Investor's Business Daily posted a very interesting article yesterday after the stock market closed down on Friday. The economic news that came out Friday was very positive--the economy posted its best gain in six years--so why did the stock market go down?
The is the chart (from Investor's Business Daily) of the number of cabinet members in various presidential administrations with private sector business experience:
President Obama's problem is his policies and the people charged with putting them in place. As you can see, Obama has appointed a group of people with lots of ideas and little practical experience. The article points out that every initiative that is coming out of this White House is anti-business--the auto industry takeover, the cap and trade bill, the proposed bank regulations, etc.
The article concludes:
"We're reminded of another young president and the steps his administration took in early 1962, when nothing was wrong with the economy and stocks had been hitting new highs. Suddenly, the SEC announced an investigation of the mutual fund industry, JFK himself rescinded a steel price increase and the market plunged 28% in 14 weeks. It was the policies then, too."
I'm really not sure if President Obama is capable of changing to a pro-business (rather than a pro-union) administration, but I suspect that if he is not willing to make a course correction, the ballot box will do it for him.
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