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Nixing Social Policy Would Rally the Stock Markets

Why I'm Starting to Like Obama...

By Brian Hicks
Friday, January 29th, 2010

Editor's Note: Today's Wealth Daily comes from Angel Publishing Founder and President Brian Hicks. In it, Brian explains how President Obama's actions — or rather, inaction — may lead investment markets to a rally comparable to the tech boom of the 1990s.

Next week, I'll be sending you my new gold research, in which I name three major gold companies expecting to increase gold production this year... and what this could mean for investors. I'll also be giving you the name of another company that expects to more-than-double gold production from 500,000 ounces to 1.1 million ounces per year — and more. You'll get it all next Friday.

Good investing,

Luke Burgess
Editor, Wealth Daily
Investment Director, Hard Money Millionaire 

————————————————————————————————————

The late, great filmmaker Stanley Kubrick wrote in Paths of Glory, "You're an idealist, and I pity you as I would the village idiot."

It must be tough these days being an idealist. Or a socialist. Or even a Democrat.

I just read an absolutely great piece of idealist anger against Obama titled "How to Squander the Presidency in One Year." We know the Tea-partiers and Independents are fed up with Obama, but this excoriation of the man and his presidency comes from the extreme left.

It's a rather long diatribe, which is indicative of the author's anger and disappointment in Obama. But if you get a chance, I highly urge you to read it. It's both scary and enlightening about how the left wants to "change" America... and more specifically, change you.

One of the funniest and personally satisfying charges leveled against Obama in the article is the following:

A related brilliant move is to mobilize a giant army of passionate volunteers dedicated to putting you in the White House, and then do nothing with them once you get there, other than taking them completely for granted and never calling upon them to do anything in support of your agenda. Be sure to deflate their enthusiasm in every way possible.

I love it.

And here's where it gets downright nasty...

While you're at it, if you're trying to run the most failed presidency ever, a really good idea is to campaign in the grandest terms possible, and then deliver squat. You know, talk about bending the arc of history. Invoke Martin Luther King's dream and his struggles and even those of the slaves. Ring the big bells of generational calling. Remind voters every thirty seconds that the country badly needs "Change!" Then get elected and turn around and continue the policies of your hated predecessor in every meaningful policy area. Only with less conviction. People will love that.

I love it so.

By the way, I have a question for the naïve and delusional who I argued with prior to Obama taking office. When you didn't believe me when I said that he could never live up to the expectations... let me ask you this: "How do you like Obama now?"

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But wait a minute...

I don't want to rub salt in your socialist wound. Believe me when I say I feel your pain. I really do.

After all, there was so much promise in Obama... so much hope. This was your chance to stick it to the rich... an opportunity to implement real change... to provide health care to everyone... to make everybody equal... to make America great again, respected by the world community.

Now it's all squandered away — gone in a year!

Look, before you start sobbing in your cup of Utopia, I come to you with some words of encouragement. I'm here to tell you that I'm beginning to like Obama. Yes! I'm starting to like the guy!

You see, his most ardent supporters are now turning on him like a pit bull that hasn't been fed in three days.

Have you seen Keith Olbermann lately? He's gone from "most annoying dude" on television to "biggest cry baby" because he didn't get his way.

And Keith's not the only one. Rachel Maddow and The Huffington Post are now attacking their impotent, socialist savior for proposing a "spending freeze."

Hey, even Dick Cheney agrees with ya, Rach. Remember that Evil Dick said that "deficits don't matter... "

Watch here as Rachel Maddow tries to give a lesson in economics to Joe Biden's economic advisor, Jared Bernstein, over the spending freeze.


But it gets even worse.

Here are a few recent headlines from articles by some heavyweight liberal writers:

        * "It's Official: Obama is an Idiot"  - Paul Rosenberg

        * "Barack Herbert Hoover Obama"  - Brad DeLong

        * "Obama Liquidates Himself"  - Paul Krugman

But I'm not complaining... not in the least. In fact, I'm downright giddy.

That's because if I'm right — and if Obama's health care reform is dead in the water — then the market is about to take off like a Roman candle.

You see, history is repeating itself.

When the Clinton Health Care Bill effectively died in the fall of 1994, the stock market breathed a huge sigh of relief. And the Dow took off like a bat out of hell.

Take a look:

market after clinton health care

The health care defeat defanged Clinton. He sobered up from the coffee house agenda he was pursuing. In terms of policy, he did nothing for the rest of his tenure... largely because he was president during a time of divided government. Wherever divided government exists, liberty thrives, both economic and personal.

Obama is now staring at a potentially similar situation.

If Obama gets no major social policy passed in the next three years, the market will rally big time. Mark my words.

So here's what I want. Obama... please keep fighting the good fight... keep doing what you're doing. Because it'll be bad for you and your idealists, but good for American investors. 

Now that's change you can believe in.

Profitably yours,

Brian Hicks

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Comments:

Comment by Liz on 2010-01-29
as usual. Why bother voting for Democrats when we continue to get failed Republican philosophy, ideas, and policies? Ever since the 80's, we have mistaken what is good for the stock market with what is good for American citizens. As long as something makes the stock market go up, it matters not what the personal and fiscal consequences are. No other first world, industrialized, democratic, civilized country in the world would dream of having our health care system or our hostility to workers and citizens. We are socialists after all, it is simply reserved for those at the top.
Comment by James Brice on 2010-01-29
It's not even worth the words to describe what an idiot you are.
Comment by Robert on 2010-01-29
I'm voting for you as President. :)

The fact that this man was able to fool so many people in 2008 is what really scares me. I thought the American people were smarter than that. Are we so down and out that we need a "savior"?

Thanks for a great article. I look forward to reading more of what you have to say.
Comment by don johnson on 2010-01-29
i personally dont care what you think of our president, but it gets really old seeing the same crap day after day!! i get the feeling you must be a do nothing republican!! i'm sorry , i was wrong you enjoy complaining so you can feel good.
Comment by Kaare Taule on 2010-01-29
One year after his entrance how can American people try to think that it is possible to solve all your problems in 1-or 2 years.
With the economy, 2 Wars going on and a big problem with many people without work.

You need a BIG Change, bigger than Obama promised during the Presidential companie last year.
The American's dont understand how important it is to support this "Change" for the future !

I hope that you all find a way out of it and support your new President, he need it and you all need it !
Comment by RRG on 2010-01-29
some of you americans are unbelievable, you love to knock people down. Obama a socialist come on, do you not give a damn about people, the less fortunate that don't have the means to gain from 'capitalism'
Comment by Janus Daniels on 2010-01-29
Get a clue.
Obama taught constitutional law at U of Chicago, home of Milton F. and the Chicago School of Economics (which went even further right than Milton F.). Everybody who pays attention expected an extremely conservative president (as opposed to right wing insane McCain, or right wing stupid Palin). Inevitably, all substantive criticism of Obama comes from the left; it has to.
Comment by Larry Cerenzie on 2010-01-29
Brian,

A very good, to the point, concise treatise on the state of Oboma. While we do not have to agree on everything, when we CANNOT agree on even the basics of how & why our land was founded, we are at an impass. That is where I am with Obama. He now will consider offshore drilling -- but only in Brazil with Soro's led Petrobras. We need drilling here. WE need mining here. We need logging here. WE need industry here. We need real renewable energy that makes sense. For wind to work, we must have Cheap, Massive-Scale energy storage. For solar as direct PV, we need proper signal conditioning (and storage) to keep from knocking whole grid sections offline. And we must keep Sen Feinstein from killing huge projects that do make sense in the name of "the view" (Ref: Mojave Desert action during Christmas time this past year).

Brian, as a chemical engineer who studies energy of types every day, we need an approach that makes sense --- and does not just take money from your and my pocket and put it in political croony's latest scheme. While we may not always agree, I respect your work. And this last letter puts us squarely on the same page.

There is no one "silver bullet" to solve our energy and budget problems but a wide range of energy projects from traditional to non-traditional to renewable is the correct approach which I believe you too espouse.
By the way, right now I working on a new tar sands process for U.S. tar sands production, Oil & Gas drilling in the Gulf Coast & Montana; New Fuel Systems that allow dramatic fuel economy improvements (40-46 MPG on Mustang Cobra and Corvette both) and on new bio-mass/solar plants with base load capability in California and Mexico. With help form above, we can all work together to make a difference.

God bless you my friend,

Larry Cerenzie
Spanish Fork, Ut
Comment by R on 2010-01-29
fuc* the politics. what about investing?!?
Comment by Linda Nelson on 2010-01-29
This article stinks!! Give Obama a chance. Apparently you have a short memory. He took over the job from the WORST president ever. It takes more than a year to correct the total blunders and stupidity of 8 years and that's not even counting all our dead kids and Iraq citizens. Clearly, you, like the former president had no vested interest in that war.
Comment by Linda Nelson on 2010-01-29
This article stinks!! Give Obama a chance. Apparently you have a short memory. He took over the job from the WORST president ever. It takes more than a year to correct the total blunders and stupidity of 8 years and that's not even counting all our dead kids and Iraq citizens. Clearly, you, like the former president had no vested interest in that war.
Comment by John Gallo on 2010-01-29
Dear Brian,

I am (was?) a member of one of your services, and have a message for you:

"Money does not buy happiness."

I'd be happy to elaborate.

Sincerely,

John Gallo
Comment by Jean Grieninger on 2010-01-29
Surley you must know that the stock market always does better when a Democate is president. It is a historical fact going back 100 years. Also, in the last 81 years the Democrats were in office 41 years and Republicans were in office 40 years. During that time the country was in recession 200 months. That is 147 months under the Republicans and 53 months under the Democrats. Since 1949 the S&P 500 has gained 8.3 % per year under the Democrats and 5.7% per year under the Republicans. Under Clinton the Government spending increased 4.45%per year. Under Bush \"W\" the spending increased 5.75%. You should have rejoiced when Obama got elected not after all this time (1 year). How do Republicans get so missinformed? Do a little research it will improve your attitude.
Comment by Jean Grieninger on 2010-01-29
Surley you must know that the stock market always does better when a Democate is president. It is a historical fact going back 100 years. Also, in the last 81 years the Democrats were in office 41 years and Republicans were in office 40 years. During that time the country was in recession 200 months. That is 147 months under the Republicans and 53 months under the Democrats. Since 1949 the S&P 500 has gained 8.3 % per year under the Democrats and 5.7% per year under the Republicans. Under Clinton the Government spending increased 4.45%per year. Under Bush \"W\" the spending increased 5.75%. You should have rejoiced when Obama got elected not after all this time (1 year). How do Republicans get so missinformed? Do a little research it will improve your attitude.
Comment by Stan johnson on 2010-01-29
I admit I'm disappointed in Obama's performance ; but I still like him 100% better than Bush . The Bush Admin. was nothing but an outright bunch of thieves. No program big or small was spared their sticky fingers ; rember the billion that disappeared out of both Katrina and Iraq money and that's what they admitted to , No bid contracts to Their buddies , every program twisted to reward their backers .not to mention gutting of enviromental laws to benefit big oil . I think Obama needs to follow Clinton's lead in that when The Republicans attack hit them back twice as hard. They are Hypocrits with feet of clay , who only understand that kind of response.
Comment by Michael DuPree on 2010-01-30
Brian...as I listened to Maddow try to chastise Obama for the spending freeze, Maddow seemed to be consciously attempting to not listen to Bernstein. I heard Bernstein be very clear how the targeted freeze (not an across the board freeze) would allow the Obama administration to help the middle class as Obama promised, as well as help reign in government spending. Of course, Maddow has a job to do, which is to incite controversy. She did her job well, which helped me hear Bernstein do an excellent job of helping me understand what the freeze is really about.

So I'm not sure if you are correct in what you think will happen if Obama continues as he wants to.

All of us really need to be asking just what the heck anyone means by what they say instead of too quickly responding with what we think they mean based upon our own prejudices, beliefs and desires. But such is the world. As Simon and Garfunkel sang many years ago, "A man hears what he wants to hear and disregards the rest."
Comment by Hayduke on 2010-01-30
I followed this link from Naked Capitalism and what a disappointing article. I didn't realize I stumbled onto the teabagger's investment page.

Did the author have any complaints during the 8 years Bushco spent damaging the economy? Or did he recommended buying stocks in mortgage lenders, investment banks, and homebuilders.

Social mood is changing Brian. Even with the stock market rebound, nobody gives a shit, as globalization and free markets are revealed to be a scam on the middle class.
Comment by Luz Muller on 2010-01-30
I still like Obama. He is trying to do something for the average citizen; not for the rich owners of stock and wannabe rich like the republicans. I was/am for socialized health care. Shame on you!
Comment by S. GERNLER on 2010-01-31
PRESIDENT OBAMA WILL GO DOWN IN HISTORY AS ONE OF THE GREATEST BRAVE PRESIDENTS IN THE HISTORY OF THIS NATION. CLEANING UP THE MESS FROM THE LAST EIGHT BUSH YEARS IS TOUGH FOR ANY ONE BRAVE ENOUGH TO TAKE ON SUCH A CHORE. NEVER IN THE HISTORY OF OUR GREAT NATION HAVE WE DECLARED WAR AGAINST ANOTHER NATION WITHOUT CAUSE. OVER 4,000 YOUNG AMERICAN LIVES WASTED! ONLY GOD KNOWS HOW MANY THOUSANDS OF INNOCENT IRAGI LIVES, GONE! FOR OIL RIGHTS, OH YA! THANK YOU MR. PRESIDENT FOR STANDING FIRM FOR ALL AMERICANS AND FOR CARING ABOUT ALL PEOPLE IN THIS WORLD. I HAVE TRAVELED THE WORLD AS A TRAVEL GUIDE AND HAVE HAD THE NEED OF MEDICAL CARE FOR SOME OF MY TRAVELERS IN FRANCE, ENGLAND AND EVEN WESTERN SAMOA. THESE AMERICANS IN NEED OF MEDICAL CARE IN ANOTHER COUNTRY, PAID NOT A PENNY OUT OF THEIR POCKETS,BECAUSE THESE NATIONS GIVE FREE MEDICAL CARE TO THEIR CITIZENS AND TO ALL VISITING NON-CITIZENS IN NEED OF MEDICAL CARE. IN OUR GREAT USA; NO MONEY, NO MEDICAL CARE, TOUGH LUCK, DIE! THANK YOU MR. PRESIDENT FOR CARING FOR ALL AMERICANS IN NEED, BE IT THE RICH OR THE POOR. SICK OF THE MEDICAL INSURANCE CONTROL AND GREED! YES, INDEED! THE RICH GET RICHER AND THE POOR GET POORER!
Comment by Robert Reppy on 2010-02-01
What, you're just now coming around to liking Obama? Your snide sarcasm aside, can you really say that you preferred having a moronic idiot like Bush and his evil Puppetmaster Dick Cheney in office for 8 yrs? Did you really like the failed, disastrous Republican agenda better? I hope you didn't, because only an idiot would. I love Obama for one reason above all else; he ain't Bush!