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Are the President and the Market playing Chicken?
A Dangerous Game of Chicken: The President vs. the Market
March 5th, 2009 12:21 PM Eastern
By Mark Joseph
My stockbroker finally convinced me to get out of the market. I was hanging on to the old adage that what goes down must eventually come up. I still agree with that, but I think it could be a decade or more before recovery happens. Why? Because, stock novice that I am, it seems to me that Obama and the markets are playing a game of chicken.
How low must our passive-aggressive money men and women drive the market before our president gets the message?
In our passive-aggressive culture, few in finance seem to want to be straight with our new president like CNBC host Jim Cramer was the other day. Instead of telling him to his face that he is offering the wrong medicine to the patient, the markets have decided to send a passive-aggressive message to the President by pounding him day after day with a plunging stock market, hoping that he’ll get the message and change course.
The only question now is how low will the markets have go before Obama gets the message they are trying to send him? 5,000? 4,000? 3,500? My bet is the latter. At some point a rational person would think that the president would realize what’s going on and concede that this is not the time to increase the tax burden on anybody–rich or poor. How low must our passive-aggressive money men and women drive the market before our president gets the message?