Reversal: Obama Up, Market Down

Last week I said that the market was rallying on Obama's stumbles. This week it appears that the market is tanking on Obama's successes. Although the final vote isn't done yet, the administration and Harry Reid successfully peeled off (bamboozled) three squishy Republicans in order to foist this dishonest and dangerous stimulus package on the American people. This constitutes a success for the President. Markets not so much. Previously this week, the one tax scofflaw that Obama did get through the confirmation process - another Obama success - made his contribution to the markets rather inauspiciously.

So far the pattern has emerged. Obama's agenda slows, markets are up. Obama's agenda advances, markets are down. Not that Obama's priority is the stock market, but it is a barometer of the economy and of our future. If it stays in the tank, Dear Leader is a One Termer. How much hedge fund money and Goldman Sachs money will be lining up for Obama 2012 if we've had dead markets for four years? Not much. Maybe that is why Obama is ramming the stimulus, with its government employees' union and ACORN goodies - down our throats. This is not surprising. During the campaign Obama was smooth, he lined up Buffett, Volcker, Furman, Goolsbee and a parade of financial luminaries. That looked like a solid bet economically. What happened? Either he got rolled by Pelosi, Obey, Reid & Co. or he was simply lying all along. The market has to adjust to that new reality, the reality that, in the economic sphere, we bought usselves a pig in a poke.

UPDATE: Wall Street is realizing..."Holy Shit, these guys are awful. Volcker? Where's Volcker? Where is anybody with a brain?"