Why I Wrote “President Obama, This Stock Market Decline is YOUR Fault”
I wrote President Obama, This Stock Market Decline is YOUR Fault because I believe it to be true. First of all, I would like to reiterate that I have no political party affiliation. I hope, just as much as you do, that we get through these troubling times as quickly as possible. I do not hope that President Obama is unsuccessful. I actually hope he is greatly successful and leads the United States to one of the most prosperous times in our history.
On November 5th, I wrote, “I personally think you are set up to fail as a president because over one third of the nations invested wealth has disappeared over the last year. It is impossible to illustrate how important this is. With stock market psychology so negative, it is going to be extremely difficult to get money reinvested into our economy; even with YOUR economic plan.” On that eventful day, the Dow Jones Industrial Average closed at 9635. We are now 31% lower.
I do not feel that the entire stock market decline is President Obama’s fault; that is just ludicrous. He was not even a viable candidate to be the next president when the housing bubble burst and the market started its steady decline. Much of this is the fault of previous administration as mortgage loans were given to risky borrowers who were very likely to default. This was a horrible decision by everyone involved. That being said, the most recent decline cannot continue to be explained by the subprime crisis. Many of the mortgage lenders that were part of this crisis are trading under $5 a share if at all. Therefore, their effect on the overall stock market is minimal. It is other parts of the economy that are now starting to slide.
Yes, subprime is partly to blame for other industries suffering, BUT, the stock market is a predicter of future earnings of publically traded companies. It does not reflect anything that happened in the past. If it did, we would ALL be rich; well, most of us. If confidence is so strong and Obama’s new plan is “right” then why is the confidence in the stock market still so bleak? No matter how hard it is for you to admit, those who have money and are investing are the more intelligent people in the world. Wouldn’t it be smart to observe the actions of the more intelligent people?
Instead, President Obama continues to do things that “redistribute” wealth from the rich to the less fortunate. I do not disagree that the less fortunate need some assistance, but why should the more successful and intelligent Americans be punished? They are the ones that took risks early in their lives to increase their wealth. Over 65%, 271, of the Forbes 400 Richest People in America are entirely self-made. You cannot use the excuse that money and wealth was handed down! These 271 took great risks, believed in themselves and used the knowledge and intelligence they created to become wealthy in America. Why should they have to pay more taxes than someone who has punched the same time clock for 24 years and has done very little to advance their career?
This “redistribution” of wealth has definitely caused a stir within the wealthy communities. If you do not believe so, take a look at the Dow Jones Industrial Average stock chart over the last three and a half months. Yes, it is the wealthy who are investing in the stock market! Those that have the money to invest in the stock market seem to be quite reluctant to put money into the economy through investments at the current moment; that is a fact!
I do not have the answers nor will I ever claim to have the answers, but one thing I know for certain is that knowledge is power. The one correlation that all wealthy individuals have is knowledge. They have knowledge in something that has gained them great power in this capitalist country. It would be very wise to listen to these people who are very displeased with the current actions being taken. Mr. Obama, please use YOUR knowledge and power to analyze the current situation and realize that the actions you are taking and not pleasing the more knowledgeable and wealthy citizens of the United States of America.