Stock Market Rises Due to Obama’s Treasury Pick?

Sunday, November 23rd, 2008 at 12:01 am

Stock Market Rises On Geithner Pick

One Friday morning, the stock market was again headed downward. Shortly after Timothy Geithner was leaked as President-elect Barack Obama’s probable pick for the Secretary of Treasury cabinet post, the stock market made a strong rally.

Did this leak affect the stock market in a positive way? Probably, yes. It probably contributed to Friday’s rally. Does this mean the problems are over? No freaking way. i don’t know where or why people keep acting like this is going to turn around quickly. Nothing supports that idea. We are now in a period of deflation which signals the deepening of a recession.

The problems have yet to hit us. Things are going to get much worse for the average American before they get better. Things are going to change. The auto industry is going to change, one way or the other, it is going to change. The economy is going to change, in ways we don’t yet know. I think it will be further away from growth in the manufacturing sector. Other countries can do it cheaper and the only way we can change that is with protectionism and that’s just not good for the US consumer over all.

There will be more government spending, that is a long established way to get out of a recession. Known as Keynesian economics. One problem though is a war and one will continue. So we’ve already got a large deficit and deficit spending is one way to bring an end to a deflationary and slow or negative growth period. Go to far with it and you end up with inflation and sometimes nothing makes sense. In the late 70′s, the USA had stagflation, where there was tremendous inflation and slow growth at the same time.

While Geithner appears to be a positive choice, it will not fix the problem. Obama’s plans will likely help but it isn’t going to turn around over night. Obama really can’t walk on water.

This is going to take time, some say it wont be resolved before the end of Obama’s first term.

Bestselling Products Marketing Books on Amazon

	Engagement Marketing: How Small Business Wins in a Socially Connected World	$16.30
	The Live Sassy Formula: Make Big Money and a Big Difference Doing What You Love!	$14.43
	The Innovator's Dilemma: The Revolutionary Book That Will Change the Way You Do Business	$11.85
	The Tipping Point: How Little Things Can Make a Big Difference	$10.87