11 Reasons Obama's Policies Are Sinking the Market, and Why It Matters to You!

There are different ways people vote. The obvious way is at a ballot box on Election Day. The other way people vote is with their wallet. Using the latter measure, Barack Obama is in BIG trouble. One only has to look at the rapid decline in the stock market since his election to know that, at least where money is concerned, there is a vote of no confidence. There will be bear market spikes over the next few months, but the long term trend is bleak. There is not enough money in the world, literally, to service and pay the debt Obama and the Congress are racking up. To quote Margaret Thatcher: “The trouble with socialism is that you eventually run out of other people’s money!” The assault on the American business community is in full force, and it effects everybody.

The stock market is telling us in no uncertain terms that Obama’s economic plan will not work. Why is the stock market important? Do you have a pension fund? Are you a member of STRS or PERS? Do you have an employer funded 401(K)? Do you own an annuity or an insurance policy or a mutual fund? Does your job rely directly or indirectly on discretionery spending? If you answer is yes to any of the above…you have a direct interest in the stock market. Why the vote of no confidence? Here are the answers:

1) You know that tax cut you are starting to see in your paychecks that averages about $13.00/ pay check? It isn’t a tax cut. The simply adjusted the withholding tables. You are either going to owe tax when you pay your taxes next year, or get less of a refund. It doesn’t add one penny to your pocket.

2) Obama’s budget calls for a curtailment of the mortgage interest deduction. Given that housing is part of our current problem,that is just boneheaded.

3) Obama’s budget calls for a curtailment of charitable deductions. The idiocy of that speaks for itself. Of course, if you believe government should be in control of some of those functions rather than private charities, then it pure idealogy.

4) Only 10% of the stimulus package goes to hard projects such as roads and buildings. A portion of it goes to rail transportation, but Harry Reid soaked that up with an earmark for a rapid rail line between Disneyland and Las Vegas.

5) Cramdown: this will allow bankruptcy judges to let someone pay $350,000.00 for the house they purchased for $500,000.00. The balance will be borne by taxpayers and shareholders of those evil banks….many of which are seniors who have had their dividend income upon which they depend to live wiped out these past few months. Would you loan anyone any money under those circumstances?

6) Our national debt will soon equal the total Gross Domestic Product of the entire world. The debt service over the next 10 years will minimally be a trillion dollars…if interest rates don’t go up. And interest rates will go up.

7) The government is sopping up so much money in borrowing, there will be little left for private business or homebuyers to borrow. The cost of money is going up….straight up.

8) Cap and Trade, the “carbon” tax, will drive up the cost of energy to American businesses and to American homeowners. Any benefit you get from any phony tax reduction will be more than offset by your utility costs. If you live in coal states, like we do in Ohio, hold onto your wallet. What is particularly discouraging is that China, the largest carbon polluter in the world, will not be subject to any “cap and trade,” and once again our shrinking industrial base will take a hit from which it will not be able to recover. That doesn't include Tim Geithner's plan to implement and excise tax on oil and gas drilled in the Gulf of Mexico. Is he kidding? No, and you will pay.

9) As interest rates rise, the dollar will strengthen. And we will be at an even greater competitive disadvantage than we currently are with other foreign countries.

10) The Obama administration has failed to address the primary problem holding back our economy…the credit freeze. While things are loosening up some, they have a long way to go. So far, the only thing we have gotten from Obama, Geithner and Larry Summers are patchwork measures that are akin to sticking gum in the holes of the dyke.

11) Obamanites don’t believe in trickle down economics. But you will learn as we get trickle up poverty. You can’t force people to go out and make money. You can only motivate them. When my neighbor is getting his home’s granite counter top paid for by my higher tax bill, how motivated do you think I will be?

If ever there was a blueprint on how to destroy an economy, this is it. A bad situation has now been made insurmountable. Depressing, isn’t it?