Wednesday, July 15, 2009

President Obama is the Economy

Trucking and rail ships over 90% of the goods in America. We know if transportation shipments are down 20%(confirmed by CSX and JBHT recent reports) we are making 20% fewer goods.

Recent reports reveal that imports and exports are down over 25%.

Further, technology leaders Intel and Dell both reported 20% revenue declines. We are seeing much larger declines from other technology companies.

Airline powerhouse American Airlines reported a 20% revenue decline.

Auto companies have seen sales contract 50% in the last few years.

New home builders, if they haven't shut down completely, have seen sales contract 80%.

Office rents are down 50% in just one year in New York.

Commercial vacancies are skyrocketing and values are crashing.

Total retail sales are down 10% year over year as retailers shut down across the nation.


Government drives massive revenues to Health Care, Technology, Defense Contractors, Drug Companies, Retailers, Manufacturers, Transportation, Food, and Fuel in addition to providing approximately 25,000,000 jobs directly and countless millions indirectly.

The only problem is that receipts to government are evaporating. The Federal Government alone is on track to spend almost $2 Trillion more than its receipts. $2 Trillion dollars is the difference between a 6% decline in GDP and a 20% decline in GDP.

If President Obama was not borrowing and spending trillions of dollars that government didn't have......revenues to Health Care, Technology and other industries would contract dramatically.

So next time you look at your stock portfolio, you should pause a second and thank your President for spending so much to keep the revenues flowing to your bottom line.

The only problem is who will keep financing a nation whose economy is driven primarily by government spending? And not just any economy, the largest economy in the world.

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