Even Jim Cramer proclaimed on Mad Money that every sector is fair game for this administration's red tape; banking, coal, oil & gas, healthcare, transportation, hotels, entertainment/casinos, alcohol & tobacco, and every company pretty much that makes a profit. Profit has suddenly become a four word! The elitist jerks who have money in the stock market or a job on Wall Street... how dare they profit & support capitalism?
This change cabinet refuses to reward success at a time of ECONOMIC EMERGENCY, choosing instead to reward laziness and failure. Rewarding failure will never raise a capitalistic society out of an economic spiral, Mr. President. On the contrary, only through massive tax cuts will corporations be able to increase cash flows, net margins, and most importantly increase hiring/payroll. Without increasing employment, it won't matter if the combined S/P earns $40 or $70 in '09, since valuations (p/e's) only stabilize when consumer sentiment is high and said consumer is gainfully employed. And that's not some mediocre government type job that is prevalent in western European societies Mr. President, where they drive 2 cylinder cars and/or walk everywhere. Is this the type of system/society this change drum is beating? Europeans envy the lifestyles of Americans. We urge our elected officials to stop the kowtowing and focus on the American businessman's spirit, because it's the steadfast American spirit that will be KEY to bringing us out of this paradoxical nightmare.
The policies of change dear Sir Mr. President Obama are undermining dreams for every patriotic entrepreneur and venture capitalist, while rewarding the weakened mass of losers that, regardless of predicaments and economic cycles, choose to drag, procreate, and collect welfare checks. Benefits for these people actually increased in your stimulus bill! Does that make sense in what is a Darwinian system? POTC is not surprised though, as you went from Harvard to precinct captain for the most crooked Mayor in the history of the world, "the Daley Machine" in Chicago.
Ironically less than two months into your term, your credibility conundrum has started to unfold as unemployment shot up to 8.1%. Peter Orszag stated that the Obama spending budget/buffet was based on unemployment peaking at 8.1% for 2009! Word to this economic team: your forecasts for peak unemployment has been met while the stock market plunges. Any response?
We expect the administration will publicly admit their financial forecasts were too rosy and wrong, as the campaign mantra was greater accountability and transparency. We trust those principles are still important to you just two months after your triumph.
We blogged in January about the creation of more government type jobs, and Friday's numbers began to reveal this unfortunate smoothing development. Even though the market is technically oversold, we believe the underlying fundamentals related to banks/credit, residential real estate, commercial real estate and insurers trumps all. The psyche of investors and traders has now been broken with Dow and S/P trading at 6 handles. Although we will never count out the American entrepreneur over the long-run, there are now clear reasons to be concerned in the short-run.
The Psychology of the Call team prefers to witness weak companies go under and new ones emerge, regardless of so-called systematic risks. Maybe these so-called systematic risks pose a greater risk to the two party system than we now understand. This is a topic that will be fiercely debated as the patriotic types like Rush Limbaugh realize that a third party takeover is guaranteed in three short years, regardless of how right and loud their elephant voices reverberate. Even so...
Americans have had much worse odds against them in the past and synthetically propping up corporations like Shakespearian puppets is Un-American to the core. We stand for less government involvement and urge government officials to stop the public charades, step aside and focus on protecting the country, dammit! Stymieing our free market system will guarantee you a one-term failed legacy. We want anti-capitalistic ideas to fail, and we fully understand and support the rising tide of voices against this 'regulate capitalism cabinet'. The 1st amendment seems to be the only saving grace we can hang our country hats on during these botched times. Please vote in our poll in the left margin.