Obama’s “Great Depression” punishes investors as Dow continues to slump

Market Outlook

Asian stocks were down last night with Shanghai down 3.4%, Japan down 1.2 %, India down about 2 %, and Hong Kong was down about 4.8%. Japan is now down to where it was in 1982.

European markets are down in the range of 1.2% to 1.7% at this time.

American market futures are currently down about 1.5% two hours before the market opens.


President Barack Obama now has the distinction of creating his own personal bear market. A bear market is defined as a decline of 20 percent or more. The Dow average has dropped 31 percent since Obama’s election. The Dow average took eight months to decline 20 percent following the inauguration of George W. Bush, reaching the level on Sept. 20, 2001, nine days after terrorists attacked the World Trade Center in New York and the Pentagon in Washington.

The Dow Jones Industrial Average fell 20 percent alone since Inauguration Day, the fastest drop Bloomberg found for any new president in at least 90 years. The Dow has lost 53 percent from its October 2007 record of 14,164. Most of the drop is from when Obama got the media proclaiming America was in a Great Depression so that Americans would lose hope and Obama could claim he would bring hope if he was elected. Obama's negativism toward productive hard working people and his general economic and historical ignorance is creating the "Great Depression" he predicted.

Obama has shown he does not have a clue much less give us hope. Putting unemployed to work in government jobs is like putting people to work sweeping streets. It does nothing but destroy the wealth of the private sector that has to pay the the salaries of millions of government workers who only consume and do nothing for national productivity. Building high cost/maintenance windmills puts a handicap on the grid when nuclear power is the only source of energy that can meet world needs. The proven way for ending a recession is to stimulate the private sector. The proven way to create a depression is to do what FDR did and tax the private sector to pay for government busy work programs.

More than $1.6 trillion has been erased from U.S. equities since Obama took office Jan. 20 breaking the pattern in which the Dow rallied over 5 percent on average in the 12 months after a Democrat captured the White House, according to Bloomberg. People thought there would be a brief Obama rally but we got carnage and a lack of confidence in the measures that Obama announced.