Dow soars an average of close to 10 percent in the first year after a Democrat wins the presidency.
Perhaps Obama will break the trend because this is the year after a Socialist won the presidency, not a run of the mill Democrat.
Next, CNBC’s Jim Cramer isn’t going down without a fight:
I am a fight-not-flight guy, so I was on my hackles when I heard White House Press Secretary Robert Gibbs’ answer to a question about my pointed criticism of the president on multiple venues, including the Today Show.
“I’m not entirely sure what he’s pointing to to make some of the statements,” Gibbs said about my point that President Obama’s budget may be one of the great wealth destroyers of all time. “And you can go back and look at any number of statements he’s made in the past about the economy and wonder where some of the backup for those are, too.”
Huh? Backup? Look at the incredible decline in the stock market, in all indices, since the inauguration of the president, with the drop accelerating when the budget plan came to light because of the massive fear and indecision the document sowed: Raising taxes on the eve of what could be a second Great Depression, destroying the profits in healthcare companies (one of the few areas still robust in the economy), tinkering with the mortgage deduction at a time when U.S. house price depreciation is behind much of the world’s morass and certainly the devastation affecting our banks, and pushing an aggressive cap and trade program that could raise the price of energy for millions of people.
The market’s the effect; much of what the president is fighting for is the cause. The market’s signal can’t be ignored. It’s too palpable, too predictive to be ignored, despite the prattle that the market’s predicted far more recessions than we have.
One by one, everyone is realizing that Obama’s socialism is abysmal for our capitalist system and the arguments are coming in tenfold now.
Michael Boskin at the Wall-Street Journal sounds off:
It’s hard not to see the continued sell-off on Wall Street and the growing fear on Main Street as a product, at least in part, of the realization that our new president’s policies are designed to radically re-engineer the market-based U.S. economy, not just mitigate the recession and financial crisis.
The illusion that Barack Obama will lead from the economic center has quickly come to an end. Instead of combining the best policies of past Democratic presidents — John Kennedy on taxes, Bill Clinton on welfare reform and a balanced budget, for instance — President Obama is returning to Jimmy Carter’s higher taxes and Mr. Clinton’s draconian defense drawdown.
Mr. Obama’s $3.6 trillion budget blueprint, by his own admission, redefines the role of government in our economy and society. The budget more than doubles the national debt held by the public, adding more to the debt than all previous presidents — from George Washington to George W. Bush — combined. It reduces defense spending to a level not sustained since the dangerous days before World War II, while increasing nondefense spending (relative to GDP) to the highest level in U.S. history. And it would raise taxes to historically high levels (again, relative to GDP). And all of this before addressing the impending explosion in Social Security and Medicare costs.
To be fair, specific parts of the president’s budget are admirable and deserve support: increased means-testing in agriculture and medical payments; permanent indexing of the alternative minimum tax and other tax reductions; recognizing the need for further financial rescue and likely losses thereon; and bringing spending into the budget that was previously in supplemental appropriations, such as funding for the wars in Iraq and Afghanistan.
The specific problems, however, far outweigh the positives. First are the quite optimistic forecasts, despite the higher taxes and government micromanagement that will harm the economy. The budget projects a much shallower recession and stronger recovery than private forecasters or the nonpartisan Congressional Budget Office are projecting. It implies a vast amount of additional spending and higher taxes, above and beyond even these record levels. For example, it calls for a down payment on universal health care, with the additional “resources” needed “TBD” (to be determined).
Mr. Obama has bravely said he will deal with the projected deficits in Medicare and Social Security. While reform of these programs is vital, the president has shown little interest in reining in the growth of real spending per beneficiary, and he has rejected increasing the retirement age. Instead, he’s proposed additional taxes on earnings above the current payroll tax cap of $106,800 — a bad policy that would raise marginal tax rates still further and barely dent the long-run deficit.
Increasing the top tax rates on earnings to 39.6% and on capital gains and dividends to 20% will reduce incentives for our most productive citizens and small businesses to work, save and invest — with effective rates higher still because of restrictions on itemized deductions and raising the Social Security cap. As every economics student learns, high marginal rates distort economic decisions, the damage from which rises with the square of the rates (doubling the rates quadruples the harm). The president claims he is only hitting 2% of the population, but many more will at some point be in these brackets.
Boskin goes on further with more evidence here.
The bottom line is that Obama is clueless when it comes to spurring growth in the economy, he’s a financial dunce who doesn’t know a investor from a trader.
Thanks for your “help” President Obama, but please stop. We can’t afford it any longer.
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Nate, You do realize that the tax rollback isn’t going to happen until 2011? You make is sound like he is taxing them during the current recession.
I think a lot of obama’s problem is that he doesn’t understand the concept of prioritizing. IF – and that’s a big IF – his goal was a positive one for the economy and the nation, he would stop with the flood of nonessential programs, and concentrate on the number one priority – and its still the economy, stupid! His hatred for Wall Street will the death of us all before it’s over with. His speech writers are grasping at anything to make a headline (a bankruptcy every 20 seconds due to healthcare costs? REally!), and overlooking the fact that their boss – obama – is becoming the biggest headline they NEVER wanted.
Of course, his agenda is clear – push through all the socialist programs he can before the koolaid wears off the taxpayers catch on to the fact that they’ve voted in a civil rights attorney who doesn’t have a clue. Much like Ron White (the comedian), he has the right to remain silent – he just doesn’t have the ability. Or wisdom.
JD, the fact that he’s talking about it for any time line is enough to start an avalanche of reactions from Wall street and taxpayers, and we’re seeing that now.
Has anyone been following the outrage going on in the state legislatures? There have been 16 states so far with more promising to come where they have introduced bills and legislature declaring 10th Admendment sovereignty against the stimulus bill.It seems the states don’t want to be saddled with future debt to cover the Presidents stimulus bill.Information can be found at:
http://www.humanevents.co.....amp;s=rcmp
Fox News/Opinion Dynamics survey out Thursday shows 63% of Americans approve of the job the president is doing.
And/But: About 41% approve of his colleagues’ work on the Hill.
Dates conducted: March 3-4. Error margin: 3 points.
http://thepage.time.com/m.....mics-poll/
And that 63% is back up from 59% last week, JD. Didn’t it start out at around 77% or so?
thanks for asking Babs. His rating has held steady at around 61 – 67 % depending on the poll.
As we all know, polls are polls. Take them for what ever worth you want.
True, I’ve never put much stock in them. But as to Nates comment, they did drop on the RCP poll to 59%. I just noticed today they were back up.
What’s funny to me is that a huge majority is still saying in the polls that the country is headed in the wrong direction. If they believe that, why are obama’s approval ratings that high? *L*
Oh, JD, the RCP poll (you can see it under “polls” on the right) is back down to 60.9 for obama’s approval ratings. Just FYI
DDMao
As you know most times when States take money from Feds there are restriction, regulations, etc.
Some States must change their State laws to get this money for unemployment compensaation”. States will be given money for 2 years, but must pay unemployment wages to enlarged group forever.
I am guessing there is many hidden catches to this money
There is no mention of the hike in prices for energy because of the “cap & trade” policy. We will all pay significantly higher prices for our utilities. Businesses are not going to be hiring because of the president’s policies. More middle class people are going to feel the pain for a long time to come due to the policies that are about to take place unless, of course, they are government employees. Then everything will be fine.
jd
Bill Clinton raised taxes, it was not until ddetermined new Republican controled Congress forced tax cuts as well as smaller government ,that Bill Clinton balanced it. He tried 5 budget bills before he acceped his fate…balanced budget.
Income for government increases with lowered taxes. Proof and links are on this site.
Reagan had worse economy since Depression. Yes,he put us in debt like o. That ends comparasion to o. Reaganeconomics lead to longest “BULL MARKET” in our history, if not the world.
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DDMao
Finally got to your link. I appreciate your links. This one is great.
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Nate
I have been wishy-washy on TARP. I stand strong for Capitolist rule. A business lives that provides a service enough people want. At a price they will pay. If no one wants or anorher does better it fails.
TARP puts AIG or who ever on “life supports.” Maybe a few will live. Will America live or pay for those $ Trillions lost(without government, AIG most likely would have been devided up)
We force our children to take awfull tasting liquiod medicine. So they will live.
PJ
You are right..”Caron Tax” will add cost to all things. Our goods over seas can fall. Jobs lost.
“The Intentional Obama Recession Has Arrived”
The content doesn’t quite match the fiery rhetoric that is the title, does it? That just screams out “I need attention”. But if that’s your sort of game, I can help you find all sorts of videos on youtube “proving” that the mastermind behind 9/11 was president Bush.
Is the RNC actually paying you to put up this crap? I could swear this site used to have dignity…
bones
“I can help you find all sorts of videos on youtube “proving” that the mastermind behind 9/11 was president Bush.”
Kind of funny “proof is on youtube”
You should turn this evidence over immediately to the F.B.I. and CNN
Everyone has their opinion on what a president should be doing yet nobody seems to be doing anything other than talking about it. Sometimes I wish rather than shouting opinions that people would go out and do something about it. Why are these seemingly genius people not the ones running for office and changing the world as they seem their opinions would do?
I’ll agree that it’s an INTENTIONAL recession, like the Great Depression. The goal: to make people eager for socialism.
“This recession is broader, deeper and more complicated than virtually anything we have ever seen,” Wachovia Corp. economist Mark Vitner said. “The whole evolution of the credit markets resulted in all sorts of complex financial instruments that are difficult to unwind. It’s like trying to unscramble scrambled eggs. It just can’t be done that easily. I don’t know if it can be done at all.”
“Recession on track to be longest in postwar period”
http://news.yahoo.com/s/a....._recession
Warren Buffet told CNBC Monday the economic crisis is very “close to the worst case” that he had imagined.
But: Says conditions would be far worse if the Fed hadn’t stepped in last September.
Plus: Adds GOP has “obligation” to back Obama to help fight the economic war “in a big way.”
Video:
http://www.cnbc.com/id/15.....amp;play=1
Transcript:
http://thepage.time.com/c.....quawk-box/
News Article:
http://www.cnbc.com/id/29592831
jd
Do you know how Warren Buffet decides to buy big shares of businesses. What he does when he buys. What’s his “vested interest”are,why he backs o and reason he goes on CNBC. How is his company doing ? How much are his investors making now ? Did you know T. Perkins stopped his hugh wind mill farm and why ?
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Now, I watch CNBC when market is open and I am trading. Sometimes a “expert” comes on and says stock “A” is greatest thing since “sliced bread”. I buy it, it goes up a few minutes, then drops. If lucky I break even. Sometimes I watch “expect” praise “B” and his stock jumps…How do you know who to believe ?.What I learned was to do my homework when buying stocks, listen to people talk on CNBC, just don’t take it as gospel…..Monday the sky is falling on CNBC but Tuesday God is coming. Who knows about Wenesday………
Warren Buffet has an agenda. We all do. Remember when Bush said economy not so bad. Remember reaction. That was less than 6 months ago. Less than, what, a few days AGO, o was saying economy in the “bottomless pit”.Now is not…
Buffet, Bush, and o. What statistics do they provide…Ohhh, economy always gets better. No numbers or solid evidence. You can bet they would give them if they had any.
As a day trader there are many things I study. Insiders trading, rating, volume, historic pricing. I’m into channeling stocks….As such I look at the movement of the price and “spread”…
The point is this. I don’t buy at the bottom. You see bottom is guessing. I look for upward trend in historic prices of that particular stock. True, that stock can show good signs and go back down. In a market we have now, there is just too much risk.
Volume is important. When you see it rise folks are buying. Bringing their money out from under their watress. With unemployment dropping times are looking better. The market seems to be cooking.
When quartly reports start coming out and compaies show expected growth, “spread” for your stock widens, then I start trading again.
I did not provide all factors here. Just trying to give an idea of process. When trading, I spend at least 4 hours studying 5 days a week and eyes frozen to ticker during market hours. Depending on price of stock, I’s looking for 25-!.00 plus positive spread as my profit hopefully within that day or next..
Old saying..Buy low and sell high…Does not mean buy at lowest price and sell at highest price.
Bill – “Buy low and sell high…Does not mean buy at lowest price and sell at highest price.”
Where did Warren or myself say this? I think you missed the point of the article I posted.
Warren didn’t even talk about stock pics but was questioned about his thoughts on the economy but thanks for the lesson about the market.
jd
I gave my personal lesson. I do not expect you to learn a thing from it.
I made no mention of your links. I was not commenting on them. If I was, I would have quoted from it as I do. Like when I tear your comments into nothing !
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jd said
“Bill – “Buy low and sell high…Does not mean buy at lowest price and sell at highest price.”
Where did Warren or myself say this? I think you missed the point of the article I posted.”
jd__You’re jumping to conclusion. Stupid, stupid, stupid.. Don’t put words in my mouth. If I was quoting you two, you would know it !! See how I quote you, look above !
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jd, you really made a fool of yourself on this one you know. You left out “two” very important words (Old saying..) on my quote and fact I did not use (” “).
Kind of ruins your case I was quoting you or Buffet! Not to mention I wasn’t quoting! Kind of back-fired on making me look bad. Not even a good “college try”
You’re do better making comments and not trying to make me look bad
You got me, Bill. Man…why do I even bother.
jd
My first comment to you was not giving you hard time. I actually was giving you my experiences in matters I have some knowledge. You choice to see it in a different way.
I learn everyday. I find no shame in that. You tried to put me down. I can be very good at defending myself.
Shall we have free exchange of comments. Accept mistakes we make, with unqualified..Sorry and/or wrong. No excusses. A civilized response.
Refuse the new $1.00 COIN….In God We Trust…is gone