Today, Obama had his first press conference as the President-Elect. During this time the market was in free fall as he talked about more bailouts for dried up, bureaucratic companies and more handouts or stimulus packages at the cost of the taxpayer. One sentence he uttered changed all of this however.
"I think that the plan that we've put forward is the right one, but obviously over the next several weeks and months, we're going to be continuing to take a look at the data and see what's taking place in the economy as a whole."As commented upon by CNBC news reporters, many hope that this means he will hold off on raising the capital gains, as well as other taxes, for a time. The mere hope that Obama might not raise taxes the second he steps in office not only reversed the direction of the market, but sent up the DOW to positive territory to close at +248.02 8943.81. Obviously, this show us a very proportional correlation between market direction and taxes,but it also lets us know what direction we are going in as a whole. Although people hope he will not raise the taxes, he most certainly will. Higher taxes on the wealthy was one of the key points of his agenda.
The Bush administration promised a smaller government, and instead what we got was a vast increase in government spending. These failures have been so great that we have been wallowing around in our own wasteful spending for quite some time.
So we have finally gotten "The Change We Need"
In other words, we have replaced our dirty diaper with a new one. Maybe what we really need is to grow up and start using the toilet.
Note: Copy of full speech transcript in comments.
