"If I had only followed CNBC's advice, I'd have a million dollars today provided I'd started with $100 million." Jon Stewart, The Daily Show
When I attended college, I received a scholarship to travel to Spain with the Experiment in International Living. I lived with a Spanish family and learned about Spanish culture or Spanish women as some have suggested. We were advised to find a gift that would be appropriate to give our new family – something that would be representative of the United States. I purchased a set of proof coins from the United States Mint. It was perfect. Proof coins are different from uncirculated coins in that they are made for collectors, and only a limited quantity are made each year. It demonstrated that I put some thought into what I wanted to give, and I wanted to make sure it truly represented the United States.
It is tradition when a new president meets a chief of state gifts are exchanged. Makes sense – right? I guess it all depends on what you give. What does Barack Obama give the Prime Minister of Britain Gordon Brown - a box of 25 DVDs which include ET, the Wizard of Oz and Star Wars, DVDs which you can buy for under $6.00 each at amazon.com. Star Wars is about $14.00. Total price of the DVD set about $160.00, but it is eligible for free super savers shipping. As Iain Martin of the U.K. writes, " "Oh give me strength, we do have television and DVD stores on this side of the atlantic." Oh, and Mr. President, Europe uses a different DVD format than the United States. When I visited the Reagan library, you can't help but notice all the gifts from the foreign dignitaries - each gift unique and representative of the specific country. Imagine if Barack Obama received this gift. Could you imagine seeing all the wonderful gifts from other chiefs of state at the opening of his presidential library, and then in the corner, a box of DVDs. One only has to wonder if this is the gift he gives our friends whom he apparently must disdain, what will he give President Mahmoud Ahmadinejead of Iran whom he admires?
Barack Obama on the stock market.
Gary weiss, a former senior writer of business week, wrote the following in his blog post, Obama needs to channel Richard Nixon.
What's missing is the kind of helpful nudge that came from none other than Richard Nixon in 1970, during the depths of what then seemed like a pretty deep recession. Nixon said: "Frankly, if I had any money, I'd be buying stocks right now." The market soared
Barack must have listened. A few hours later, Barack Obama said the following:
What you're now seeing is ... profit and earnings 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,"
Well, Mr president – what is a profit and earnings ratio? Anybody who has a modicum of intelligence regarding the stock market knows that the basic valuation metric for stocks is the price/earnings ratio not the profit/earnings ratio. A profit/earnings ratio is meaningless. There is no such ratio. How is that for giving confidence to the market? The market reacted - it fell. And, for Obama's long term horizon, I wouldn't invest any new money in the market until competence returns to the presidency. According to Bloomberg, The Dow Jones Industrial Average has fallen 20% since inauguration day, the fastest drop under a new president in 90 years surpassing Herbert Hoover and Jimmy Carter. The American people have hired the most incompetent president of all time. I said before the election that Barack Obama will go down as the worst president this country has ever known, and I believe that even more now. I was hoping I would be wrong.
Meanwhile, Retirees, Investors, and people of all stripes are seeing their life savings evaporate before their very eyes. I expected the market to fall, but not like this. The Wall Street Journal says that Obama's radicalism is killing the Dow. We have always heard about the buy and hold strategy for stocks – but what if that entails complete incompetence in the presidency. Do we still buy and hold? Barack Obama inherited a problem, that is for sure – but by his agenda, he has compounded the problem by his attempt in transforming our market economy to an economy that history has already proven does not work and during precarious economic times. Barack Obama is basically winging this presidency. As of this writing, the Dow is down another 104 points and sits at 6,489 down from 9,654, 3,165 points since the Nov. 4th election, a whopping 33%.I hope the American people wise up.