This bull market is just getting started, by Jack Bouroudjian. Obama’s failed version of capitalism:
In 2008, in the middle of the banking crisis, … something happened that wasn’t expected: Capitalism became the villain. As the entire free world was embracing American style free market capitalism, we here at home were turning our backs on it. The result was a birth of a new economic ideology, the Obama ideology…or what I like to call, ‘Liberal Economic Elitism’ (LEE).
LEE had taken the old notions of capitalism and turned them on its head. To paraphrase Dr. Milton Friedman’s analogy, “There are four ways of spending money, you can spend your money on yourself, you can spend money on someone else, you can use other people’s money to spend, and other people can spend other people’s money.” LEE is the ultimate use of ‘Other people spending other people’s money’, or as the Great Nobel Laureate would say, “…the most inefficient way to spend money!”
The experiment in LEE created a government which grew out of control, racking up debt (some of that debt due to the financial crisis and Bush tax cuts that Obama inherited) and experienced very little in the way of growth, leaving the economy in a real predicament. Even with record low interest rates coordinated by global central banks, the economic condition was not fertile enough to create the needed basis for real growth. The economy became over taxed, over regulated and had no real fiscal stimulus; which is essential.
The usual socialist problems under Obama. Now it is being overturned.
President-elect Trump has a different style and the market is starting to understand it. Whether it’s calling out a CEO or taking a call from Taiwan, everything seems to be more calculated than appears and the end result should be a ‘Reagan’ type presidency. Change will take time. Even under Reagan it wasn’t instant gratification.