"World stocks sag on concerns about Obama plans"
"The raft of grim corporate news in Europe comes as the markets have largely given the thumbs-down to the passing of a $789 billion stimulus bill in Congress and U.S. Treasury Secretary Tim Geithner's bank rescue plan, which could cost up to $2 trillion. On the Geithner plan, investors worried about the lack of detail, specifically the absence of any indications about how the banks' toxic assets would be bought."
My Way News - World stocks sag on concerns about Obama plans

Hello George:

The effected markets aren't the ones we see. In any case, this short term reaction means that the investor class doesn't like the plan. But, we already knew that.

I do agree, though. Since this is HIS fix, he owns it. If it fails, he's toast.

What's important are the results on the ground as measured by unemployment. This IS a jobs bill, after all, and several MILLION jobs are promised. It takes about 18 months for things like this to work their way through the economy. But, if there isn't significant improvement by the 2010 election, you guys are going to romp.

excon

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Originally Posted by excon

But, if there isn't significant improvement by the 2010 election, you guys are gonna romp.

excon

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Yup. I said all along that this election was better off lost than won. There's no short term fix to this mess.

Congressional Democrats and the Obama administration plan to present a two-part argument on the economy.

First,no matter how bad it gets, they'll argue that it would have been worse if not for the "emergency" action they undertook.

Second ,it's all the Republicans' fault anyway and they were left such a bad mess that there was really no quick fix .

Yeah Obama said in Ft Meyers this week that if it didn't work we'd get another President. But work or not he'll argue he needs more time .

"Stocks have fallen steadily over the past two weeks as investors lost confidence in multiple Obama administration programs aimed at bolstering the economy. The market's inability to rally signals that investors don't have a sense of when the recession, already 14 months old, will end." Worried Wall Street falls sharply at opening - Yahoo! News

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Originally Posted by George_1950

Stocks have fallen steadily over the past two weeks as investors lost confidence in multiple Obama administration programs aimed at bolstering the economy.

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Hello again, George:

You say the investor lost confidence in the Obama plan. I say the investor never did have confidence in the Obama plan. I might even suggest that their ideas, which made them RICH, played a big part in the meltdown that caused the need for a fix in the first place.

For the most part, these are free market enthusiasts, who don't believe in government regulations.

In fact, one could say that the drop in the stock market indicates that the fix IS working. Indeed, there are STILL big unrealized losses in the economy. The game of hot potato is still raging in Washington. I don't know if the losses are going to be born by the banks, the homeowners, or Wall Street.

Until the low is reached in either home values, bank values or stock values, the recession isn't going to quit.

Buy gold.

excon

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Originally Posted by excon

...
Until the low is reached in either home values, bank values or stock values, the recession isn't going to quit....

excon

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I agree with reaching the low; so, what's up with the Obamacrats? Larry Kudlow says, "President Obama’s massive mortgage-bailout plan is nothing more than a thinly disguised entitlement program that redistributes income from the responsible 92 percent of home-owning mortgage holders who pay their bills on time to the irresponsible defaulters who bought more than they could ever afford. This is Obama’s spread-the-wealth program in action.

"Team Obama is rewarding bad behavior. It is enlarging moral hazard. It is expanding its welfarist approach to economic policy. And with a huge expansion of government-owned zombie lenders Fannie Mae and Freddie Mac, Team Obama is taking a giant step toward nationalizing the mortgage market." Subsidize Bad Behavior? by Larry Kudlow on NRO Financial

don't worry investors ;Obama will not forget you . After all you are a key constituency .

In fact ;he plans to introduce the George Soros and other Hedge Fund owner's bailout plan .

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The Obama administration hopes to jump-start this crucial machinery by effectively subsidizing the profits of big private investment firms in the bond markets. The Treasury Department and the Federal Reserve plan to spend as much as $1 trillion to provide low-cost loans and guarantees to hedge funds and private equity firms that buy securities backed by consumer and business loans.

The program also does not try to change securitization practices that, many investors say, spread risks throughout the world and destroyed financial institutions. Policy makers acknowledge that for now, fixing credit ratings, reducing conflicts of interest and improving disclosure can wait.

Under the program, the Fed will lend to investors who acquire new securities backed by auto loans, credit card balances, student loans and small-business loans at rates ranging from roughly 1.5 percent to 3 percent.

Depending on the type of security they are borrowing against, investors will be able to borrow 84 percent to 95 percent of the face value of the bonds. Investors would not be liable for any losses beyond the 5 percent to 16 percent equity that they retain in the investment.

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http://www.nytimes.com/2009/02/20/bu...d.html?_r=1&hp

Wall Street Showered Money on the Obama campaign . The bill is coming due. Expect that Obama will do everything possible to pay back the favor. It's the Chicago way .
http://dealbook.blogs.nytimes.com/20...e-fund-factor/

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Originally Posted by George_1950

I agree with reaching the low; so, what's up with the Obamacrats? Larry Kudlow says, "President Obama's massive mortgage-bailout plan is nothing more than a thinly disguised entitlement program that redistributes income from the responsible 92 percent of home-owning mortgage holders who pay their bills on time to the irresponsible defaulters who bought more than they could ever afford. This is Obama's spread-the-wealth program in action.

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Hello again, George:

Well, I'M not going to read the bill, so I can't refute it. I'm not surprised that we're on a big swing to the left. We just had a big swing to the right, and this is the result.

I certainly wouldn't put it past the Democrats for loading up on all their favorite programs, just like the right did when it could. Do I hear the righty's sniveling?? I do. Am I impressed? Nope.

excon

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Originally Posted by excon

... We just had a big swing to the right, and this is the result....

excon

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What part of the Community Reinvestment Act, Fannie Mae, and Freddie Mac, etc. was a swing to the right? All of this mess is a result of government interference in 'the market', which is the opposite of a swing to the right, as far as I understand it.

"So the Obama theory – government spending is stimulus. If so, financial markets should feel the love. The U.S. budget is awash in red ink, and $800 billion more of it should easily move the needle on our economic prospects. Indeed it has – in the wrong direction. Financial markets don't want more government debt or a scramble for “shovel-ready” spending projects. They want the skeletons in the banking sector's closet exposed and expunged." RealClearMarkets - Articles - The Market Is Shorting Obama's 'Stimulus'

"In President Barack Obama's Cabinet, there is a Nobel Prize winner, a former mayor and a veteran CIA agent. Surrounding him in the White House West Wing are a former four-star general, one of the nation's most eminent economists and a handful of this generation's most talented political operatives.

"This constellation of talent, however, has something of a black hole. There is virtually no one on Obama's team with outsized achievements or a high-profile reputation earned in the world of business."
The Obama Cabinet is a CEO black hole - Eamon Javers - Politico.com

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Originally Posted by George_1950

"So the Obama theory – government spending is stimulus. If so, financial markets should feel the love. The U.S. budget is awash in red ink, and $800 billion more of it should easily move the needle on our economic prospects. Indeed it has – in the wrong direction. Financial markets don't want more government debt or a scramble for “shovel-ready” spending projects. They want the skeletons in the banking sector's closet exposed and expunged." RealClearMarkets - Articles - The Market Is Shorting Obama's 'Stimulus'

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So I guess you think the way out of this is simply tax cuts? Tax cuts haven't been proven to create more jobs, and as for spending; a lot of that spending would be for foreign made products.

So it's either targeted Government spending or simply letting people spend the same amount in the form of tax cuts with no idea where they will spend it or if they will spend it.

I like the Government stimulus over the conservative mantra of the tax cuts only theory which they have brainwashed the right wingers into believing will be the magic bullet because Government is bad.

Since mostly the wealthy pay most of the taxes, then they would receive the most cuts. That doesn't translate into jobs, in this fearful economic climate it means moving your money offshore, or buying cheaper in China which they've been doing for years anyway.

At least the Stimulus package requires some buy American provisions which will result in American jobs; the things we are purchasing, roads, bridges require American labor too. If we simply had tax cuts most of that money would be spent on Chinese goods; remember your arguments with the very first stimulus checks, same goes for your tax cut only theory.

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