CHESSNOID

Today the stock markets bounced around but still closed below the starting line.  At times it looked like a rally was starting to form only to see investors sell into it.

What I thought was surprising is Obama’s announcement that Americans should start buying stocks.  We have lost over 50% in the market from the October 2007 highs, Warren Buffett just announced his worst year ever and lost billions, and we still have AIG and Citi asking for more bailout money.  This seemed to make Obama lose credibility in his ideas of fixing this economy.  I don’t think he believes his stimulus package will work.  That is the feeling I got after I heard his advice to Americans.  Does he forget that people are losing jobs and homes and most 401ks are down 50% in  value?  That means most people Don’t have extra money to buy stocks!

ABC News:

President Obama told Americans to take a look at investing in the stock market this afternoon, a remarkable utterance for an American president, especially as the Dow Jones Industrial Average proceeds on its course Southward.

“What you’re now seeing is … profit and earning ratios are starting to get to the point where buying stocks is a potentially good deal if you’ve got a long-term perspective on it,” the president said on a day that trading continued to hover under 7,000.

The president predicted that Americans’ consumer confidence would improve as they see the stimulus bill “taking root.”

“Businesses are starting to see opportunities for investment and potential hiring,” he said. “We are going to start creating jobs again.”

Since Obama has been in office, the stock markets have fallen about 17-18%. The markets did rally for a bit because Bush was leaving, but now that Obama is in office and he has published his ideas and plans, people realize he does not have real solutions that will mitigate our current economic state that I like to refer to Bush-Obama Depression.