Market drops again as the Federal Government Grows more Socialist

The problem with the economy today is that the government is to heavily involved.

This is not an Anti-Democrat concept, it is an anti-big central government, reduction of capitalism and personnel liberty issue.

Bush was a failure when it comes to financial policies his entire 2 terms as I stated previously: Why republicans lost in 2006 and 2008 and George W Bush, The 1st American Socialist President.

Here is a very timely editorial at IDB, Is It Any Wonder The Market Continues To Sink?.

Last Oct. 13, in trying to explain why the market had sold off 30% in six weeks, we acknowledged that the freeze-up of the financial system was a big concern. But we cited three other factors as well:

• The imminent election of “the most anti-capitalist politician ever nominated by a major party.”

• The possibility of “a filibuster-proof Congress led by politicians who are almost as liberal.”

• A “media establishment dedicated to the implementation of a liberal agenda, and the smothering of dissent wherever it arises.”

No wonder, we said then, that panic had set in.

Today, as the market continues to sell off and we plumb 12-year lows, we wish we had a different explanation.
…….

Someone needs to stop saying that everything is a crisis and then go off with a little information and make bad decisions. I want a president who will make rational decisions in times of crisis and not appear overwhelmed. Americans are in deep trouble as spending continues to dramatically outpace any economic growth.

Money managers can see this, you can’t spend trillions of dollars more than exist and expect everything to be OK in the long run.

Today’s drop I think is directly related to the comments about cutting the deficit in half by 2013 that came out today. The market looks at this and says why does the progress on deficit reduction always occur after the current president is no longer on office or at the beginning of the second term. The press announcements are wrong and shows how stupid the present administration and media thinks Americans are.

By the president’s account, the administration inherited a $1.3 trillion deficit for the current fiscal year from the Bush administration – that’s the figure Obama says he’ll cut in half – and the stimulus law, coupled with rescue efforts for ailing automakers, the financial industry and beleaguered homeowners will raise this year’s red ink to $1.5 trillion.

He is saying that it is going to take 4 years to get to a $650 billion dollar debt. If that is a linear decrease for the annual debt, the total debt will be increase by [1.3 Tril – 1/4 650 bil + 1.3-1/2 of 650bil +1.3 trill – 3/4 of $650 billion + 650 billion] = (1.13 Tril + 0.975 Tril + 0.813 tril + 0.650 Tril)= $3.65 trillion more will be added to the national debt during the Obama Administration. That is adding >33% of the current national debt after 232 years. Just think of that America is going to be 35.6% more in debt in 2013 than when George W Bush left office. This is why the financial geniuses on Wall street are saying business will not have profits or anything of value in the foreseeable future.

Oh for the days of the responsible Bush administration financial policies, those where the days of efficient, inexpensive federal government (sarcasm intended) when the debt only went up by $1.54 trillion dollars in 6 years. Obama will have that passed before the mid-term elections in 2010. Wow, that is change which will result in everyone being prosperous.