Saturday, March 7, 2009

Investors see hope slip away on U.S. missteps

Investors see hope slip away on U.S. missteps

"This really is a vote of no-confidence," said John Riley, president and chief investment officer of money management firm Cornerstone Investment Services in Dallas. "It really does show they're dropping the ball pretty badly."

Indeed, some of the market's worst stumbles of the past several weeks have come in moments when there had been high hopes that Mr. Obama and his economic team would deliver words and actions that would help clarify market uncertainty and restore some confidence.

On Feb. 10, the day new Treasury Secretary Tim Geithner unveiled a disappointingly fuzzy plan to bail out U.S. banks and their troubled mortgage assets, the S&P 500 plunged 4.9 per cent. When Mr. Obama unveiled his nearly $800-billion (U.S.) fiscal stimulus package on Feb. 17, the S&P 500 tumbled 4.6 per cent. And this week's market slide follows last week's unveiling of the administration's first budget, a monster $3.55-trillion plan that will create an unprecedented $1.75-trillion deficit.

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If you want to understand why the market is the true judge of Obama's economic success or failure, just read this article. His missteps, which include: ethical violations, tax corruption, finger pointing, petty politics, policy confusion, broken campaign promises, conflicting policy and international fummbles have eroded confidence in the people who actually pay attention to the policies, the budgets and econmics.

It means absolutely nothing that he still have a high approval rating... every Presedient has had a high approcval rating 2 months after they start. 

The real approval rating is the stock market and it has run for cover. 

This article sums it up best by saying: 

"You need something to restore confidence. At least show some leadership. That's all people want." 

2 comments:

  1. That article was the headline in Google Finance by the way.

    ReplyDelete
  2. But dude, Bush spent so much money in Iraq, therefore I love Obama.

    ReplyDelete