Kudlow: Obama's War on Investors, Capitalism

Please! Time for a Democratic Revolt!

Every time Obama or one of his "Obamacrats" opens their mouth,

things get worse. I knew it would be bad if the election went this way but I had no idea how bad, how fast. Everyone check the Sat front page spending graph on USA TODAY? Obama is mortgaging OUR future as a NATION on some BS college "experiment" in Obamanism. There must be a backlash from the Democratic voters to their Congressmen and Senators to show their disapproval if the US is to survive as a Free Nation.

Simplest terms: Times are tight in your own household.

What is the responsible thing to do? Spend smarter on the necessities. Cut OUT the unnecessary expenses and PAY DOWN YOUR DEBTS.

What is Obama/Pelosi doing? Is this responsible?

Ask yourself and call your Representatives!

Chris Petty of GA @ Feb 28, 2009 19:42:26 PM

Mr Rod

1) calling an argument "specious" does not make it "specious" as for your other point I honestly do not see the connection. I repeat cap gains are being returned to 20% which 5% (or actually 20%) below the pre 2001 rate. Why this should tramuatize investor (I am one btw) is beyond me.

2) re the IRA etc., to my knowledge Obama is not proposing anyting to diminish those plans in fact he is using a "nudge" to make 401K withholding the default choice instead of the default being no witholding

3)am well aware of the fwd looking component of the mkt, but nothing Obama is proposing is new. He campaigned on the cap gain/the expiration of the Bush tax cut for wealthy etc. To argue that the mkt is down 26% because of Obama is shaky given all of the other variables in play (e.g. cratering earnings, growing credit problems, the shattering of international trade and demand etc.). I believe the mkt is still overvalued (earnings etc.), an argument could be made only the Obama effect is keeping it at this level.

4) Obama and Geithner if anything are being criticized for coddling the bankers, some Republicans have appeared more comfortable with nationalization than Obama. I agree whining about bankers is not the answer.

5)Health care has attributes very different from cell phones and most other products. One cannot (and should not) go the corner and ask for bids treating a heart attack. This is gets complicated quickly but needless to say transaction costs, asymmetrical information etc. complicate matters. And remember your health cost is someone else's revenue/profit which means vested interests including many in the private sector will fight like heck to protect their profits.

6) the Gallup poll to which I refer is this one which shows Obama's approval spiking back up with Republicans post his address Tuesday (Mr. Peth had run a gleeful post the other day pre speech with the one you cited).

http://www.gallup.com/poll/116224/Obama-Approval-Rating-Increases.aspx

Regardless thx for the dialogue, we may differ but dialogue beats the BLAH!!! he is a commie stuff.

thx.

concerned reader of pethmeth of IL @ Feb 28, 2009 19:11:26 PM

concerned reader of pethmeth

Here are a few things to consider about your arguments:

A) why is a cap gains rate 5% BELOW pre 2001 "war on investors"?

A specious argument. Pick one thing and apply it to the entire universe. Like saying, hey my local bank is fine, so where's the banking crisis?

B) where is Obama ending 401K/IRA tax preferences?

You're right.

C) u can blame the stock market on Obama but why?

Yes. The stock market is forward-looking. It's down 26% since Obama took office because it is pricing in the effects of his economic decisions, which are all bad.

D) What is your bank plan?

Well, a good start would be for Obama to stop attacking the banks and the bankers. For this crisis to be solved, everyone is going to have to work together. To keep villianizing the banks only delays the recovery.

E) How do u propose containing health care cots?

Get government out of the health care market. There is no incentive for drug companies, hospitals and doctors to cut costs when government policies create just the opposite effect, an incentive to raise prices. Why do you think the prices of cell phones and laptops keep dropping due while innovation keeps rising? Because government isn't selling cell phones and laptops. If they were, those items would be unaffordable.

"I direct your attention to the latest Gallup which contradicts the premise of your post."

Is this the one you mean? The one that shows his popularity dropping steadily since he's taken office and his disapproval rating doubling? That Gallup poll?

http://www.gallup.com/poll/116026/Assessing-Obama-Job-Approval-One-Month-Mark.aspx

Rod Jr. of IL @ Feb 28, 2009 14:01:25 PM

Obama taxing the "rich"

i have fought my whole life to build a small business. What started with one person now has seven. I offer good paying jobs, and consider myself an entrepeneur. I earn $325,000 a year. While many would say that is rich, consider that i have three children in college (over $100,000 year in tuition). I drive an old car and live a modest life. Now all that i have fought for is under assault by the President. Why should i pay the same rate for taxes earning $325,000 as someone earning $325 million dollars? Why should anyone, in these tough times, pay more taxes at all? Mr. President, i will be laying off one of my workers this year to prepare for your tax increases on me and my business of over $30,000 more a year. This is what you are doing - you are going to force people like me to decide between our families and our workers, and in this case, my family must come first. I will be adding one to your ranks of the unemployed.

Francis of CT @ Feb 28, 2009 13:02:15 PM

Bring this all to a Head

Nothing will change with Government overspending money until every citizen who has their taxes removed from their pay by their employer is forced to write a check once a month for that total that is removed for them. If every person received their entire pay each week and then had to sit down and personally WRITE a check to their government for $500.00 --$1000.00 or $2000.00 ...then there would be a real TEA PARTY. It is the old story..put a frog in a slowly heated pot of water and by the time the water boils it's too late for the frog. No one looks at their pay stubs to see just how much money their governments(fed, state, local) suck from them each week. Let them sit down and actually have to hand it over personally. That might be the real pain that would rectify this mess.

Gloria Alba of PA @ Feb 28, 2009 11:08:12 AM

Lack of focus on mark to market

Even Kudlow the great lacks focus on this total mistake which is causing a great deal of the write downs and true calamity we are facing. At least he should be pounding the table as we all should. Mark to market is accounting at its worst. Most banks and corporations should value their assets on how they cash flow as opposed to how some other bank sells a similar asset under the hammer (a desperate seller). It reminds me of years back when we were all worried about good will on balance sheets. I know of a company near bankruptcy with assets on their books which have been written down to cause that near backruptcy and the assets are cash flowing like clockwork. Total nonsense. Keep your eye on cash flow. Just like smart investors didn't worry about good will but watched the cash flow statement like a hawk.

If someone can give me a good reason for mark to market accounting I would like to hear it or read it. I feel like I am Alice in wonderland.

Here's a simple example ...you purchase a McDonalds franchise for 10M. The store has 1M is cooking equipment and real estate. So the BS has 9M in good will on the BS.

Yet the franchise throws off 3M in cash. What is the goodwill worth? Well it is worth

whatever you are willing to pay for the 3M cash flow stream. NOT what a failed store in a different location gets for its franchise.

Or am I missing something I am not an accountant (thank goodness) just an old CEO

who used corporate jets to extent my reach and handle problems dear Mr. President. It was a tool for me, maybe you ought to scrap Air Force 1. I am beginning to feel

the beginnings of real concern and I had such high hopes for you. JJ

nspart of NM @ Feb 28, 2009 10:13:53 AM

intentional

I agree with comment of nomorelies of AK. This is intentional. obama is sly, devient, and manipulative. He says things the public wants to hear, then does things so unthinkable. How is he "classified" as "fit" to run this government when he signs off on a bill he (or his dem dummies) didn't read or even have it presentable. School teachers wouldn't even have acknowledged such a sloppy mess. obama's on a mission, he wants us to beg on our hands and knees to "him" for some unknown warpped reason. This needs to be stopped so we can keep our freedom. Someone, anyone, do something to stop him and his two sidekicks. A Republican would be banned from gov't for this behavior.

Tom of NJ @ Feb 28, 2009 01:35:35 AM

Spending and Borrowing is the Road to Serfdom

Now this is a real speech. Ron Paul at CPAC. He might not be able to imitate the oratory style of MLK like Obama can but it's the content of his speeches that count:

http://cspanjunkie.org/?p=1965

TheSecondAmericanRevolution of CA @ Feb 27, 2009 21:51:12 PM