In January, regarding the American Recovery and Reinvestment Act, President Obama stated that “there is no disagreement that we need action by our government, a recovery plan that will help jumpstart the economy.” Over 300 economists, 3 Nobel Laureates, and many other prominent scholars signed a statement in opposition to the plan.
Political disinformation only goes so far in the digital age.
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Barack Obama is pushing Congress to accelerate fiscal stimulus legislation worth upwards of $775 billion in the first year.
This is the largest stimulus bill ever conceived, and will be targeted towards New Deal style “investments.” This includes massive infrastructure projects, green investments to include “weatherization” programs alternative energy development, and various protectionist subsidies.
With government growing to be the largest business in the country it pays to be on the right side of the trade.
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2008 was one of the best years on record for U.S. Treasury bonds. The ishares Lehman 20+ Year ETF-a good proxy for 30-Year Treasuries-gained 23% over the year. However, Treasuries seem to be winding down an unprecedented bull rally, with rates retracting from historical lows. The big question on traders’ minds is when the Treasury “bubble” will burst? It is still too early to tell, but TLT has taken a big dip over the last two trading sessions, down 4.55%. It should be noted that this occured over low volume holiday trading, but with general equity market volatility, as measured by the VIX, subsiding, this could be the start of a broader bond bust. [read more…]
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Barack Obama will influence markets more than any other president in history. America is on the cusp of insolvency, our economy is crumbling, and the federal government is printing money as fast as it can to keep the system from collapsing. Whether or not government attempts to “fix” the economy work, you can bet on an unprecedented redistribution of wealth over the next administration. [read more…]
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