The Dow Jones Index does not lie

Unless one of the better turn arounds of the stock market history occurs in the next 10 minutes, the Dow Jones will have fallen several hundred points, around the range of 7900 or less (a mere 300 points from a target I predicted over 3 months ago). This is happening at the same time that the Senate has pass the economic stimulus package created by House Speaker Nancy Pelosi, bloated by Democrats, and touted by President Obama. So I have to wonder, exactly which people involved with the economy think this is a good plan?

This plan, and the extensive bailouts that President Obama’s tax dodging Treasury Secretary Geithner, are proposing obviously have not convinced the critical group of Americans that good times are anywhere close to the horizon. Since these investors also represent a large portion of the small and mid-sized business owners in America, as well as the world, I expect only one thing. All the emphasis of gloom and fear drummed up by Democrats will actually come to pass. Just as a result of their actions, and not the inaction they claim.

Unemployment in the nation is bad. Not quite the nearly 11% level that the policies of the Carter Administration created, but President Obama and the Democrat-led Congress have just gotten started. We currently hover at 7.8% unemployment, with the seeming goal of 25% reached in the Great Depression getting closer to the crosshairs each day.

None of this has stopped any Democrat, including the President from pressing forward. We have waste and pet projects, call them earmarks by another name, and little hope of improvement. Just look at what is planned.

“$10 million for urban canals, $2 billion for manufacturing advanced batteries for hybrid cars, and $255 million for a polar icebreaker and other "priority procurements" by the Coast Guard.”

That says nothing of the $100 million to be spent on Honey bees and similar items I cannot imagine creating jobs.

“The plan that we've put forward will save or create 3 million to 4 million jobs over the next two years.” – President Obama

“The president's own economists, in a report prepared last month, stated, "It should be understood that that all of the estimates presented in this memo are subject to significant margins of error."

But the polispeak is great. The promises of improvement sound fantastic when you include supposed facts that no one can ever corroborate. And the inclusion of key words like “save” helps keep the polispeak from becoming an outright lie, while showing the absolute lack of confidence that the plans instill. Yet this is good enough for the average American that does not review transcripts nor listen intently to ever word. But those who invest and run companies do, more often than not.

“The economic stimulus bill would allocate about $20 billion to help hospitals and doctors transition from paper charts to electronic health records for their patients… By itself, the adoption of more health IT is generally not sufficient to produce significant cost savings, the Congressional Budget Office reported last year.”

Again it is the confusion of facts and expectations, without proof, that keep many Americans from noticing the horrendous ramifications of the stimulus package and continued bailouts. The examples are not limited to just these few statements, but a collection of comments to the public since Pelosi first stumbled into the idea of another stimulus package in October (then priced at $50 billion total), and the factual items in the nearly $900 billion (actually over $1 trillion when interest is included modestly) terms.

The Dow Jones Industrial index is a forward indicator of the mind of business and economic health. Often it overreacts to the actions around itself on any given day. And there will be more than enough pundits and economists declaring just that, if the major news media that has invested so much into President Obama bothers to investigate that much. But economists don’t work the stock market. Stock brokers and business owners do. And without the degrees, charts, and visions of Santa delivering a healthy economy they have concluded, since January 2nd, 2009 that things are going to only get worse.

So I ask you, who do you believe? Congress and the Executive Administration that routinely fail to pay their taxes, write bad checks, organize pay-offs, and lie about the job they were elected to do (Barney Frank)? Or the guy who signs your check, watches the economy in action every day at every tick on the Dow, and the guy that will give either of those 2 enough money to expand their business and employ more people?

I was a stockbroker, so my opinion is biased. But you can look at the facts and the carefully stated words for yourself. Just don’t look at the value of your 401K while you do so.

What "Change" amounts to in Washington D.C.

I find it so interesting that some are surprised by the problems in the Obama Administration. It’s not like anyone should have expected the Democrats to be or act better.

To start with the top, President Obama pledged that his Administration would remove the “old politics” and change how Washington does business. It seems the business was given to the public.

Rather than bring in new people to Washington, President Obama has run through the Clinton Administration, and a few popular old Democrats for nearly every position. Nearly each appointment has been a staunch liberal Party-line Democrat.

Case in point is the big pick, Secretary of State Hillary Clinton. She ran a campaign grounded in polispeak flip-flops, race baiting, gender cards, and division in the Democratic Party. For this she was rewarded with a position of massive power, repayment of millions in debt from the campaign, and the ability to position herself for a future run at the Presidency.

And let us not forget that Secretary of State Clinton is known for her Whitewater profits, inexperience in world politics (though she borrowed from her husband’s efforts liberally), ability to dodge invisible bullets, association with a fugitive from the law (Norman Hsu) – including her acceptance and reluctance to return $1 million in campaign funds once he was caught, and most recently her inflexibility to remove any question of impartiality regarding international multi-million dollar donations to the Clinton Foundation.

There is of course the joy of Vice President Biden. He is known for his ability to insult minorities, including insulting references to President Obama (when he was Senator Obama) at the drop of a hat. VP Biden is known as well for his multiple political gaffes, and strong liberal leanings. Not to mention is total disdain for the experience of President Obama, as well as his prediction of an impending catastrophic event due solely to the election of President Obama. But he is the bright side of the Administration and Congress.

Then we have Tom Daschle. He is slightly better than Chris Dodd in that his ability to benefit from his position was only temporary. By that I mean he has finally paid $128,000 owed to the IRS. And since he was so kind as to finally make this payment, the IRS decided not to ask him for the $50,000 penalty you and I would normally have been hit with. Never mind the fact that he waited 4 years (from 2005) to make the payment, and that the only foreseeable reason he made the payment was to get this major position. And don’t mind the fact that Daschle is a hypocrite

“Make no mistake, tax cheaters cheat us all, and the IRS should enforce our laws to the letter. ” Sen. Tom Daschle, Congressional Record, May 7, 1998, p. S4507.”

But why should he worry. Since Treasury Secretary Geithner, who runs the IRS, didn’t find it important to pay his taxes either (that took 8 years). At least not in any timely manner. And without the penalty as well.

Keep that in mind when you get your tax bill. Because I guarantee you won’t get the same treatment. But who are you? Just a voter.

But I mentioned Chris Dodd. He runs the Senate Banking Committee. You know the part of Congress that completely ignored every sign of the mortgage crisis. The people who along with Representative Barney Frank in the House Banking Committee looked America in the eyes and said everything was under control and anyone saying otherwise was a liar – right before several banks and AIG had meltdowns. But Chris Dodd is special. Or at least his mortgage company thought so.

It seems that his mortgages, that he promised were the same as everyone else, have turned out to be sweetheart deals. I guess everyone else means every Democrat that holds a political office. And it only took him 6 months or so to reveal this information – that he promised to provide the public 5 months ago. Compared to the others he is lightning fast. It only took until after the election to mention the truth.

Ah, but don’t forget House Speaker Nancy Pelosi. The woman behind a stimulus bill that fails to provide stimulus. Unless you think pet projects like honey bees will somehow help those 162,962 people that were laid off in January alone, get new jobs. .html But don’t worry, because she too has her own sweetheart deal in the works. Not that it’s secret, but you should recall that Speaker Pelosi holds a large stock position in a green energy company, one of the areas the stimulus plan will be dedicating money to for research to find a way, over the next 5 years or more, to create anything.

Considering all these problems, issues, bald-faced lies, broken promises, and abuses of power, is anyone really surprised? Because the American people were promised change. And if this isn’t a change (for the worse in my opinion) then can you imagine once all these people really get the ball rolling? Aren’t you excited?

And if you doubt a word of what I have said, just check Google and see the news that the media is keeping quiet. Because it would look really bad if the news media held President Obama and the Democrats accountable after having sold their souls (and committing active self-admitted bias) to get that feeling down their legs.

And some are surprised? Just wait, we have 3 years and 11 months to go.