- Portfolio.com: Obama's total budget is $3.6 trillion, which works out at $34,000 per household; median household income is about $50,000. Which basically means that for every dollar that a US household earns, the US government plans to spend 68 cents next year.
- CNBC: [Obama] is declaring war on investors, entrepreneurs, small businesses, large corporations, and private-equity and venture-capital funds.
That is the meaning of his anti-growth tax-hike proposals, which make absolutely no sense at all — either for this recession or from the standpoint of expanding our economy’s long-run potential to grow.
Raising the marginal tax rate on successful earners, capital, dividends, and all the private funds is a function of Obama’s left-wing social vision, and a repudiation of his economic-recovery statements. Ditto for his sweeping government-planning-and-spending program, which will wind up raising federal outlays as a share of GDP to at least 30 percent, if not more, over the next 10 years.
The Bespoke Investment Group had a couple of graphics a few days ago detailing today's market action versus the market's correction from 1929 to 1954.
The fact that the economy shrank at a rate of 6.2% last quarter -- the worst showing in more than a quarter century -- sounds pretty awful. But here's another way to look at it. The last time GDP dropped so precipitously (back in the first quarter of 1982) the Dow went on to gain 25% in the next 12 months.Let's hope history repeats itself as it applies to GDP centered data.