The Little Guy is Still being Left Out
Why do all the economic numbers look so good ? It seems simple, if you bail out the big guys, they will look good for a while, especially the S&P 500 crowd that the CNBC crowd follows.
The Obama administration has way too many Harvard, Yale, and U of Chicago types leading its thinking. For all the talk of the little people, if you follow the money it went largely to the big entities. Sure we have had money for clunkers and help on foreclosures, but what this Administration had to do was bring out a major government investment that would create jobs. They have not done it. It had to be big, at least $ 5 trillion, and it had to be in the only area we need investment, Green Energy. They let the blue dog Democrats and the Republicans cow them into inaction.
They will pay a big price. The date 9/9/09 is the date we are watching. That is six months from the March bottom and the date when the investors who bought the bottom can start taking short-term capital gains. There were not many of those investors, otherwise there would not have been a bottom. For most investors 11/4/09 will be the date to start taking profits and there probably will not be any left on the table. The S&P 500 price on that date was 907.
9:17 AM CDT