"I'm here to talk about a crisis larger than one we have ever known" - President Obama 2-18-9
I agree and thanks for your part in intensifying it Mr. President! I'd like to take a minute to offer my personal gratitude.
When he signed the spending bill, I expected the markets to drop; it was obvious and inevitable in my humble opinion. As a candidate, he "ripped outgoing President George W Bush for "irresponsibly" doubling the federal debt, then warned that he could preside over trillion-dollar-a-year deficits for "years to come." Now, as President, in demonstrating this repugnance to the Bush deficit, he signs a controversial and partisan spending bill that will cost America over a trillion dollars. Wow! What can we expect him to do in his second month in office?.
Ooh! He is on tv now! The crowd is cheering, they are out of minds in excitement at his presence.
OK. Back to work...
Obviously, the federal debt must be paid some day. The cost of its interest is a crushing expense. Since the government's only source of income is tax, our taxes will have to be increased some day, or the government will have to learn to operate on a much tighter budget. Since taxes move money away from the private sector, taxpayers will suffer burden by having less expendable income. People having less spendable cash will spend less at the mall, thus, business earnings will have to decline. Since stock price fundamentals consider earnings, this bill reduced the value of every business in the market, and the expendable cash of everyone with an income.
Hmm... business values going down... what to do? I took a huge position in a bear market ETF (FAZ) and watched the dollars roll in. In fact, I made about 10% on my investment in less than one day!
And now, he is on TV again, the market is falling again, I bought FAZ again.
That was a quick 3% gain! Many thanks to the new guy!
OBTW: in the name of "transparency" and "full disclosure," what is the plan to re-pay the federal debt?