Friday, January 22, 2010

Just Say No to Big Government Spending

I've seen 500 point slides in the DJIA rebound 1000 points two weeks later, so the following is spoken with due caution.

But it seems whatever happens to a major government package, it isn't good for the stock market. The gradual decline of the DJIA had been slow and orderly until the TARP passed, where it fell off a cliff, and then the next time we saw a major and abrupt increase, that was after passing the Obama Stimulus.

Now, following the election of Scott Brown in Massachussets and hopefully a failure of ObamaCare and a return of some control to government spending, we still see these agressive declines. I was expecting passage of ObamaCare and then a major correction in the DJIA to follow. But it seems that even its imminent failure was sufficient to trigger the slide.

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