We noted earlier how Wall Street has decided to shift its financial support from the President to Mitt Romney. Based on the recently released Federal Reserve Survey of Consumer Finances you have to wonder why.
According to this Federal Reserve Survey the bulk of the drop in household financial income occurred in 2008. Household income has increased every year Obama has been in office. Corporate profits are at record levels, higher than they were before the recession. Mutual funds have increased 65% since Obama took office, reaching their highest levels on record. Deposits are up 7%, and the DOW industrial Average is up 56% since January 20, 2009…the day Obama was inaugurated. Unemployment has dropped from 10.1% to 8.2% and the country has seen 27 straight months of job growth. While we still have a long way to go; the economy IS recovering albeit slowly.
Piqued by the President’s criticism of their exorbitant compensation packages and golden parachutes in the middle an economic meltdown they have turned away from the President and embraced a candidate that “understands how business works.” From where we sit they have bought into a lie. They act as if understanding business is somehow like brain surgery or landing a man on the moon. In fact it is not all that complicated. But we digress…
Bombarded by millions of dollars of ads spewing falsehoods about the country’s economic plight, Wall Street moguls have embraced a guy who thinks you run the White House like you run a corporate board room. They believe that the country is in peril solely because the President is “not one of them” and “has no idea how business works.” Anyone who looks at these numbers can see that this President does in fact have a grasp on the business end of the job and has implemented policies that are in point of fact, working. When Republicans run their ads and talking points to the contrary; they are simply lying for political gain.
Wall Street has taken a big gulp of Republican $$$ Kool-Aid. Through their profit induced haze they hear Romney speaking the same robotic profit first language they do. They follow the same path as Romney; using other people’s money to make risky bets for leverage and profit. Romney looks presidential. Nice hair. Good teeth. Right pedigree…belongs to the right clubs…says all the right “corporate” things.
They are smitten and so they have placed their bet on the Republican horse. But they have misinterpreted the information on the racing form. His record at Bain does not qualify him to run in this race. His prelim in Massachusetts was in fact a failure. Yet, so overcome are they by the prospects of this slick new thoroughbred that they have forgotten how well they have done riding their old favorite to the winners circle.No problem. It’s really only a game for them. Wall Street is used to making risky bets. They always come out a winner no matter who wins the race.