Wall Street Weekly | 07/24/2009 2:15 pm
Obama Slump Boosts Market, by Liz Peek
© AP
Bears, Bulls, Chickens and Pigs: wOw’s Wall Street Weekly with Liz Peek (Week of 7/20)
Editor’s Note: Liz Peek is a financial columnist and the author of wOw’s SHEconomics.
Has Obama’s slump in the polls boosted stock prices? The earth shook in Washington this past week as the administration’s push to enact health-care changes received a massive thumping from voters. Notwithstanding nonstop multiday hectoring from President Obama, polls indicate slipping support for his agenda, causing even his own party to slam on the brakes.To my mind, the sudden drop in enthusiasm for the president (his approval ratings are now below Bush’s at the same time in his presidency – a shocker, right?) means some tempering of his legislative free-for-all. For investors, the setbacks suggest a timeout from the endless stream of anti-business initiatives flowing from the Obama White House.
There has been serious (and in my view reasonable) alarm over the administration’s inclination to meddle with a wide swath of industry. The cap and trade bill, the financial regulatory overhaul, the upending of corporate tax law, the new consumer protection agency, the takeover of the autos – these are just some of the proposals the Obama team have spun out in recent months – creating uncertainty and anxiety while the country sank into a recession. Only a few days ago there was talk of a second stimulus bill, a prospect that scared the pants off inflation and deficit hawks. With Rasmussen reporting that only 25% of Americans believe that the stimulus bill passed earlier this year has been effective, I think we can assign that particular notion to the meat locker.
It is true that there are other reasons for the market’s delightful 38% rally in the Dow that we’ve seen since March and the astonishing 11% jump over the past eight days. Without a doubt the collapse in housing markets has stabilized, and job losses appear to be mitigating. Existing home sales were up 3.6% in June to an eight-month high, reducing inventories of unsold units to 8.9 months, the lowest so far this year. Meanwhile, the four-week moving average of unemployment claims dropped to 566,000 in the latest period, down from the peak of 659,000 in April. A decline of this magnitude has in the past confirmed the end of a recession.
Moreover, second-quarter profits exceeded expectations for about 75% of those companies reporting so far. Reports out have beaten both analysts’ forecasts and in many cases the firms’ own projections, leading to a boost in estimates for the balance of the year. Normally some 60% of companies report better-than-expected results, since corporations know that coming in shy of projections is the quickest route to the doghouse. These surprises, though, seem genuine. When companies presented their outlooks around the beginning of the year, it looked like the U.S. was heading into a depression. Visibility was poor, to say the least.
Though all these factors have boosted the stock market, there remains enormous uncertainty, much of it tied to government policy. It has been decades since the government of the United States has appeared so anti-business, and decades since the need to support business has been so vital. We need people to be put back to work and while job losses may be slowing, companies are still loathe to add to payrolls. Increases in second-quarter profits came primarily from cost-cutting, including layoffs. Consequently, productivity rose to an impressive 3.8%. Revenue growth was weak at best.
Only the government is hiring. Ultimately, government spending can only provide a modest and temporary boost to the nation’s economy since it is coupled to rising deficits. At some point, paying back those deficits requires higher incomes and tax revenues from the private sector.
Read more about: Approval Ratings, Barack Obama, Economy, George Bush, Health-Care Reform, Liz Peek, Money, News, Obama Administration, Paula Danziger, Recession, Stimulus Bill, U.S., Wall Street Weekly
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Absolutely Liz…just as Diamond noted, it is the Obama policies that need to fail. Americans are not buying the socialist leaning policies and power grabbing legislature that is forced down their throats.
They are waking up and they don’t like what they are seeing. Spending will loosen up when they start to see that their representatives are doing the work of the people and actually standing up for what they want.
Both Dems and Reps need to put the brakes on this spending train wreck. When the citizens see their parties working for the people instead of the President, their confidence will return.
Until then, they will isolated and protect what they have. I for one, will not be spending this Christmas. I think that deeds of caring and such will be on the top of my list…consumerism…not so much.
Now..if Obama were to resign….I may reconsider and all the drinks are on me!
Hey, Kelly,
What’s this 5 hours closed door lockdown that Waxman held in a last ditch attempt to win over the Blue Dogs?
So much for transparency! The Republicans can’t even get their amendments heard. I don’t like that at all.
obama’s resignation? I’ll buy the second round!
Andrea…Waxman needs to go…he is the poster boy for TERM LIMITS.
Kelly,
Check out Peter Fleckman/Flecstein’s blog when you have a chance: http://blog.flecksoflife.com/
As I understand it, Fleckman has been twittering all the loopholes in HR 3200, such as:
Pg 22 of the HC Bill MANDATES the Govt will audit books of ALL EMPLOYERS that self insure!!
Pg 30 Sec 123 of HC bill - THERE WILL BE A GOVT COMMITTEE that decides what treatments and benefits you get
Pg 29 lines 4-16 in the HC bill - YOUR HEALTHCARE IS RATIONED!!!
Pg 42 of HC Bill - The Health Choices Commissioner will choose your HC benefits for you. You have no choice!
PG 50 Section 152 in HC bill - HC will be provided to ALL non US citizens, illegal or otherwise
Pg 58HC Bill - Govt will have real-time access to individuals’ finances and a National ID Healthcard will be issued!
Pg 59 HC Bill lines 21-24 Govt will have direct access to your banks’ accounts for election funds transfer
PG 65 Sec 164 is a payoff subsidized plan for retirees and their families in unions & community orgs (ACORN).
Pg 72 Lines 8-14 Govt is creating a HC Exchange to bring private HC plans under Govt control.
PG 84 Sec 203 HC bill - Govt mandates ALL benefit pkgs for private HC plans in the Exchange
PG 85 Line 720HC Bill - Specs for Benefit Levels for Plans = The Govt will ration your Healthcare!
PG 91 Lines 4-7 HC Bill - Govt mandates linguistic-appropriate services. Example: Translation for illegal aliens
Pg 95 HC Bill Lines 8-18 The Govt will use groups (i.e., ACORN & Americorps) to sign up individuals for Govt HC plan
PG 85 Line 7 HC Bill - Specs of Ben Levels for Plans. #AARP members - your health care will be rationed.
PG 102 Lines 12-18 HC Bill - Medicaid-eligible individuals will be automatically enrolled in Medicaid. No choice.
pg 124 lines 24-25 HC No company can sue GOVT on price fixing. No “judicial review” against Govt Monopoly.
pg 127 Lines 1-16 HC Bill - Doctors/ #AMA - The Govt will tell YOU what you can make.
Pg 145 Line 15-17 An Employer MUST automatically enroll employees into pub opt plan. NO CHOICE
Pg 126 Lines 22-25 Employers MUST pay for health care for part-time employees AND their families.
Pg 149 Lines 16-24 ANY employer with a payroll of $400k and above who does not provide pub opt. pays 8% tax on all payroll
pg 150 Lines 9-13 Businesses with payroll between $251k & 400k who don’t provide pub. opt pays 2-6% tax on all payroll
Pg 167 Lines 18-23 ANY individual who doesn’t have acceptable HC according to Govt will be taxed 2.5% of income
Pg 170 Lines 1-3 HC Bill Any NONRESIDENT Alien is exempt from individual taxes. (Americans will pay)
Pg 195 HC Bill - Officers and employees of HC Admin (GOVT) will have access to ALL Americans’ financial and personal records.
PG 203 Line 14-15 HC - “The tax imposed under this section shall not be treated as tax” Yes, it says that.
Pg 239 Line 14-24 HC Bill Govt will reduce physician services for Medicaid. Seniors, low income, poor affected
Pg 241 Line 6-8 HC Bill - Doctors will all be paid the same, regardless of what specialty you have.
PG 253 Line 10-18 Govt sets value of doctor’s time, professional judgment, etc. Literally value of humans.
PG 265 Sec 1131 Govt mandates and controls productivity for private HC industries
PG 268 Sec 1141 Fed Govt regulates rental and purchase of power driven wheelchairs
PG 272 SEC. 1145. Treatment of certain cancer hospitals. Cancer patients: welcome to rationing!
Page 280 Sec 1151 The Govt will penalize hospitals for what it deems preventable readmissions.
Pg 298 Lines 9-11 Doctors who treat a patient during initial admission that results in a readmission will be penalized by the Govt.
Pg 317 L 13-20 PROHIBITION on ownership/investment. Govt tells doctors what/how much they can own.
Pg 317-318 lines 21-25,1-3 PROHIBITION on expansion- Govt is mandating hospitals cannot expand
pg 321 2-13 Hospitals have opportunity to apply for exception BUT community input required. Can you say ACORN?!!
Pg335 16-25 Pg 336-339 - Govt mandates establishment of outcome-based measures. HC the way they want. Rationing
Pg 341 Lines 3-9 Govt has authority to disqualify Medicare Adv Plans, HMOs, etc. Forcing peeps into Govt plan
Pg 354 Sec 1177 - Govt will RESTRICT enrollment of special needs people.! WTF. My sis has down syndrome!!
Pg 379 Sec 1191 Govt creates more bureaucracy - Telehealth Advisory Committee. Can you say HC by phone?
PG 425 Lines 4-12 Govt mandates Advance Care Planning Consult. Think Senior Citizens end of life
Pg 425 Lines 17-19 Govt will instruct and consult regarding living wills, durable powers of atty. Mandatory!
PG 425 Lines 22-25, 426 Lines 1-3 Govt provides approved list of end of life resources, guiding you in death. Excuse me???!?!?!?
PG 427 Lines 15-24 Govt mandates program for orders for end of life. The Govt has a say i n how your life ends
Pg 429 Lines 1-9 An “advance care planning consult” will be used frequently as patient’s health deteriorates
PG 429 Lines 10-12 “Advance care consultation” may include an ORDER for end of life plans. AN ORDER from GOV
Pg 429 Lines 13-25 - The govt will specify which Doctors can write an end of life order.
PG 430 Lines 11-15 The Govt will decide what level of treatment you will have at end of life
Pg 469 - Community Based Home Medical Services=Non profit orgs. Hello, ACORN Medical Svcs here!!?
Page 472 Lines 14-17 PAYMENT TO COMMUNITY-BASED ORG. One monthly payment to a community-based org. Like ACORN?
PG 489 Sec 1308 The Govt will cover Marriage & Family therapy. Which means they will insert Govt into your marriage
Pg 494-498 Govt will cover Mental Health Services including defining, creating, rationing those same services
Excellent, excellent job Andrea…people NEED to know these things…..So many UNACCEPTABLE hidden agendas….keep posting this where ever possible.
Thank you for taking the time.
Kelly,
Thanks to Peter Fleckman and his blog at http://blog.flecksoflife.com/ Absolutely, will post wherever possible - but please give this ex-Marine the credit by citing his blog whenever it’s posted.
And thanks to Deborah Kramer for sending this to me. You did good, girl!
And those who are so FOR the passing of this bill need to be fair and consider all these points. THINK FOR YOURSELVES.
Well Deber…Obama was transparent alright…he was telling Americans that he had "changes"…but so many did not believe it. There were warnings…plenty. Now he is trying to hide his agenda so that he can implement his socialist policies. Thank God that people, Dems and Reps…are BOTH questioning this radical agenda.
PRESIDENT OBAMA:" But let me even say before I even get inaugurated. During the transition we’re going to be calling all of you in to help us shape the agenda. We’re going to be having meetings all across the country with community organizations so that you have input into the agenda for the next presidency of the United States of America.’
(ACORN and the 400,000 admitted cases of voter registration fraud)
PRESIDENT OBAMA:" We cannot continue to rely only on our military in order to achieve the national security objectives that we’ve set. We’ve got to have a civilian national security force that’s just as powerful, just as strong, just as well funded."
What the hell??? Why does AmeriCorp need to be as strong and as well funded as our MILITARY??
EMANUEL: "Citizenship is not an entitlement program. It comes with responsibilities. Everybody somewhere between the ages of 18 and 25 will serve three months of basic training in a kind of civil defense. That universal sense of service, somewhere between ages 18 and 25 will give Americans once again a sense of what they are to be American and their contribution to a country and a common experience. And you look at World War II. That was a draft. This is not a draft. It’s a universal service. It is not an accident that we started our big march towards civil rights and expanding post World War II because the country came through and experienced together. "
REQUIRED? COMPULSARY? UNIVERSAL SERVICE???? DRAFT. A civil service military…to control who?
PRESIDENT OBAMA: It’s not that I want to punish your success. I just want to make sure that everybody who is behind you, that they’ve got a chance at success, too. I think when you spread the wealth around, it’s good for everybody.
What part of that did America not understand?
Consider these quotes of Obama mentor Frank Marshall Davis an avowed Communists; "Monopolies" like GM had to be controlled by the government, said Davis. "Before too long, our nation will have to decide whether we shall have free enterprise or socialism."
And people are shocked by the Obama take over of GM? Really?
PRESIDENT OBAMA:" Under my plan of a cap and trade system, electricity rates would necessarily skyrocket. Even, you know, regardless of what I say about whether coal is good or bad. Because I’m capping greenhouse gases, coal power plants, you know, natural gas, you name, whatever the plants were, whatever the industry was, they would have to retrofit their operations. That will cost money; they will pass that money on to consumers. ”
And only those corporations that invested in green technologies will make BILLIONS upon BILLIONS while the taxpayer pays with the little disposable income we have left. And government will be in control of manufacturing and a huge chunk of the economy. Green is the new communism.
PRESIDENT OBAMA: We can’t drive our SUVs and, you know, eat as much as we want and keep our homes on, you know, 72 degrees at all times whether we’re living in a desert or we’re living in the tundra and then just expect that every other country’s going to say, "Okay."
Global governance. Giving a council of countries say so over our own country and our behaviors. It is no other countries business what I drive or what my thremostat is set at.
PRESIDENT OBAMA: "We are five days away from fundamentally transforming the United States of America. "
Pretty transparent really. What part of that is confusing?
MICHELLE OBAMA: ’ Barack will never allow you to go back to your lives as usual. "
That’s what they think….
Nope, he is transparent alright, Americans just didn’t want to believe it.
Wake up people, he told you what he wanted to do. Now he is frantically hiding his agenda, buried deep within bills that he is shoving down our representatives throats.