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Like it or Not this is Obama’s Market

Posted by rightwinger on November 27, 2008

The stock market has overall gone down since it was announced that Obama was elected president.   Its slightly gone up since he started announcing his economic team.   The problem is that some of them are wrapped up in this Fannie Mae bailout debacle. Lastly appointing Paul Volcker the Fed Reserve Chief appointed by President Carter is all wrong.  Talk about setting us up for high inflation and interest rates – Paul Volcker is the man.

While stocks staged a relief rally leading up to the presidential election, U.S. share indices have mostly been down ever since. Major media accounts would suggest that weak markets have revealed themselves thanks to economic indicators pointing to an unfortunate economic outlook.

The above is an easy explanation, but it’s also a faulty one. If we ignore how inaccurate are the measures of economic health calculated by the federal government, it should also be said that they’re frequently backward looking, and as such, they’re often priced by investors well ahead of their release.

So instead of pricing in the present, stock markets are most useful for offering a snapshot of what things will look like in the future. Treasury Secretary Hank Paulson surely isn’t helping the Obama market with his disastrous imposition of TARP, but then it should also be said that Barack Obama is not helping himself.

It was surely gracious of our president-elect to acknowledge that there’s only one president at a time, but the problem there is that his relative quietude until recently has allowed the media to somewhat define what an Obama economic program will look like. Judging by the overall decline in share prices since, investors aren’t impressed.

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One Response to “Like it or Not this is Obama’s Market”

  1. Cool B said

    Nice observation… I have bookmarked this on

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