Not only have Barack Obama and his socialist Democrat buddies managed to cut in half the largest economy this planet has ever seen in the span of a few months while stacking up record debt, but they’ve also succeeded in undermining the very foundations of that economy: belief that the American economy is fundamentally sound.
A quick memory refresher on the stock market since Obama wrapped up the Democrat nomination (June 2008) and became the assumed next President:
Before going on, let’s define consumer confidence. Wikipedia says this:
Consumer confidence is the degree of optimism that consumers feel about the overall state of the economy and their personal financial situation. How confident people feel about stability of their incomes determines their spending activity and therefore serves as one of the key indicators for the overall shape of the economy. In essence, if consumer confidence is higher, consumers are making more purchases, boosting the economic expansion. On the other hand, if confidence is lower, consumers tend to save more than they spend, prompting the contraction of the economy. A month-to-month diminishing trend in consumer confidence suggests that in the current state of the economy most consumers have a negative outlook on their ability to find and retain good jobs.
Basically, it’s a measure of how people feel about the economic situation in the country. You might think that what people feel about the economy shouldn’t matter, but the key is to understand that how people feel influences how they spend their money, and that does matter.
Now, take a look at consumer confidence under Obama’s watch:
Gateway Pundit has a blow-up of today’s record-setting decline, and some analysis:
We are now officially looking at a Barry Market:
Stock markets tanked today to pre-Bush levels.
Major stock market indexes fell to 1997 levels today.
Investors’ sagging confidence has pulled the major stock market indexes to their lowest levels in nearly 12 years.
The Standard & Poor’s 500 index fell to April 1997 levels Monday, while the Dow Jones industrial average reached its levels of October 1997 as investors succumbed to their growing worries about a recession that has no end in sight.
Most financial stocks were pounded even as government agencies led by the Treasury Department said they will launch a revamped bank rescue program that includes the option of increasing government ownership in financial institutions without having to pour more taxpayer money into them.
Also, the Rasmussen consumer index dropped to record lows today as well.
And all this has happened as a result of speculation on his plans and proposals. Just wait until those plans and proposals actually start taking effect…
The problem here, of course, is that the more concerned people get about the overall state of the economy, the more people will pull back their own spending. This, in turn, causes more losses by American businesses, leading to further job loss, declining profits, and bankruptcies. That contributes to even further lack of consumer confidence…and so on. It’s a self-fulfilling prophecy that will require some true leadership to break the cycle.
Obama inherited some nasty economic situations, but they were nothing unprecedented. In fact, they were very similar to what Reagan got in 1980 after beating out Carter. What did Reagan do? He cut taxes, and he spoke positively of the American spirit, the American people, and the better days in front of America. Unfortunately, Obama is raising taxes and speaking constant doom and horrors upon all things America, and pushing irrationally irresponsible spending bills into law while scolding Americans for not doing their part.
By the way, the stock market fell another 250 points today. Anyone wonder why? Hint hint…
There’s my two cents.