Market forces
The rally that followed Obama's revelation last week that his economic policies would no longer be suicidal has begun to subside. The world was greatly relieved that Obama was not about to blow out the brains of American free market capitalism by driving stock prices to zero. That would have left the world without the only engine of innovation and creativity that pushes the world forward by making older products and entrenched labor forces obsolete and expendable. Only socialists and other demigods think they should be irreplaceable.
But now the world is beginning to see that Obama intends to strangle the US economy instead. Obama will double the current US debt of $30,000 per US citizen and then double US taxes to pay for it. Although U.S. President Barack Obama has urged other countries to increase their spending to boost growth, European officials have once again indicated that they have no intention of having their economies climbing the gallows and hanging themselves as Obama is doing in the U.S. According to ING, emerging-market-borrowing costs will increase to near record highs this year as governments and companies seek to make $760 billion of debt repayments and global defaults rise.
The dollar is marginally higher and the yen is rising in Europe Wednesday as currency markets continue to adjust to hopes of a U.S. economic recovery before Obama can wreck too much damage on the world economy with his economic poisons he calls his American health plan. His medicines seem designed to kill the patient.
Yesterday Geithner told Congress he needs the power not just to coerce banks but to move in and nationalize them.
Market Outlook
U.S. stocks on Tuesday handed back sectors from Monday's 7% rally, with financials leading the retreat just after Jim Cramer of MSNBC announced it was now the right sector to buy. The Dow Jones Industrial Average fell 115 points, the NASDAQ Composite lost 39 points and the S&P 500 slipped 16 points. The market is left searching for which peg leg of the market rally to lead the next advance.
Asian shares were mixed last night with Shanghai down 2.1%, India up 2.1%, Japan up 0.1% and Hong Kong down 2.1%.
European markets are generally down in the range of down 0.7% to 1.3% mid way through their day.
S&P 500 futures unchanged, and NASDAQ 100 futures added 1.5 points, and the Dow industrial futures rose 33 points. All the US futures are slipping at the present moment. The delirium that resulted from hearing words of economic hope coming from the lips of Obama is fading as his heavy-handed socialist agenda continues. Congress must oppose Obama's national suicidal tendencies or they will be looking for work in two years after the next Congress is elected.
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