Free-Hand Thinking

Untethered Thoughts from the Mind of a Liberty Loving, God Fearing American

Market Gives Obama a Failing Grade

Posted by Bobby on March 7, 2009

If one were to Obama’s word on the matter and actually believe that the market and its gyrations are indeed “a tracking poll”, one would have to assume that Obama has failed considerably. The market is polling and Obama is consistently becoming less and less popular. Michael Boskin of the Wall Street Journal has a brilliant piece on exactly why Obama is “tracking” less and less favorably, but that is not the reason for my bringing it up. My commentary is not meant for the investors, it is for the oblivious Obama voter.

As an Obama-voter, if I were to ask you about the tanking market, the most likely response would be something moronically similar to the rubber-stamp, non sequitur response that as became popular during the campaign season: “What is good for Wall Street, isn’t necessarily good for Main Street.” This sycophant promoted talking point has been used as recently–and as high up–as Robert Gibbs, White House Press Secretary, in response to comments made by Peter Santelli on CNBC. He used the phrase “derivatives trader” but the point remains. The problem with the statement is it implies that the two are not interdependent. Whatever happens to Wall Street does not affect Main Street, and vise versa. This is, as with most statements out of this Orwellian administration, completely false.

Most of the money invested in the stock market is not from some day trader who making his living flipping stocks and selling oil futures, most of the money is in the form of main street’s pension plans and 401k’s. Company stocks that are falling–and ironically, these company’s are typically demons of the Democrats (oil companies)–are held by mutual funds which are the most common form of long term (retirement) investing. And these company’s share prices are falling daily.

“Doesn’t affect me. I don’t own stock.” Don’t think your out of the cannon fodder’s way yet. How many products created by corporations and publicly traded companies do you own? Do you rely on? Quite a few huh? What happens if Apple’s stock continues to fall? They might not have the money to invest in that new ipod or MacBook Pro. What happens if that pharmaceutical companies stock continues to fall? Might they lack the money to research and develop new medicines to treat new diseases?

Why are people so quick to loath corporations? They are responsible for 99% of the technological and medical advancements of the last century. What has the government done? Build roads? Why do we think they are able to do anything correctly? I’ll bet Wal-mart could build roads better and be more cost effective at it, but this is a topic for another day.

What happened to Obama’s pledge to look out for the little guy? Punishing Wall Street directly punishes the little guy. Of course, it is always this way. Taxing corporations doesn’t hurt the corporation. They simply pass that cost on to the consumer, aka. the little guy. Don’t believe me? Ask yourself: Where do these corporations get money to pay taxes?


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