What a change. It was just this past 50 days that Obama has been the Doom and Gloom president, telling us all just how bad things are, that it isn't going to get any better unless we spend trillions of dollars for make-work and pork projects, and that government is the only solution.
And now, after he has been hammered for his immature leadership skills and ignorance of what his rhetoric has caused among the citizens, he finally says, Hey, maybe I should be more positive!
The last three days have seen a market surge, which is a positive thing. However, the administration wants to claim that it is because of their Pork Package that was passed last month (none of which has been disseminated and won't for months yet). No, the reason that the market is on a roll right now is because of two things. First off, Warren Buffet, the clown who supported Obama during the campaign season, but who now is saying that Obama's economic advisors are off base, has come out against an utterly assinine federal mandate called Mark to Market. Not only has Buffet gone public in his idea of eliminating this evaluation system of securities, but so has most of the business world, and now some in Congress are getting on the band wagon.
The idea of mark to market is to believe that the market itself is an arbiter of an asset's worth. Yeah, this works when the market is stable and going up or down as usual. However, it destroys the real value of an asset in times of market break down, which is what we are experiencing. The very idea that this Neanderthalic, archaic valuation system imposed by the SEC may finally be scrapped to the junk bin has had a euphoric effect on the markets. We are seeing positive signs of valuations coming back in line, which is normally around 14-16 price-to-earnings ratio.
So the truth is Obama and his policies have nothing to do with the uptick in investor confidence, which is still at its lowest level in over 80 years. And with almost half of this country's economists telling us that the Obama administration's policies are off track, we may now see a shift in idealism to realism. But I wouldn't hold my breath. Until we break the liberal mentality of government knows best, and get rid of many of these incompetent people (Pelosi, Reed, et al), we are going to see a continuing slide in all facets of our country.
