Why Wall Street Razzed Obama

 |  Includes: DIA, QQQ, SPY
by: Alex Filonov

Wall Street congratulated our new President yesterday: the Dow Jones fell 332 points. Was it because he is a Democrat? Stocks historically did better under Democratic presidents. Because he is planning to raise some taxes, eventually? Wall Street knew it all along. This is about something which became known yesterday, during the inauguration.

Maybe this: the "new era of responsibility"? Maybe Wall Street thinks that the President really means it and instead of throwing as much money as the Fed can print at the problem, he'll start counting it?

Responsibility is good. But it won't fix our current mess. Whatever multiple Japanese governments did in the 1990s, they were not irresponsible, it just wasn't enough. We are in Great Depression 2.0, and the only way out is to print money and spend it. If deflation takes hold, it will be too late. Mr. President, please instruct Treasury to work with the Fed to throw more money into the system. Uncle Ben knows that we need it, he'll do his part. Right now I don't even care if this money is spent on some good projects or just thrown down from helicopters on poor neighborhoods. Whatever is necessary to increase the amount of money in circulation, not on bank reserve accounts.

Let's be irresponsible. Let's spend tons of money, for good or not, and defeat deflation while it's still a baby. Just drown it in money!