While this is an important question, a better question should focus on enemies of the Dow Average maintaining the 10,000 mark reached yesterday after a terrifying market free fall. So, these three career politicians represent just three very dangerous threats to continued economic and financial recovery.
If there is one person who bears responsibility for the mortgage meltdown, it is clearly Barney Frank. Not convinced? You can watch this C-Span video from 2003 when he tells his colleagues in congress that there is not a significant problem with Fannie or Freddie, or its lending policies. Turns out he was completely wrong.
This man and his failed economic policies are a very serious danger to our economic system and a healthy investment environment.
This member of the house financial services Committee (D- Massachusetts) has decided that a new tax on all financial transactions will be a great way to support new government give aways. So, every time you buy a mutual fund or stock in your IRA, 401k, college fund or investment account, your government will take “a small piece” of that transaction. The Economic Policy Institute estimates that will suck up to $150 Billion a year from American investment accounts.
Career politicians do not seem to grasp well that in the real world, additional costs typically lead to lower incentives to buy. Lower demand leads to lower economic results and lower market results.
Our economy, our markets, even the “American Way” is predicated on hard work, risk taking and the ability to take advantage of opportunities presented by a vibrant economy. Regardless, President Obama suggested yesterday that we spend $13 Billion dollars (which we do not have), so we can give those on Social Security and extra $250.
Because 1) he’s a career politician and 2) because stagnate prices will otherwise prevent Social Security from increasing benefits over last year. You heard correctly, our President wants to spend $13 Billion dollars so people who are not working can get a raise during the worst economic environment in a generation. Are raises now guaranteed?
These are just 3 of the dangers to our continued economic and markets recovery and there are surely others, who can you name?