Entries in the Category "Financial Crisis"
Obama destroys retirement plans everywhere!
Ok... how long does the market have to drop before it becomes Obama's market. He was quoted saying that he doesn't pay attention to the stock market because it's like a tracking poll. However, if you apply those rules to the market... the trend is downward and that says wall street does not like his economic plan. Now it is starting to spread to main street. People all over the country have their entire life savings wrapped up in the stock market. As we keep seeing our 401k accounts dropping... everyone's confidence in Obama does too. He says he's not going to use the stock market as a barometer? Well he should. Blaming Bush will only last so long. As far as I'm concerned, this is now Obama's economy. He is destroying it with his radical economics. You can only tank the stock market so long before the people notice. No matter how good of a speaker someone is... money talks.
After Passage of Obama’s Housing Bailout… STOP PAYING YOUR MORTGAGE!
I came from a lower-middle class blue collar family. My mother and father work their butt off to keep our family afloat. Sure, they have a mortgage… but they have made sacrifices to make sure they pay their mortgage payments. Sure… they are feeling the pain of recession. But… they are still fiscally responsible. Obama is telling everyone that someone out there who doesn’t work… but bought a house… should get bailed out? I don’t think so.
So basically… this is what Obama is saying. If this bill passes… all 50 million people in this country should stop paying their mortgage. Shouldn’t we be encouraging responsible behavior? Obama’s plan is a disgrace to this country. Obama’s plan is an absolute spit in the face of the Joe the Plumbers out there. Obama’s plan says that if you don’t work hard to get ahead… you will get rewarded. If you do work hard… you’ll give the government all your money so Obama can give it to those who chose to sit on their butt watching TV and eating potato chips all day long.
Obama Abandons Middle Class With Housing Bailout!
This may be a surprise for the Obama worshipers out there… but Obama has abandoned the middle class. He has decided that he would rather support the lower class. Who cares about the hard working middle class? Barack Insane Obama has decided that those who are irresponsible with their money should get bailed out with my tax dollars. I came from a lower-middle class family. I worked my butt off through college. I took out a ton of loans. Now I am reaping the benefits of that hard work. Obama is telling me that I need to pay for the people that took out foolish loans. I don’t think so Mr. Obama…
Stock market votes no on the stimulus and bailout
Why is the media not talking about the stock market's response to the Obama economic plan? The stock market was at 9600 when Obama was elected... it has been going down more and more every time Obama has taken a step towards implementing his economic policies. The market is at 7400 today. That is a drop of 2200 points. That is a drop of around 23% since he was elected. I think the message from wall street is clear. Obama's economic strategy is the wrong one.
Fear of Obama presidency showing up in the stock market?
Is the fear of the Obama tax plan hurting the market? James Pethokoukis of the left-leaning US News and World Report believes this is the case. Another writer at the New York Post believes this as well. It is an argument that makes a lot of sense. Obama is going to put in a lot of Wall Street hate into his tax structure. Raising capital gains to levels we haven't seen in years could cause investors to bail out while they still can. I think that the "Spread the wealth around" economic plan is scaring investors. There is a good chance that we are witnessing what has been deemed "Obama Panic"
1) I find it hard to believe that fears about a deep recession are suddenly dawning upon investors and thus are solely responsible for kneecapping the market. I've been hearing such dire forecasts for weeks from top Wall Street economists, and I really think they're already baked into the cake. (And credit markets actually look like they are finally picking up a bit—a plus for stocks.) So with that perception locked in, maybe the future political landscape is finally playing a greater role in the minds of investors, especially with polls showing a possible landslide Obama win and big Democratic congressional majorities. Is it really more plausible to suggest no effect whatsoever from a possible once-a-generation, political sea change, especially one that moves away from the winning economic formula of the past 25 years ? Not even a smidgen of worry? C'mon, now.2) Obama wants to raise capital gains taxes on a good chunk of the money currently in the market. Nearly 80 percent of total stock holdings are held by people who would be subjected to higher investment taxes. Not only does that hurt their future after-tax returns, but it also undercuts the future productivity of the economy, thus crimping the future stream of earnings generated by corporate America. So the whole stock market will suffer from a sort of collective tax punishment. Hey, even potential Obama t reasury secretary Jamie Dimon thinks raising taxes right now is a goofy idea.
3) Then there's the Joker Scenario, inspired by one of my favorite schemes concocted by the Clown Prince of Crime. It's the one where he poisons various toiletries like shampoo, deodorant, soap, and toothpaste. But only when used in combination are they deadly. Investors might not be worrying so much about a Democratic president, given the current one-way state of the polls, as they are about the combo of Obama + Nancy Pelosi + Harry Reid. And you can toss Charlie Rangel and Barney Frank into the mix as well. Recall what Frank said the other day: "Yes, I believe later on, there should be tax increases. Speaking personally, I think there are a lot of very rich people out there whom we can tax at a point down the road and recover some of this money." Look for Democrat proposals for a "millionaire's surtax" on top of the higher rates from repeal of the Bush tax cuts in 2009. Or how about this idea to do away with 401(k) plans. Maybe the risk of a deluge of ill-conceived ideas is apparently why, according to my pal Amity Shlaes, split power in D.C. produces an average 9 percent positive return for stocks vs. a negative 8 percent when one party holds Congress and the White House.
4) It's certainly true that recent polls have McCain with only a narrow lead, at best, over Obama among self-described members of the Investor Class. Yet I would hazard a guess that active investors are far more conservative—even libertarian—in their economics than the great mass that is 401(k) nation. (That sure has been my experience.) They are likely the ones selling hard right now.
5) Then there's the Great Experiment of 2009. In 1980, anxious Americans voted for lower taxes and smaller government as the solution to the nation's economic ills. Would the opposite prescription also have led to a 25-year economic boom? With Obamanomics, voters may be about to play a fascinating game of "what if." Except it's for real. When Goldman Sachs ran a sophisticated economic simulation of the effect of a total repeal of the Bush tax cuts, the computer predicted a 3 percentage-point drop in GDP. Maybe investors fear that with perhaps a trillion-dollar budget gap ahead, revenue-hungry Dems will raise taxes further than Team Obama is suggesting—right into the teeth of a weak economy. What if, indeed.
We "rescued" LTV steel... and look what happened
The more I think about this bailout plan... the more angry I get. Anyone from Cleveland will remember what happened when the city tried to bail out LTV steel. LTV steel needed to take out a 250 million dollar loan to keep their business afloat. They didn't have enough funds to take out this loan. They turned to the government to bail them out. However, despite getting the bailout, the business went under shortly after. They were only required to pay back 85% of the loan. This is a 37.5 million dollar loss for the banks involved (although I'm sure the government helped absorb that). The government also lost out on the money they supplied in their bailout package.
What lesson does this teach us? If a business is failing, let it fail. It is failing for a reason. Money pumped into dying businesses will be lost.
The american people will not get a return on investment on that 700 billion dollars. If that money were put into defense and other technologies, those technologies could be sold to other countries. This would bring more money into our economy.
(http://www.cleveland.com/indepth/steel/index.ssf?/indepth/steel/more/10069434435335104.html)
Just how much does this bailout plan cost the taxpayers?
According to the IRS, there are 138 million taxpayers in the United States. If the 700 billion dollar bill of this bailout would be split evenly, we would all owe $5072.46. This is unacceptable. I did not screw up. I did not make a poor financial decision. These banks should be allowed to fail like any other business would. Too big to fail? Well they did fail... and they are too big to bail out!
Where's my bailout?
So I have over $30,000 in student loans. My parents have a $50,000 loan on their house. We're struggling financially. Where's our bailout?