The Obama Bear Market

Here is an interesting story...

A new Bloomberg review shows that the stock market has fallen faster under President Obama than under any president in the last century.  Bloomberg reports that since Inauguration Day, the Dow has fallen 20 percent, leading investors to dub this the "Obama Bear Market."  The Dow has also dropped 31 percent cince Election Day.

Despite a string of government bailout offers (or because of them) and Obama's "advice" earlier this week that Americans should be buying stock while shares are low, the Dow has continued to freefall.  

Obama, according to the report is "at risk" of breaking a historical tread in which the Dow soars an average of close to 10 percent in the first year after a Democrat wins the presidency. 

I'd say "at risk" is an understatement.

....And remind me not to take investment advice from Illinois politicians.

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The Stock Market Comments on Obama's Policies

President Obama equated his initiatives in health care, energy, and education to the creation of the railroad and interstate highway systems and putting a man on the moon. But these temporary transportation and technology initiatives created a platform for tremendous growth in the private sector. 

What he is proposing now is much different. He wants to create tens of millions of jobs that would have to be funded in perpetuity by tax dollars — taxing the very people who we need to create the next generation of economic growth. Forming millions of taxpayer-funded jobs is a very different vision for America than creating a climate that rewards and encourages private-sector initiative. 

This will take our economy in a very different direction — toward one in which the government plays the central role. It is no wonder that the stock market has lost half its value in just a few months and continues to plummet today.

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UAW Bailout

General Motors and Chrysler will pick up the second installment of their federal loans today, even as theTreasury Department begins to review the two automakers' restructuring plans, also to be submitted today. The plans are supposed to outline how they intend to again become viable and repay the government loans.

The stock market has already taken a plunge, betting that this bailout money won't really help.

As I've stated before, the Big Three Bailouts are really bailouts of the Auto Workers Unions more than the companies.  If the companies were allowed to go into bankruptcy, they could REALLY restructure the way they do things and have a chance to succeed.  As it is, it's only a matter of time before they come back with their hands out for more.

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