Tuesday, March 03, 2009

Ah, That's What He's Been Up To!

As the DJIA has dropped 25% since January 2, half its total bear-market plunge, it might seem that investors have been giving Obama's stimulus, bailout and budget proposals a series of emphatic raspberries.

But no! Today the President revealed what he's up to.

He's been restoring P/E ratios to their proper level so that Americans can invest again. As quoted by ABC, the President said:

What you're now seeing is ... profit and earning ratios are starting to get to the point where buying stocks is a potentially good deal if you've got a long-term perspective on it.

Too bad that the long-term perspective is for higher corporate and individual taxes, including a tax on productivity disguised as carbon cap-and-trade. Incentives to take risks are tough to find in an Obama-led future that focuses on redistributing wealth instead of creating it.

After 9/11 Bush told us to shop. Now Obama is telling us to buy stocks. All we need now is Carter telling us to wear sweaters.

3 comments:

Anonymous said...

capitalism!

Anonymous said...

“What you’re now seeing is profit and earning ratios are starting to get to the point where buying stocks is a potentially good deal, if you’ve got a long-term perspective on it..”

huhhh???? P/E is price to earnings - Bush would have been hammered for this "misspeak" boondoggle - was there a "mission accomplished" banner in the background when he said this - anyone take a closer look?

just too much that could be said about that statement on a variety of levels....

Jon A. Alfred E. Michael J. Wile E. SWNID said...

Right you are, anon! A "profit and earning ratio" is by definition 1:1, unless there are no earnings.

The difference between a Bush malapropism and an Obama malapropism is that the latter sounds cool when he says something silly.