Tuesday, January 20, 2009

Socialist Presidential Rant at Inauguration = Market Meltdown

Please note - for future generations, because we are apparently doomed for the next few decades.

Smart Money: How to Get Your Finances Ready for the Obama Era
Skipping right to the end:
...Down the Road

It’s a safe bet that Obama’s energy advisers had a different read on the film An Inconvenient Truth than the folks close to former oilman George W. Bush. What’s more surprising: Even with gas prices dropping, the Obama team will likely get started this year on an extremely aggressive energy agenda. The decision to replace Rep. John Dingell, a Michigan Democrat loath to challenge Detroit, with environmentally minded Rep. Henry Waxman (D–Calif.) as head of the House Energy and Commerce Committee, means that body is likely to consider aggressive cap and trade legislation—which tries to lower greenhouse gas emissions by charging companies for the pollution they pump into the air—for the first time ever. Leaders have said they could pass that, and mandate wider use of renewable resources, by 2010.

A cap-and-trade program probably would hit consumers at the gas pump. It would also have fairly big consequences for manufacturing businesses. Gilbert Metcalf, a professor of economics at Tufts University, has calculated that if carbon credits cost $15 per ton, a typical rate, slight price increases would ripple through all kinds of products that take energy to produce—things like clothing and cleaning products. He estimates that the average household cost of living would increase by 1.5 to 1.9 percent, with costs at the higher end of that range in Midwestern states like Indiana, Ohio and Iowa, which are more dependent on high-polluting fuels like coal for electricity.

Whatever happens with this “carbon tax,” it seems likely that other tax increases—at least at the federal level—will be off the table for a while. Obama’s intention to “spread the wealth around” made for some fiery campaign exchanges; his full tax plan involved increasing capital gains, dividend and income taxes for families pulling in $250,000 or more per year, mostly by repealing cuts enacted under Bush

I took this segment out of context, because the article was extremely positive that Obama will make everything so much better. The only problem, investors see exactly these lines and react. Of course they didn't react to that article, barely anyone paid attention to it.

Everybody paid attention to Obama's words.

And gateway pundit got it right:
Worst. President. Ever... Markets Slide After Obama's Dirge
Nice job, Barack.
The president's socialist rant sunk the stock market today:

At this rate we'll be into 7,000 point territory by closing.

It's been nothing but a disaster since he took over.

Nice touch, "ever since he took over". I see gateway pundit is taking a cue from MSNBC's treatment of Bush - but it is understandably written in sarcasm and humor.

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