Read an interesting examination about how the stock market has reacted to Obama’s stimulus plan vs. how it reacted to Bush’s 2003 stimulus plan. The market predicts the future and recognized that Bush’s plan was pro-business and created to encourage investment, and it reacted positively. When it comes to the socialist Obama, the market is well aware that the current stimulus plan is not meant to stimulate the economy, but to destroy capitalism and build the Democrats base of power. The anticipation of high taxes, big spending, and intense regulation make it clear to the market that the Obama plan will not revive the economy.
From Biz Blogger:
Stock Market Analysis: Bush vs. Obama Stimulus Plans
“Now that 6 months have passed since Obama's ‘stimulus plan’ has passed, I thought it useful to examine the stock market reaction to Obama's plan and compare it to the reaction of President Bush's 2003 stimulus plan.
Bush's plan passed in April 2003 while Obama's passed in February 2009. I chose the S&P 500 Index starting point one month prior to passage because the market typically discounts the information beforehand as the bills work their way through Congress. I chose 6 months-post passage as the ending point because that's all the data we have for Obama's plan so far.
Bush: From March 2003 to October 2003, the S&P 500 went from 835 to 1034 or +23.8%.
Obama: From January 2009 through July 2009, the S&P went from 932 to 879 or -5.2%.
By way of comparison, I also reviewed the market returns a full year prior to these time periods and the results show a very similar situation.
The S&P 500 return under Bush 1-year prior was -26.2%, hurt by the internet bubble collapse, 9/11 and corporate scandals. Trillions of dollars in lost wealth.
The S&P 500 return under Obama 1-year prior was -35.9%, hurt by the housing bubble collapse. Also trillions of dollars in lost wealth.
Both presidents had very similar economic challenges, but the difference in market confidence inspired by the two stimulus plans couldn't be more stark. The market discounted that Bush's plans would return the economy to strong growth, while the market is discounting that Obama's plans will do nothing or even harm the economy's growth. I challenge people to offer an explanation other than what the market has already told us. It's time for Democrats to abandon their tax-and-spend approach and return to a plan that actually rebuilds individual wealth and business confidence.
Of course, Obama has a different view than the market - he says his plan is working great.”
Josh, a commenter at Biz Bogger said it best, “Why do we insist on calling Obama's plan an economic stimulus package. Clearly, it was never designed to stimulate the economy, but rather redistribute taxpayer dollars to Democratic constituents. It was merely called an ‘economic stimulus package’ to divert attention away from what it actually was and get it passed. Thankfully, since the Democrats called it an ‘economic stimulus package‘, it allows Republicans to compare the two even though it is really comparing apples to oranges. Your post demonstrates that Democrats know nothing about the economy, either that or they do and they want to destroy it.”
2 comments:
Well, limousine liberals and MSM "elites", you had your fun... and probably almost broke your arm patting yourself on the back after you got the Dear Leader elected.
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Now you are getting the taxes you deserve, as Barack Obama is going to BLEED YOU DRY. And you can forget writing off your local taxes on your overpriced eastcoast/leftcoast home… you’ll be paying more on that, too.
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And here’s the kicker: you’ll be sending alot of that money to people in red states… to people whom you can’t stand.
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New Yorkers, Californians, residents of the Northeast and the D.C. Corridor, you elected Obama… so step-up and pay those absurd taxes without complaining. You wanted bigger government.. so try THIS on for size.
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Those who live in places with more rational state tax structures will welcome you when you want to move there... well not really, LOL.
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So head-out first-thing Monday morning and jump in your Prius with the "Change" bumper-sticker on the back and GET TO WORK… Chairman O needs your money.
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http://reaganiterepublicanresistance.blogspot.com
liberals don't want to destroy the economy, its just that america is designed so that everyone can make their own wealth. whatever you put in, you get out. and you can't shortcut it by handing out money to "those that need it".
i have a friend, X, who as a kid lived a very unregulated lifestyle. parents let him curse at age 5, never reprimanded him for shooting BB's out of his bedroom window into moving cars at age 11, after graduating high school and taking 7 years in a 4 year program at college, his parents never pressed him to get a job, gave him money when he needed it, did not charge a rent for him to live with them, he rang up a 3,000 dollar credit card bill when we were 23 years old, in one month to no repercussions... my point is, my friend X, never learned any self reliance, he has no sense of responsibility, and no urgency to gain his own fortunes or find a direction in life. he's wandering around lost in society.
and now he's 'programmed' that mommy and daddy or someone else will cover all his problems. thats how the liberal party feels the federal government should be. unfortunately, 90% of the time, your wealth defines you. atleast in this country it does. you can sing all the happy song lyrics about individuality, and self-expression, and going against the grain, and being different all you want, but at the end of the day, if you don't have a drive to help YOU... you're lost, and you don't deserve a dime from the government. the liberal party has no problems putting american tax dollars in the hands of people like my friend X.
its sad to say, but a majority of broke people, will sit and complain about outside reasons on why their lives are horrible.
a very successful friend of my father told me at a young age... when you're faced with a dilemma, there's 2 types of responses... either "i can't do that, are you crazy? that'd never work" and there's "could be rough, but damnit i'll find a way to make it work" and if more people in america were the latter, i'd have no problems with all these taxes benefitting the lower end of american wealth
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