Today's Obama Economy May Be Worse Than Great Depression

Several economists are starting to see that Obama inherited a bad situation and made it much, much worse.

Stop the idiot Peter DeFazio! (Congress to tax every stock market trade??)

Rep. Peter DeFazio (D-Ore.) has proposed H.R. 1068, a bill that would impose a 0.25 percent transaction tax on trading stocks, options and futures. The move would kill trading, folks.

If you want our markets to remain the most liquid on the planet, then you need to oppose this nutjob. If you want to turn our markets into the same illiquid CDOs and CMO markets that have crushed 99 percent of the banks and financial institutions in the United States, then by all means support this idiotic legislation.

To oppose it, follow this link: http://tinyurl.com/c9lawe

Dow May Hit 4,000

Louise Yamada is widely regarded as one of the top technical analysts in the business. She was a Managing Director and Head of Technical Research for Smith Barney and was the top-ranked market technician in 2001, 2002, 2003 and 2004.

In November, Louise stressed the importance of the Dow Jones holding the 2002 lows and warned of much deeper selling should those levels be violated. Both the Dow and S&P 500 have since taken out the old 2002 low and Louise was on CNBC today. “Now that the 2002 lows have given way we have further to go,” she says. “The first targets are 6,000 in the Dow and 600 in the S&P and the second target, I hate to say it, could be 4,000 and 400.”

Did Obama Cause the Stock Slide?

Wall Street has soured on the new Administration's policy moves. Can this relationship be saved?

Citigroup's stock price breaks a buck

Good thing the NY Stock Exchange recently relaxed that minimum $1 a share trading requirement: It seems almost inconceivable, but Citigroup is trading around one thin buck. In today's market carnage, it traded as low as $0.97 before closing at $1.02.

Dow Industrials 1982 - 2009

Technically, 7,470 in the DJIA (Dow Jones Industrial Average) is the 50% retracement level of the entire bull market that began in August 1982. The previous bear market bottom was on Oct 9, 2002 when the DOW was at 7,286. We’ve gone below that level and at 7,100, we not only cut in half the October 2007 highs of 14,198.50, but we have given back 50% of the 27 year move from the start of the big bull market of the 1980s to yesterday.
If you invested in 1982 and just bought and held securities, then you’ve lost 50% of the gains that you had for retirement during that time. And at the current level (Tuesday’s close) of 6,726.02, there is no support for a long ways.
The market still has a way to go until we reach the single digit PE ratios that usually happen at the end of a bear market. John Williams, the economists who writes the Shadow Stats newsletter, thinks that the DOW could fall another 70% from these levels. He might be right but that will probably be in the third downleg of this secular bear market

Cramer Responds to WH Press Secretary Gibbs

White House Press Secretary Robert Gibbs jumped on CNBC host Jim Cramer yesterday for his analysis of the economic situation. Later in the day Jim Cramer responded to the White House attacks:

Obama Administration has decided to spend their way out of this recession:

Cramer on Obama: ‘It’s Amateur Hour at Our Darkest Moment’