The Obama Bear Market and my 201K
Obama's Radicalism Is Killing the Dow
Excerpt:
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.
Comment: Joke: "My 401K became a 201K!" (But who's laughing!?). They are calling this "the Obama Bear Market".
Who's laughing is right. Of course we should try to be stable and not veer too far in either extreme and it's possible to be too negative as well. But on the other hand, for quite some time now I've thought the economy is no joke and it gets a bit old listening to people laugh it off as if it's no big deal. I just looked at a couple of stocks in my portfolio and they are at levels they have not been in literally decades. And these are stable, Fortune 1000 companies, not some fly by night outfits.
ReplyDeleteOn the other hand, maybe posting my link to "Rollover" was too bleak and that's a bit extreme on the negative end. Lol, maybe it's a good idea you didn't post it. :)