TROUBLE BREWING ON THE STOCK MARKET?

The month of January saw higher-than-expected stock sales and a 3.5% drop on the Dow, although many major companies posted much higher-than-expected profits. The drop on the Dow was the largest since the middle of the bear market last year. "Consumers are struggling, unemployment is high and people aren't able to use their homes to raise money," says Dennis Delafield, co-manager of the $700 million Delafield Fund. "Growth will be moderate and investors are worried."

COMMENTS:

I’ve been warning of more problems to come for several months. I think the unemployment figures are now going to rise dramatically. Businessmen still are afraid to hire due to the uncertainties involved with an unresolved Health Care Plan and taxes. Retail sales have not shown a sustained increase that would put pressure on employers to hire. The number of houses that are about to enter the foreclosure process is horrendous. The banks obviously feel the same way, because they are still not lending.

TODAY’S QUERIES & ANSWERS:

Q. You’ve been quiet about the economy lately. Is that because the Recovery Act is actually stimulating the economy? (Krissy ~ Tuscaloosa, AL)
A. Gross domestic product is up and that certainly an indicator. But, too many other indicators are still bad, such as unemployment. The Obama cronies are ballyhooing about all of the new projects they have been attending ground-breaking ceremonies for, but 95% of those projects were already funded and would have been done anyway, except projects like the turtle tunnel in Florida.


Q. With the Democrats having control of both Houses and the Presidency, why didn’t they just go ahead and ram the health care plan through, as we all expected they would? (Steve ~ Alta Loma, CA)
A. Because they knew the public was ready to storm Washington and literally… I mean literally… throw them out. And under those circumstances, of course, they would never be able to return home, either. With Ted Kennedy already turning over in his grave, they figured they had better cut their losses.


Q. With the November elections just a few months away, who are the standout leaders in the Republican Party? (Clarissa ~ Philadelphia, PA)
A. Rush Limbaugh and Glenn Beck.

TODAY’S QUOTE:

“Did you know that the White House drug test is multiple choice?” ~ Rush Limbaugh

TODAY’S VIDEO:

http://www.youtube.com/watch?v=n0NYBTkE1yQ

THE OBAMA TERRORIST TRIALS - DAY 79: