Tuesday, January 20, 2009

Barack Obama's New First

U.S. Stocks Slide in Dow Average’s Worst Inauguration Day Drop

Apparently Wall Street didn't get the message that Hope and Change had now taken the "oaf" of office. While BO isn't the first President who come into office with a poor economy, it has to be shocking for the new President and his team to see stocks plummet so much. Not a vote of confidence by any means. The biggest part of the drop, and I mean 200 points of it, came after his speech. Which isn't surprising because his speech was nothing spectacular. What was noteworthy was the promise of more government hand outs. That will not encourage growth.

1 comment:

Hardtack said...

What scares me is where the money is coming from for the bail out. I can only come up with two answers.

The first is to raise taxes. However, we are soon reaching a point (if we are not there already) that an increase in taxes will not pay for all the programs.

The second is to print more money. That was the answer in the 1920's for Germany, and a more current country is Zimbabwe. This policy will lead to hyper inflation.

However, one needs to ask, in what direction is the Democratic Party wanting to lead America? Is it to more freedom and liberty for all, or is it to another outcome, one that the founding fathers (and all freedom loving people) would not recognize?