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Climbing the Wall of Worry and Political Uncertainty

Climbing the Wall of Worry and Political Uncertainty

The headlines have been dire for years. And yet the S&P 500 is up 65% with Obama as president. That's the biggest gain for any one-term president since the market rallied under Eisenhower from 1953 thru August 1956. And Wall Street donations to the Obama campaign and to democrats in general have fallen off.

The New York Post today quotes a hedge fund manager as saying, “Within the banking industry, Obama has made people an enormous amount of money and they seem to have forgotten that.”

I cringe at such comments, providing credit to politicians for the success of corporate entities and their employees. Sure, the banks were saved. But I am sorry. Governments do not create wealth and simply cannot control a sector much less an economy. Sure, politicians can mess up private industry with needless laws, restrictive regulations and confiscatory taxation. Still, the economy is the sum of tens of millions of people pursuing their own (rational?) self interest. Obama and his cronies merely confiscate wealth of the private sector and then redistribute it. Governments don't create wealth; governments seize it.  

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