Free Markets, Free People

Let Them Buy Stock

While stocks are tanking, partially due to uncertainty and skepticism over President Barack Obama’s economic agenda, the president encouraged people to invest:

As Wall Street tumbles, President Barack Obama offered up some investing advice on Tuesday, telling a wary nation that stocks are becoming a “a potentially good deal” for those willing to think long term. The White House later cautioned people not to read too much into the statement.

Obama also said he will not base policy on what he called the “day-to-day gyrations of the stock market.” The Dow Jones industrial average fell again Tuesday after plunging on Monday to it lowest level in more than 11 years.

The index has lost more than half its value since a record peak in October 2007. The toll on retirement plans, college savings and nest eggs has been huge.

“You know, the stock market is sort of like a tracking poll in politics,” Obama said during an appearance with British Prime Minister Gordon Brown. “It bobs up and down day to day, and if you spend all your time worrying about that, then you’re probably going to get the long-term strategy wrong.”

Yet lately, Wall Street’s direction has been down, period. Investors are in despair over the state of financial companies, the deepening scope of the recession and doubts about the government’s various attempts to bolster the banking sector and create jobs.

Talk show host Neal Boortz responded with this:

Is he kidding? He’s waging an all-out war against capitalism, and he wants us to buy stocks? This man who wants a government-controlled economy wants us to invest in the stock market? This is like the Surgeon General telling us to go out and have unprotected sex with drug addicted street walkers. Yeah … let’s all do that!

No doubt that stocks may improve in the future, but economic forecasts aren’t that great in the long term, considering the amount of debt being piled up and unfunded liabilities from entitlements.

And who wants to be an investor when they constantly have a target painted on their backs by politicians who make class warfare the focal point of their economic agenda?

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10 Responses to Let Them Buy Stock

  • Well, some think it’s all part of a grand plan.

    I think he’s even more clueless than I suspected during the campaign. My own plan proceeds apace. Step 9 is going well. Now, if we can just find some good candidates yet for Step 11, but maybe something will come out of the Tea Parties.

  • Are stocks indexed to inflation?

  • Yeah. So now the White House should follow every speech, every press release with a disclaimer?
    “This may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, which may relate to future events or future performance. Such statements reflect our expectations and beliefs regarding growth, performance and business prospects, and are based on information currently available to the public. These statements are based on what we believe to be reasonable assumptions, but we cannot assure readers that actual results will be consistent with these forward-looking statements, nor are past results indicative of future performance. We assume no obligation and disclaim all liability.”
    In ObamaSpeak, “Go ahead and buy stocks. You’ll get it even more up the tailpipe!”
    How could all this <i>not</i> be intentional? It’s the perfect excuse to seize 401Ks and IRAs, and to discredit real investing. But not to worry, Saint Obamus will let us invest in more Social Security-type bonds where we pay interest to ourselves.
    That man wants to destroy everything capitalist, the source of our standard of living. He won’t be satisfied until we’re scratching dirt, as long as we’re living “green” and “equal.” Welcome to Zimbabwe.

    • So now the White House should follow every speech, every press release with a disclaimer?

      Heh.  I thought exactly the same thing.

  • “Profit and earning ratios are starting to get to the point where buying stocks is a potentially good deal if you’ve got a long-term perspective on it,’ Mr Obama said.”

    Yea, like I’m going to take stock buying advive from a guy who thinks P/E ratio is profits and earnings.

  • Nice title, Jason.

  • If things were “normal”, this WOULD be an excellent time to buy stocks.  But they aren’t “normal”.  As Jason points out, TAO and the trash in Washington are slavering to KILL capitalism.  Why in the name of all that’s holy would I buy stocks in (for example) energy companies when TAO is PROMISING to bankrupt those he doesn’t like?  Why in the name of all that’s holy should I buy stocks in pharm companies when he is planning to nationalize the health care industry?  Why in the name of all that’s holy should I invest in banks when members of Congress are openly talking nationalization?  Hell’s bells, I wouldn’t even feel comfortable buying US Treasury bonds given how the debt is looking to explode; they’ll be worth about as much as a Reichsmark in 1945 before too long.

    What in the name of all that’s holy is he smoking????  Or is this another demonstration of the market savvy he allegedly picked up from sitting in an office once, stapling reports together?

    • “…they’ll be worth about as much as a Reichsmark in 1945 before too long.”  Comparisons to Weimar worry me far more than comparisons to 1930s America. 

      I’ve thought that  Bush is not too unlike Herbert Hoover, but now I don’t know.  Obama seems far more Hooverish in his policies (pro-regulation, big on volunteerism, his approach to nationalizing home loans, etc.) than FDR-ish.