Folks, I’m 50 years old. I’ve been around a bit. I know a campaign speech when I see it, and last night, when the president unveiled his latest plan to create jobs and boost the economy, it was the official launch of his reelection campaign. They even moved it up so Americans wouldn’t miss the football game. How about that?
Don’t get me wrong—there were a few of things that I liked. Extending the payroll tax holiday is good, and so are tax cuts for small business. And I’m thrilled to hear that the free-trade agreements with South Korea, Panama and Columbia that have been sitting on the president’s desk for three years will finally go to Congress. But beyond that, there was no meat on the bone—no real structural reform, and no satisfying explanation of how he plans to pay for it. As John Ransom, editor of Townhall Finance, put it on the show this morning, the president is putting forward nothing different than what’s been tried and didn’t work in the past, and with a smaller dollar amount, and he’s expecting a different result.
My fellow Chicagoan tried to do his best Reagan imitation, but he couldn’t peel off the Carter mask. Government doesn’t create wealth, it redistributes it. If $4 trillion didn’t work, what makes him think that another $450 billion will?
As I mentioned yesterday, lately there’s been a strong relationship between the Eurocurrency and the U.S. stock market. On a percentage basis, they’ve been moving together very closely. Eventually, we have to see a decoupling—the Euro will continue to go down and the stock market will grind its way higher. That decoupling is the leak—the key that will tell us when the market will start to rally, possibly to the end of the year.
Before I go, I just want to acknowledge the anniversary of 9/11 and extend my sympathies to all the Americans who lost loved ones that day. I offered some personal thoughts and memories on the broadcast this morning, but heading into this emotional weekend I wanted reiterate one thing here on the blog: if you’re walking by a fire station, take a minute to stop and thank the guys for what they do every day. Shake their hand or give them a hug. They deserve it.