Claim credit for Obama for the DOW rising a bit today, and he’ll have to accept responsibility when it plunges later.

Our markets have only guaranteed themselves bigger eventual plunges by successfully avoiding accountability to date. They have so far managed to privatize the profit and socialize the risk, but that can’t continue indefinitely. Even if they could get the taxpayer to play their fools forever, they have already run up losses in excess of what the taxpayer will ever be able to repay, and certainly will never be able to repay when the added burdens of the future bailouts that not facing the music now will let them continue to generate until they are stopped. Our international creditors will not prove so endlessly foregiving, and they will eventually end the hayride. Our markets, based as they are on confidence, will evaporate in the bonfire of that confidence.

While Obama will bear legitimately share some of the responsibility for that day, because he is enabling and facilitating the banksters, it is not mostly his fault. Let’s not tie his reputation to the valuations of fundamentally fraudulent markets.

It’s just going up too fast at the moment.

70 day CMBs, $30 billion (tomorrow)
13 week Bills, $32 billion (July 27th)
26 week Bills, $31 billion (July 27th)
52 week Bills, $27 billion (July 28th)
2 year Notes, $42 billion (July 28th)
5 year Notes, $39 billion (July 29th)
7 year Notes, $28 billion (July 30th)
19 year, 6 month TIPS (reopened), $6 billion (July 27th)

Two hundred thirty-five billion dollars in a single week?

That’s 12 trillion bucks of debt in a year…..who’s gonna be buying all of it and what does it tell you about the flaming bag of poo that the Bushies left on our doorstep??

And whether you want to play THAT game, depends on how well people feel about their possibilities in winning OTHER games..and how much money they have to invest. Clearly an increasing DOW suggests that there is, somehow, still money to be invested in the economy. Someone has money to spend (where did this $$$ come from, and who is investing it? Could it be that this is the result of the tougher enforcement of off-shore investment accounts? The bank bailouts? ). As well, those investors need to put that money somewhere, and the other options aren’t looking as lucrative. That might mean that those other options are really, really bleak. Resolving the health care issue would help many companies in an area of major cost for them, on the other hand many of the DJIA industries ARE involved in Insurance, Pharma, Hospitals, etc. Are those losing value?

Nevertheless, providing this isn’t a “bubble”, it’s good for those people who live on their 40lK’s, pension plans, and many public agencies that invested heavily in the market before the Bush crash.

Of course not, they probably don’t want to be called retarded.

Correlation does not equal causation. I’ve seen right wing pundits say his performance was so bad (it was even criticized by the NYT) that universal health care probably won’t happen now, and that’s why the DOW is up.

It probably had more to do with Ford Motor Co. releasing second quarter profits of 2.3 billion and Hershey and Phillip Morris International Inc releasing forecasts higher than expected.

When you only follow politics it can scew your analysis of things you don’t know well, like the DJIA. Makes you look kind of stupid IMO.

So far thorough the stupendous increases in Fed and world Central Banks balance sheet expansions, money creation, and government borrowing the stock market has the liquidity available to rise. There has been very little of that money and credit go into the real transaction economy. Stay tuned.