Wall Street Is Short Barack Obama 37 comments
an article to
-
Font Size:
-
Print
- TweetThis
On Wall Street, the Barack Obama honeymoon has already finished before it even started. The Dow Jones Industrial Average short term high of 9625 was established on November 4, 2008 – Election Day. The stock market has collapsed towards 6800 through spirit-breaking headlines of Citigroup’s (C) imminent collapse, foreclosures, and yet another round of billions of dollars in bailout money for American International Group (AIG). Still, we already knew that.
Partisan wrangling and the New Administration’s failure to communicate have highlighted the downdraft. The surreal happenings are made ever more cryptic by a glad handling media and financial regime reluctant to outwardly present anything short of otherworldly praise for Barack Obama's "Change" at 1600 Pennsylvania Avenue. The players have been smiling on camera, while liquidating behind the scenes – in typical Wall Street fashion.
A recent Business Week poll of anonymous voters indicates that 42% of respondents blame Obama for mismanagement of the economy. Personally, I would offer that the economy has not been mismanaged; it is the mismanaged expectations that were allowed to dominate reality. Objectively, the first 100 days have been a public relations fiasco that nobody has the audacious gall to admit.
Treasury Secretary Timothy Geithner should have been the very first appointment to the cabinet. While Bill and Hillary Clinton were being appeased with a Secretary of State parting gift – the Dow Jones Industrial Average was crumbling by 1500 points during the two weeks that we were operating in fiscal policy limbo. Traders were held hostage by a lame duck loose cannon Hank Paulson until this Invisible Man Treasury Secretary emerged from behind the veil.
The stock market stabilized through Inauguration Day on the strength of Geithner’s alleged financial wizardry and the fawn fest reserved for our latest savior, Barack Obama. Our President’s bold proclamation of "Change" and his complete refusal to steal his Treasury Secretary’s thunder effectively captivated Wall Street. We didn’t know what it was, but whatever it was – it was certain to be big. On February 10, 2009, Timothy Geithner delivered his pitch:
Without credit, economies cannot grow at their potential, and right now, critical parts of our financial system are damaged. Unless we restore the flow of credit, the recession will be deeper.
We already knew that. The smoke and mirrors, dog and pony show degenerated into a fiasco of general rhetoric, tired clichés, and no details. The PR debacle hammered stocks and must be acknowledged as the most significant gaffe of the new Obama Administration.
The happenings opened up the controlling Democratic Party to attack on all flanks. Moderates have broken rank, House Republicans ripped the stimulus package en masse, Rick Santelli is threatening to dump monitors into Lake Michigan, and Rush Limbaugh is actually relevant again.
The Wall Street voting bloc is alarmed by the prospect of higher taxes used to finance a populist agenda of alternative energy, housing bailouts to unqualified homeowners, and health care reform. Ironically, blue blood Wall Street rallied around Barack Obama throughout election season. We must speculate that a crushing bear market and real estate bust have destroyed the goodwill of this group. The wealthy have little incentive to bankroll another round of tasty cake pork barrel spending.
Wall Street is voting with its wallet.
Related Articles
|
-
The Seeking Alpha 100
See allThe top 100 stock
market authors
selected for publication
Seeking Alpha 100 » -
Fastest Climbers
Authors with the largestSee all
increase in followers
in the last 7 days
Fastest Climbers » -
Top Commenters
Top commenters,See all
as ranked by their peers
Top Commenters » -
Top Instabloggers
The 100 most activeSee all
Instabloggers.
Top Instabloggers » -
Top StockTalkers
TopSee all
StockTalkers.
Top StockTalkers »
On Mar 06 10:43 AM patio wrote:
> plumstupid, did you choose your handle because moronicsocialistidiot
> was taken?
On Mar 06 11:11 AM moronicsocialistidiot wrote:
> Who you calling socialist?
"...Do you pine for me - the way I pine for you? Please. Please, say Yes...
No.
You are a ho.
I hear the stories - but I don't believe them. Nope. Not my Green Eyes. Not, Miss Precious. How could my sweet, delicate flower do this to me? How could she treat me..."
...ooooookaaay -- I hope you'll pardon me if I don't seek your investment advice.
On Mar 06 03:34 PM sether wrote:
> attention all fearful, fat, white, petty stock speculating, FOX watching,
> 60-something, arterial sclerotic piggies. You have nothing to fear
> from the new regime of the great unwashed; so long as you take your
> tax hike with a smile, keep your petulant cake-holes shut, and fade
> quietly into political and economic irrelevance. That is your future.
> I enjoy the fact that you will spend the waning years of your life
> gnashing your teeth and crying bitter piggy tears. Squeal piggies,
> squeal louder, SQUEAL.
I beg to differ...STRONGLY. The *lowlights* have been attempts to usher in total Marxism, and the more-than-attempts...t... actuality...of bringing in utterly corrupt, tax-dodging appointees to help run the show!!! Failure to communicate has very little to do with it -- WHAT was communicated is the problem!!! WHAT is being done is the problem.
come take your free lunch. it's free. hope you like lead. come on little piglet. come take your lunch. hope you got a taste for the lean meat of a predater. oops i mean succulent pork. i guess i'll use you for fertilizer. think you'll mix well with manure.
pretty sure i made my gains by my own labor but just for fun let's say i took it from weaklings like you. bleat his name obahahahamahahaha.
usually i like reasonable conversation but there are exceptions. come take your free lunch little piggy. i'm weak and helpless. easy prey for you. come on over. i'll give you exactly what you deserve.
Good humor!
I liked the part about "otherworldly praise" Obama receives from the media and Wall St., while it quietly liquidates. To me, all praise for him must be otherworldly at this point.
Not just due to mismanaged expectations. Hello, most of us are screwed or getting to it thanks to actual ongoing longterm mismanagement of reality. And Obama officially has his own personal bear market in just 5 weeks.
How come someone who lives/breathes government can't find enough qualified hacks for open positions and have policies ready once they're in office? I read Treasury is still minus 50 top positions which leaves Geitner overexposed. I also disagree that he wasn't appointed soon enough. We might be down another 10% if he were.
It's not all about the dog and pony show. And maybe partisanship against Obama has something to do with elevating Summers and backbenching Volcker. And the token Republicans who were to be Commerce Secretary, I forget how many tries there.
I think anybody with real life common sense knows we're in enough trouble that it won't be easy. But, this idea that image is reality has played itself out. If Obama were as klutzy as Gerald Ford but had solutions without such obvious fealty to DC and to banksters a lot of us would have been very relieved and grateful.
For the Love of Money:
onyxinvestments.blogsp...
www.associatedcontent....
Cool...
On Mar 06 01:19 PM raytayzmd wrote:
> ..."...recent Business Week poll of anonymous voters indicates that
> 42% of respondents blame Obama for mismanagement of the economy."...uhhh,
> the guy's been in office hardly a month and they're doing polls on
> how his management?...let's see, if I put you in a rowboat and dropped
> you in the middle of a tsunami, how well do you think you would do?..."The
> Wall Street voting bloc is alarmed by the prospect of higher taxes..."...that's
> where you should have stopped...if all those expenditures you mentioned
> served to enrich Wall Streeters at the expense of Main Street, no
> doubt their roar of approval would be deafening...and WTF is this
> from your website:
>
> "...Do you pine for me - the way I pine for you? Please. Please,
> say Yes...
> No.
> You are a ho.
> I hear the stories - but I don't believe them. Nope. Not my Green
> Eyes. Not, Miss Precious. How could my sweet, delicate flower do
> this to me? How could she treat me..."
>
> ...ooooookaaay -- I hope you'll pardon me if I don't seek your investment
> advice.
On Mar 06 03:58 PM fireball wrote:
> sether
> come take your free lunch. it's free. hope you like lead. come on
> little piglet. come take your lunch. hope you got a taste for the
> lean meat of a predater. oops i mean succulent pork. i guess i'll
> use you for fertilizer. think you'll mix well with manure.
> pretty sure i made my gains by my own labor but just for fun let's
> say i took it from weaklings like you. bleat his name obahahahamahahaha.
>
> usually i like reasonable conversation but there are exceptions.
> come take your free lunch little piggy. i'm weak and helpless. easy
> prey for you. come on over. i'll give you exactly what you deserve.
On Mar 06 01:19 PM raytayzmd wrote:
> ..."...recent Business Week poll of anonymous voters indicates that
> 42% of respondents blame Obama for mismanagement of the economy."...uhhh,
> the guy's been in office hardly a month and they're doing polls on
> how his management?...let's see, if I put you in a rowboat and dropped
> you in the middle of a tsunami, how well do you think you would do?..."The
> Wall Street voting bloc is alarmed by the prospect of higher taxes..."...that's
> where you should have stopped...if all those expenditures you mentioned
> served to enrich Wall Streeters at the expense of Main Street, no
> doubt their roar of approval would be deafening...and WTF is this
> from your website:
>
> "...Do you pine for me - the way I pine for you? Please. Please,
> say Yes...
> No.
> You are a ho.
> I hear the stories - but I don't believe them. Nope. Not my Green
> Eyes. Not, Miss Precious. How could my sweet, delicate flower do
> this to me? How could she treat me..."
>
> ...ooooookaaay -- I hope you'll pardon me if I don't seek your investment
> advice.
How come someone who lives/breathes government can't find enough qualified hacks for open positions and have policies ready once they're in office?
Because the man has never managed so much as a shoe store. How the hell can he be expected to figure this out so quickly? Give him a few years will ya. He doesn't have that much political experience. He just arrived in the Senate recently.
Even an Economics 101 student would realize the momentum that is carrying the market now is the consequence of inaction last fall.
Nothing that Obama and the Democrats have done since the election will even manifest itself untill late this summer at best. ... about when many economists (including Bernake) are looking to see improvement. Too bad Bush took a powder the last six months in office!
No one is trying to pin anything on Obama. This disaster is simply not his fault. The whole point is that he is sounding and behaving like a socialist and that is driving the markets down further. Wake up and pay attention. Blind adulation of anyone is dangerous.