I saw this graphic today on Animal New York, and it got me thinking.
The amount of money represented in the graphic above, is one billion dollars. One trillion dollars is one thousand times what you see in the picture. That’s a lot of cash. Ok, now that you have the mental image of one trillion dollars, try to put it into a practical example. I hate Karl Rove and Rush Limbaugh as much as the next guy, but Rove has published a couple of articles recently that have really gotten under my skin (not because of the author). The reason they bothered me, is because the content of the articles, points to all of the discrepancies of the campaigning Obama, vs. Commander in Chief Obama. Today, a different Carl, sent me the link to an WSJ Op. Ed. piece authored by Rove. A lot of it was repeat content of an article published earlier this week, also authored by Rove, dealing with bait and switch. But the part of today’s article that blew my mind, was the following:
Not even Team Obama can forestall unpleasant reality. And among those America now faces is Mr. Obama adding $3.2 trillion to the national debt in his first 20 months and 11 days in office, eclipsing the $2.9 trillion added during the Bush presidency’s entire eight years.
Whoa! $2.9T is a lot any way you slice it. But to Bush’s credit, it was spread over 8 years, including all of the 911 and war crap. The Obama administration is a runaway train and the boiler fire is being stoked by pallets full of money. 20 months?!!! $3.2 trillion?!! Ok, so now take the money in the picture, multiply it by 1 thousand, then multiply that by 3.2. It may just be my limited imagination, but I’m having a hard time even picturing the image of 1 thousand times what is in the graphic. Was this really the kind of change that we were looking for?
Ok, we all know that Karl Rove is not the most neutral guy out there. But his comments today in the WSJ article, entitled “Presidential Bait-and-Switch,” were for the most part, spot on. Rove points out the fact the Obama’s victory was based largely on his promise to implement “change.” Granted, it has not been very long, since the new president has been in office. But, Rove points out two very large areas where Obama has only given us more of the same. If the economy and fiscal policy of the federal government was not such a prima facie issue right now, no one would probably even care. Unfortunately for Obama, fiscal policy is under extreme scrutiny, and is the forum that he needs to use, to make good on all of his promises of “change.” The two huge discrepancies in what Obama promised versus what he is giving us are, Obama’s measures that have increased (instead of the promised decreasing of) the deficit, and Obama’s failure to reform earmarking practices. Rove observes:
Mr. Obama didn’t run promising larger deficits — but now is offering record-setting ones. He’ll add $4.9 trillion before his term ends and $7.4 trillion if given a second, doubling the national debt in five years and tripling it in 10. Mr. Obama’s deficits will be much larger than he admits because he relies on rosy economic assumptions and gimmicks that mask spending and debt (like assuming popular new programs he supports won’t be renewed).
Nor did Mr. Obama run promising more earmarks. Instead, he said he’d reform the earmark culture and “scour the federal budget, line by line, and make meaningful cuts.” Now he wants to wave through a $410 billion omnibus spending bill with about 8,500 earmarks. This is on top of the $787 billion stimulus bill signed into law two weeks ago.
Obama justifies it by blaming it on the previous administration, calling it “last year’s business.” I’m sorry Obama, I’m not buying it. The follies of the Bush administration are not preventing you from making good on your promise to curb earmarking. If you are going to try to legislate the economy, at least do it in the way that you promised you would.
I’m really seeing the fruits of that hard fought stimulus package, right about now. Or maybe this is just a reaction to Oscars, Hahahah. Wouldn’t it be awesome if bankers had a Wall Street equivalent of Hollywood’s Oscars? All of the Wall Street players could have a big televised party where they get together, blow smoke up each other’s arses and give each other awards on TV. Don’t forget to mix in some extremely biased political views during the award speeches. Why not? I feel like Bernie Madoff and John Thain are probably as notorious as Sean Penn, these days.
For the love of all that is good and holy, I hope so. It always amazes me how cyclical the global markets are. The Japanese indices had gains, we have gains. Sometimes I can’t help but think of a dog chasing it’s tail.
Update: 4:15 P.M.– aaaannnnd, we are (barely) back above 8000.
Former Governor of MA, and GOP figure in the recent election, submitted an OP Ed piece for the NY Times this week. The article addressed the floundering domestic automotive industry. Romney is a self made independently wealthy individual (Bain Capital) whose father was a Auto industry mogul before becoming a political in Michigan. You would think that these things would qualify Romney to speak on the topic of solving the problems of domestic auto producers. Indeed, Romney is qualified. But Romney’s article “let Detroit go bankrupt” does not delve into any sort of complex strategy based on his expertise as a Private Equity genius. Instead, Romney merely asserts that decisions should be made using common sense. Hmmm, imagine that. Romney astutely points out that “Getting more and more pay for less and less work is a dead-end street.” Romney also suggests that bailing out the floundering auto makers will only prolong the inevitable. I couldn’t agree more.
It looks like all the market needed was a little Columbus day luck. Call it Money Monday. Shortly after 4:00 PM today the DJIA is almost +700. Could it have something to do with the fact that today is a bank holiday?
Cue, dive bomber sound effect. the Dow has now dropped almost 7 points and continues in the same trend. We still have 3 hours before the market closes. Any bets on if the margin of loss will be as big as last Monday?
Monday, the media blamed the 7 point drop in the DJIA on the House’s rejection of the bailout plan. Tuesday, the media said that the DJIA was rallying because of speculation that a new version of the bailout plan would pass, in the Senate. Well, the Senate passed the bailout plan last night, and the DJIA is down over 3 points today. Why aren’t there any headlines linking the drop to the bill? Has that direct connection between the bill and the Dow mysteriously evaporated over night? Oh wait, maybe the drop in the Dow today is a direct result of investors’ anticipation of the vice presidential debate tonight. Is that it? So, why has the media focused so much energy on promoting the bailout plan, even to the extent of making total bogus extrapolations as scare tactics? No one is even arguing with the fact that the vast majority of individuals who have voiced their opinions to elected officials, have been opposed to the bill. Yet the media is still trying to convince everyone that the United States, followed by the world economy, is suddenly going to implode into a great depression if the Federal Government doesn’t step in NOW! Is the media some how convinced that the bill really is what people need (even if the people don’t want it)? Is there some sort of kickback for mass media, buried in the revised bill? Just as skeptics of the bill predicted, the market is doing what the market was going to do, regardless of any measure being passed by congress. If the media was telling the truth about the DJIA reflecting the faith of investors, in lieu of the contemplated bailout bill, shouldn’t the DJIA have soared today, after a victory in the Senate? What a total load of crap. Not only will the market continue to do exactly what it was going to do anyway (most likely continue to experience a decline), but if the House approves it, each American (not just taxpayers) will have another $22,000 each, as their portion of the federal debt.
For the love of all that is good and holy, I hope so. It always amazes me how cyclical the global markets are. The Japanese indices had gains, we have gains. Sometimes I can’t help but think of a dog chasing it’s tail.
Former Governor of MA, and GOP figure in the recent election, submitted an 
