For once--and I think once is about the extent of this rare event occurring--Barack "World" Obama is right, and Rush Limbaugh, Mark Levin, Sean Hannity, and the rest of conservative talk radio are wrong.
President Obama says that the stock market gyrates up and down (I would add: without discernible reason other that computer. momentum gaming--at least often, in recent times). The stock market actually made an irrational rise right before Obama was elected--an irrational recent month high that would again be irrationally reached, or almost reached, in early January. This log called every one of these irrational moves (300, 500, or even 1000 points in a single day) when they happened--in foresight rather than hindsight. Exactly what economic development was Wall Street "predicting" (lol) when stock traders drove up the stock market form October lows to election day; then drove the market down to a temporary low (until now) on November 20; and then drove the market straigt up again to that recent high again in early January?
Nope. President Obama is right, and Rush Limbaugh, Mark Levin, Sean Hannity et. al. are wrong. A President has no business basing his policies on Wall Street. The problem has been that we HAVE been basing our policies on what Wall Street people are advising (including the policies of both paulson and Geitner, who seem to be letting Goldman Sachs run the country, as is Bernanke). I have been saying that our problem is that we are listening too much to the newly minted economic fascists/Communists on Wall Street, and not that we are paying too little attention to them.
You doubt me? Don't do that--even if you are Rush Limbaugh!!!! I can prove that what Wall Street "thinks" has absolutely NOTHING to do with what the economy will actually do. In Octover of 2007 the Dow reached an ALL TIME high (in gross numbers) of 14,000 or so. The stock market is supposed to "predict"/forecast what the economy will do a year out (lol again). What happened in October of 2008? Right. We got Armageddon, as Bernanke and Paulson panicked--along with every politician around.
Q.E.D. Can you be any more wrong than Wall Street was in October of 2007? Nope. It is not possible, except, perhaps, if you were alive in 1929. It is simply a total myth that Wall Street accurately "predicts" the economy. Especially since the advent of computer's, and the dominance of "technical analysis", Wall Street hardly "predicts" an hour into the future--much less a year. Wall Street now acts on present hype as to the future (rather than either present or future reality), rather than accurate foresight of future economic conditions. I think you can fairly say that Wall Street traders are presently unable to hype Obama's economic program convincingly. Well, I don't believe in Obama's economic program either, but having the hype, computer gaiming people on Wall Street--the Stupidest People on Earth--on my side in this gives me no comfort.
Let me go further. Say Wall Street becomes "convinced" by Obama, and makes one of those irrational leaps into the stratosphere. Will Rush Limbaugh, Sean Hannity, Mark Levin, e. a. then suddenly say that Obama's policies are right? If you think that, I still have a supply of Brooklyn Bridges in my inventory to sell to fools. So if you ask yourself if Limbaugh, Hannity, Levin, et. al. are really this dumb, you have to ask yourself about their motivation. They want to tear down Obama. The stock market (especially with that irrational rise right before Obama's election) is an "easy" club to use on Obama. However, it is a dangerous one. What are Limbaugh and the rest going to do if the stock market does make that big, irrational jump? Believe it or not, the stock market is likely to go up somtime in the next 4 years, even though I believe Obama's policies will cause it to collapse again (as the economy collapses again). So I do think this is a dumb move by Limbaugh, et. al., even if it is merely a tactical move.
P.S. Why am I so much smarter than Limbaugh, et. al. on the stock market? It is because I pretty much understand the stock market. They do not. I have been a stock market investor, picking my own stocks, since 1975 (and active in talking to my mother about it basically all of my life). I used to even be good at it, until I seem to have gotten out of step with the modern world a little. But I am not so out of step that I fail to understander the stock market. I just can't make myself trade in the modern style, where a week is "long term". As this blog has proven (see the archives since October), I am more capable than Limbaugh ever thought of being of analyzing what the stock market (as a whole) is doing, and why it is doing it.