Posted on 07/26/2014 8:29:09 AM PDT by Kaslin
I received a note the other day from a social Democrat, who wrote:
“When Obama came to power the Dow Jones Industrial Average was 7,900, today it is over 17,000.
When he came to power, the Federal Budget deficit was 11% of gross domestic product (GDP), today it is 2.8%.
When he came to power, the economy was in a free fall and losing 8 million jobs, today it is growing and all the lost jobs have been recovered.
We are poised today to become the greatest energy producer in the world and North America will produce more oil and gas than the entire Middle East. Pennsylvania alone by next year will produce more gas than Qatar. It is estimated that the economy will grow 3.5-4% next year fueled in great part by the energy boom.
Inflation is low, interest rates are low, credit is becoming plentiful. Tourism has broken all records. What is it that makes you dislike him so much?”
It’s a good question. We must not let partisan politics interfere with our view of the economy.
Certainly, under Obama, the stock market has done well. In fact, when Democrats have been in the Oval Office, Wall Street tends to do better.
But that’s a superficial analysis. This time the recovery on Wall Street is due more to the Federal Reserve’s easy-money policies than the Executive Office of the President’s fiscal policies or leadership.
The energy boom in the United States has little to do with the Obama Administration. In fact, the White House has been trying to thwart the fracking-technology boom through Environmental Protection Agency (EPA) regulations, etc.
Certainly, fiscal policy has improved lately, with the budget deficit falling to under $400 billion this year. But that’s due to gridlock and the Republicans controlling the House more than responsible spending by the President.
Yes, the official unemployment rate has declined under Obama, but that’s largely because more adults and teenagers are dropping out of the labor force. The labor participation rate is at a 30-year low.
Moreover, ObamaCare has caused a huge increase in part-time work. ObamaCare mandates that employers provide health insurance for those working 30 hours a week or more. Consequently, employers are hiring more part-time workers who therefore earn less money than when they worked more hours.
In short, I’d say that the stock market has done well despite Obama and the Democrats.
You Blew it! Is Michael Moore a Hypocrite?
Like Al Gore, Paul Krugman and other critics of free-market capitalism, Michael Moore profits handsomely on the system he attacks. Moore is famous for taking the working man’s side in various documentaries criticizing corporate CEOs and big business. Those films include “Roger and Me” (about GM) and “Capitalism, a Love Story.”
In a recent divorce settlement, it was learned that Moore has a 10,000 square-foot house in the same neighborhood as Madonna and Bruce Willis. Moore owns multiple homes (nine) around the country. And he is reportedly worth more than $50 million.
On CNN in 2012, Moore vehemently denied he was a rich man. Pierce Morgan asked him point blank:
“I need you to sit here and say ‘I’m in the 1 percent.’” stated Morgan.
“Of course I’m not, how can I be in the 1 percent?” responded Moore.
“Because you’re worth millions.”
Moore can no longer be in denial.
To be fair, I have nothing against people making lots of money, even in criticizing the system. But if you are going to be a critic, you might have a better case if you live a low-profile lifestyle and give most of your money away to causes you support. I admire people like Warren Buffett, who still lives in a modest middle-class house in Omaha, and the late Sam Walton, who drove an old pick-up truck around Arkansas.
But one thing you can say about Michael Moore: He still dresses and looks like a poor slob. He would fit right into the classic TV series, “The Beverly Hillbillies.”
The US dollar is still a refuge for people in other countries. Not everyone with some wealth buys gold.
The US economy is still seen as safer than the dictates of the Chinese or Russian governments or the EU. Third World governments’ economy dictates don’t even need to be mentioned.
The market and underlying fundamentals would be much, MUCH greater without Obama regularly damaging them and discouraging investors.
A trend based on two points is often about the two points selected. Yes, the economy was doing badly when Obama came to office. That was two years after the Democrats had taken control of Congress. It took them two years to crash the economy. Two years before that, with a Republican Congress and George Bush as President, the economy was doing very well.
A better comparison would be between 2006 (Republican Congress, Republican President) and 2010 (Democrat President, Democrat Congress).
So it's risen in almost direct proportion to the cost of a gallon of gasoline, a pound of bacon and my monthly health insurance bill.
That's called inflation. And to anyone with even a passing familiarity with the real world, it's a bad thing.
If it was not for the fed pumping billions into equity’s and then making the bonds too cheap to make a profit on the yield so they moved into equities as well.
The market would a over a thousand points lower.
When the fed has to pull back in a bigger hurry because they are inflating the economy, you will see the carnage.
” How we don’t have hyper inflation right now is beyond my (non-economics education) capabilities to fathom.”
They are saying that it’s excess capacity, but that capacity is gradually drying up as plants downsize to make better profits.
Sooner or later the excess money will spill into the pipeline and create that inflation.
Right now it’s piling up at the banks so that they can meet Dodd Frank rules. They will have to unload the excess if the fed does not pull it back...eventually.
But you are right, it’s the craziest stuff I have ever seen or contemplated. And it’s just not happening yet. It’s a bubble or maybe a few of them waiting for a catalyst to pop them.
Forgot to mention the fake federal numbers as well..
he actually has...obama’s regulatory strangulation has made hiring new employees as unattractive as it gets...yet even with less employees corporations are still making as much revenues as previous years...same revenues - less employees = more profits = higher stock prices!!!
When Obama took over the stock market crashed (before and after he took office). Thus it started rebounding. It is not that much higher than 2008 it only looks better compared to the trough of the crash. The only reason it has rebounded is money has nowhere else to go with near zero interest rates pushed by the fed. The market held on with a modest rebound in spite of Obama. Had there been conservative economic policies and growth the market would be much higher now IMO.
0bama cut the dollar in half by printing $1trillion his second month in office
$14,000 in 0bama dollars == $7,000 in GWBush dollars
Bingo. In addition, stocks have been the only investment vehicle that has somewhat kept up with inflation. Cash - worth less. Real estate - worth less. Money in the Bank - earns way less than inflation - and with an expanding money supply is worth less. Ironically, the people Obama says he's trying to help don't generally invest in the Stock market - so even by his own stated hypocritical criteria he is failing.
Also, when you are looking at employment numbers, you have to look at the number of people of employment age and calculate the percentages. IF we have an increase in the absolute number of people working - it is probably driven by 1) an increase in work-age population, 2) people working longer because they can't afford retirement, and 3) people working in lower paying jobs. If that's what counts as success, then we might as well just choose our next President from a kennel.
“people working longer because they can’t afford retirement,”
I’ve seen a couple of bag “boys” lately who appeared to be in their late 80’s or early 90’s. One literally teetered when he walked. These people aren’t working because the want to.
The only reason the market has gone up is because of the money being pumped in it by the government. It is the largest bubble in history and when it bust’s it is going to be something to be seen. It’s to the point now that nothing can be done to prevent it. But no worry the fric can always blame it on Bush.
Actually, I think Obama has been good for the economy. Wall Street funds both candidates anyway to cover their rear ends and it works.
Michael Moore is, of course an idiot
Energy boom under Obama? Gas is twice the price since Bush left office. Food prices have doubled.
Wall street is for the rich and the poor who can ride out the 401k fluctuations.
“Printing monopoly money has kept the stock market going. Such sneakiness leads to the hidden tax of inflation over time.”
Exactly right. Known as QE1, QE2, QE3 and so on.
Yes. He has the printing presses making millions of $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ every day. The market may be up, but the worth of the dollar is way down.
“Actually, I think Obama has been good for the economy. Wall Street funds both candidates anyway to cover their rear ends and it works.”
You’re on the wrong forum noob. July 26 2014
Agree. Obama is adulterated Evil, and he’s doing his worst to destroy America. Many Wall Street firms are run by Obama’s buddies who only care about the DJIA, NASDAQ, and S&P indices, and how fat are their bank accounts.
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