The Dow Jones Industrial Average took off like a booster rocket was strapped to its back, and stocks ended the day up 430 points, or almost 4 per cent. Nearly making up for yesterday’s 600+ point plunge. That’s the good news.
The not so good news? The reason the Fed is pinning interest rates on federal funds so close to zero, is, according the their statement as reported by the Wall Street Journal, that the economy will be weak “at least through mid-2013.”
This prediction, if it comes with unemployment close to 9 per cent coupled with anemic growth, may well doom Obama’s reelection chances.
Which is very good news despite being not-so-good for the economy. Let’s put it differently: the Fed isn’t causing the poor economy. High corporate taxes, thousands of pages of new and costly regulations, and massive new government spending has trashed the economy’s chances for a quick and robust return.
Business just doesn’t seem to trust Obama and his minions in the various nooks and crannies of the vast federal bureaucracy. There is simply too much uncertainty, and the prospect of higher taxes on all those corporate-jet-owning millionaires and billionaires who make more than $200,000. Yes, $200,000 doesn’t compute as “millionaire” or “billionaire,” but, hey, they’re “rich” according the Obama The Mighty Class Warrior.
This president does not seem to be able to get past his religious belief that taxing and spending our money is the path to prosperity.