Hit the ground running? How about just waking up!
The last democrat to be president hit the ground running the week after he won the election. President elect Clinton put the word out to corporate leaders that he wanted to meet with them and get their ideas for the economy. Clinton did not let the 1992 recession of his predecessor put the economy at the point of collapse. Clinton did not make excuses for doing nothing like saying we cannot have two presidents. Clinton was not caught catching a nap before he took office.
Since the President Elect Obama mocked Senator McCain for saying the economic American economic fundamentals were sound… the economy started its nosedive. The nosedive got worse as Obama and McCain proposed $750 billion bailout. Investors know that socialism and the inevitable nationalization of industry would destroy the value of equities like it is already doing to the big three auto industry. Socialism to most Americans implies first economic and then moral bankruptcy such as paying autoworkers not to work.
Last night James Cramer asked when President Elect Obama would start doing something other than trounce the economy? Cramer said the lame duck President and Congress can't do anything now so it is time for Obama to show he has some of the leadership skills of his predecessor Bill Clinton who actually did hit the ground running. Cramer indicated that a depression was possible if Obama continues to show no leadership. That means President Elect Obama is beginning to be perceived as the cause of the economic chaos during his campaign against the American economy with his negativism, his failure to show Clintonesque leadership, and Obama's willingness to allow fears of socialistic nationalism grow and destroy faith in the American free market system.
Destroying the American economy is now being perceived as the strategy used to discredit past free market policies and lead to the victory of Obama in the election. I don't think it is true but Obama is doing nothing to help the free market economy or to give any hope that he supports the reforms of even the Clinton administration.
Two days ago James Cramer of "Mad Money" spread fear saying the market could lose another 50%. Yesterday the markets dropped only 6% on in spite of high volume. Fear mongering by the media and the newly elected is being perceived as an attempt to create damage during the Bush administration so that the new administration looks better. But it is being done at the expense of all Americans and Americans will not forget this irresponsible behavior. It is time to stop trashing the economy and work for solutions. Nationalizing the automobile industry by giving them money for a stake in them will further undermine the American free market system. If President Elect Obama is not a socialist then he should show his cards now and ease market fears.
Yet yesterday showed that the American markets are ready to surge on any positive pretext. If Obama gives a positive pretext he will get the credit for the surge. If President Bush gives the pretext and the surge occurs in spite of Obama's negativism then Obama will take office when the market has nowhere to go and history will see Obama's methods to be contrary to the best interests of Americans. Yesterday the investors fought off a high volume of short selling and the market failed to collapse into disorder. That means the market is poised now to recover with a record advance on record volume. But it needs a good pretext.
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