Mar 02 2009

Obamanomics – This Is Going To Be A Rough Ride, DOW Sliding Again

Published by at 1:19 pm under All General Discussions


As many are saying this week, we do not wish Obama to fail – too many people will be permanently ruined financially if that were to pass. But while I do not wish for Obama to fail, he is going to fail and it is going to be a spectacularly horrific failure. Gateway Pundit has been displaying some humbling economic graphs of late, I hope GP doesn’t mind I use them to make my point (and echo GP’s). First off, we can track the economic down turn to Obama’s rise to power:

Today the DOW restarted its months’ long crash again, dropping well below 7000 and now hovering around 6800 as of noon eastern. America has now lost 50% of its market since Obama started his rise. If this was global warming there would be true consensus on the cause and effect of this financial disaster.

Much of this is because Obama and the dems have declared financial war against our free market economy. He wants to punish success, businesses, etc. The entire liberal economic plan is based on fiction. Obama’s budget naiveté is simply stunning, just look at his projections used to support the liberal budget:

It is an stunning display of foolishness. The first graph is the annual debt – with an enormous spike in the two coming years from the spendulus bill (which will not add a single new job for about 12+ months). The 2nd chart is the Kool Aid chart. It assumes revenues will dramatically rise, even though all the policies are anti-economic growth. This is were fantasy meets reality. 

If, as we will see over the next 4 years, the liberals screwed up there will be no jump in revenues. No jump in revenues will mean that deficit spike will stay at historic highs for every year out to oblivion (which economically will be when Obama is up for re-election at the rate the dems are spending).

If, as is really happening, the consumers tighten their wallets and slow spending, and investors stay on the sideline and banks hold back lending, then the economy will continue to lag. As consumers hold back, more jobs will be lost and the price of land will continue to shrink as demand drops off and supply ramps up. As the economy lags the revenues will crash and not cover the spending.

These graphs are all rose colored to the extreme. They were developed by people drunk on liberal Kool-Aid.

The liberal democrats have gone ‘all in‘ on their belief government spending can direct a free market. It is their ‘come to Jesus’ moment. If they are right (and sadly for America they are not) then these wishful fantasies are about to come true. But if they are wrong (and the DOW says they are wrong) then their revenues will drop and the deficits will balloon and the government will be seen (rightfully) as taking the money from a working economy and wasting it on liberal fantasies.

I will be posting the monthly unemployment numbers nationally and using a sampling of key states. I know what is coming, more months of deeper problems, while Washington throws our hard earned money down the drain on the political equivalent of a Ponzi Scheme . As we lose our investments and we lose jobs and we see Washington handing out money to their cronies, we will see how well unchecked socialism plays in a free market.

Most socialist models were imposed by revolution, so there was no way to compare. This is the first time in history socialism will be thrust into a working capitalistic system through political fiat – should make for some interesting fire works when it implodes.

Addendum: Is this the picture of a Modern Day Nero fiddling while the economy burns?

Since the presidency changed hands less than six weeks ago, a burst of entertaining has taken hold of the iconic, white-columned home of America’s head of state. Much of it comes on Wednesdays.

The stately East Room, where portraits of George and Martha Washington adorn the walls, was transformed into a concert hall as President Barack Obama presented Stevie Wonder with the nation’s highest award for pop music on Wednesday.

A week before that, the foot-stomping sounds of Sweet Honey in the Rock, a female a cappella group, filled the East Room for a Black History Month program first lady Michelle Obama held for nearly 200 sixth- and seventh-graders from around the city.

Cocktails were sipped during at least three such receptions to date, all held on Wednesdays.

Glad someone is having a good time, and all those tax dollars are being well spent. Party like its 1999!

Addendum: I failed to mention that the above charts neglect to take into account the retiring boomers, which are going to shrink our economy massively as they transition from workers to retirees, from driving the economy through production to a drag on the economy. And these people will be retiring a lot poorer, so their spending (now at their life time peaks) will drop off dramatically as well.

21 responses so far

21 Responses to “Obamanomics – This Is Going To Be A Rough Ride, DOW Sliding Again”

  1. VA Voter says:

    Aug 2007 was prescient. Congrats. You should have 401k matching. It’s free money.
    I was 2/3’s out by Sep 2008 but still lost more than I like before getting all out. Didn’t get the spreadsheets developed for timing this market until Dec 2008. It’s not perfect, nothing ever is, but it gives up very little on both the up and down turns. It’s still a lot more trading than I like if I follow every signal.
    YTD I’m down about 1.5%. The S&P is down over 20%.
    The S&P, and most equities, are at significant spreads below some moving averages. Your call on getting in is a reasonable speculation.
    This is no country for old men. The above treasury strategy is for the average investor.