Obama and the Investor Class: more on the Great Coincidence

July 29, 2009

Obama agenda falters, stock market rallies. I like to call this the Great Coincidence since, of course, the Investor Class would have no problem during a recession with higher income, investment, corporate, healthcare and energy taxes plus more regulation and intervention into the private sector. But wait! This article from The Hill makes the case that there might be something real to the GC after all (bold is mine):

The Democratic agenda in Washington has gone off the rails just as markets are enjoying their best run of the Obama presidency, and there’s a school of thought on Wall Street that it’s no coincidence. … “In general, I do think it’s positive it’s slowing down in Washington,” Merk said. Brian Gardner, an analyst with Keefe, Bruyette & Woods, explains that when markets cratered in March, investors worried the Obama administration would nationalize the country’s banks, impose punitive rules on credit card issuers and allow judges to lower the principal and interest payments on mortgages … Since then, the bankruptcy bill has fizzled and nationalization talk has died out. President Barack Obama did sign a credit card bill into law, but its provisions were much weaker than the industry feared. … “It’s very much a factor in what’s driving the market over the last couple weeks,” Gardner said of the slowed agenda in Washington. … The rally also creates some opportunities for Obama, as millions of voters start to feel more optimistic about their 401(k)s. Gardner said this should provide some grounds for Obama’s administration to argue it saved the economy from utter collapse.

Me: A rising net worth is something tangible Team Obama can point to even as the jobless rate remains high.

5 comments

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Health Care Reform is coming. It is imperative that we pass it as soon as possible for all the reasons explained by President Obama. The only country without universal health insurance in the developed world is going to join the rest of the group. We voted for change, we want change and we are going to move forward.
Eusebio

Our president is a leftist extremist. Now that we can see him for real, I’m happy I didn’t vote for him.

WHEN has SOCIALISM or COMMUNISM EVER IN THE HISTORY OF THE WORLD INCREASED FREEDOM ???

You leftist extremist idiots, on the coasts and in the inner cities, are my enemy.

Posted by Vin | Report as abusive

C’mon you guys..give Obama a chance to implement the change we can beleive in. We can have a great health care system just like Canada where you can wait 2 years to see a specialist. We can make 10% of the wealthiest population in America pay for 70% of the tab. Besides, they like the current recession and are comfortable making no money these days..so lets drive those investment capatilist completely out of the country.

We can all live in dire poverty, but hey friend, we’ll be healthe.

Cheers-change you can believe in!

Posted by Marky | Report as abusive

Socialism has failed and failed and failed with few exceptions. Sweden and Canada sort of make it work because of low population and high industrialization. But there are always those empty headed idealists that think they can make it work in America. They can’t but they do damage to the very fabic of our society when they are in a position to try. Our current slate of self-appointed socialist messiahs: Obama, Frank, Shumer, Pelosi and the ever present Kennedies.

Posted by nick chilton | Report as abusive

A prime near socialist example of disintegration inside out would be Norway. Flush with oil profits and a huge sovereign account – their unemployed and disabled on the public tab is skyrocketing as their overall GDP plummets.

Stupidity [or acting stupidly] rushes like water to the lowest level.

If the youngest amongst us aren’t willing to contribute, what trajectory do we have?

Posted by Hank Reardon | Report as abusive