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O!bama’s tin ear to market’s message
By Nixonomics | November 21, 2008
Does the media’s great hope for the country, the one and only O!bama have a tin ear for what market’s message to him and his administration? How else to explain his decision to roll out announcements on cabinet posts? Is appointing a Health and Human Services (HHS) secretary (Tom Daschle) the number one priority given what O!bama’s stated view that concerns on the economy are the most important today? Perhaps appointing Hilary Clinton as Secretary of State will rev up the economy and appointing Eric Holder will get banks lending.
For all the smarts the media’s O!bama is supposed to have, our president-elect seems to have a tin ear for the market’s message to him which as of today stands at -20% (measured by market performance from the close of the market on November 4, 2008).
Investors, businessmen and women and those that make decisions as to how, when and what to risk their hard earned capital on each everyday have gotten nothing from the media’s O!bama. The world awaits his great oratory on the economy, on fiscal policy, on regulation, on restarting the financial system, on taxes, on a numerous factors that cause uncertainty, fear and a contraction in economic activity. But our president-elect deigns to appoint cabinet posts based on some new, weird calculus best understood by our media that has not raised a peep as to why he has not announced his candidates for treasury secretary.
In the face of this cluelessness, the market’s have needed no invitation to continue doing their recent handiwork of going about destroying the excess production capacity of the country willy nilly. The only factor being used to make determinations as to survival or death or is one: debt. Those that have debt coming due in the next 12 - 18 months face bankruptcy irrespective of what they do or their future business prospects. That’s the madness of markets in the throes of mania. The markets act like a car without a driver mowing down everyone in its way without discrimination.
O!bama’s decision to simply ignore the market’s message to him has given a boost to the market’s destructive tendencies. The sooner the market’s understand the new administration’s priorities, the sooner it can discount decisions that are going to be made. But the media’s O!bama wishes to wait and see the markets go through their current episode random act of cruelty and punishment.
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