In an article on RealClearMarkets.com, the authors state the market is shorting President Obama’s stimulus package. The market is not excited about the President’s stimulus package, the market wants the skeletons in the closet exposed for what they are and then dealt with. Not propped up and bailed out.
Yet, from Nov. 4, 2008 through Feb. 12, 2009, the DJI overall fell 18%…
In January, when the Obama plan, promising far greater deficits than the two much smaller “emergency stimulus” plans signed by Pres. George W. Bush in 2008, was unveiled, the market tanked – the worst January performance in 113 years.
More pointedly, key political victories for the Team Obama spending plan have not been viewed as buying opportunities on Wall Street. A string of negative market reactions began with the December 18 announcement of a stimulus bill of $700 billion (Dow down 2.5%), continued with the January 7 announcement that the actual plan would be “on the high side” (-2.7%) and continued with last week’s 61-36 Senate vote supporting the Administration’s fiscal plan. The White House victory and the new bank bail-out plan announced the following day by Treasury Secretary Geithner were met with a 5% wipe-out in the DJI, and a decline in Treasury bond yields, indicating a “flight to quality.”
Listen I want President Obama to succeed. I pray that he succeeds because our country needs him to.
When President Bush left office the deficit was at $800 billion with a projected 2009 deficit at $482 billion. Now we have added $1.2 trillion more to this debt with a stroke of the pen and the market is tanking because of it. Will we get below 5,000 points in the market, probably. How long will it take to recover? A long time, but I pray that somehow this stimulus package works, cause we need it to
A Conservative Techie 