Market Psychology Under BO

One of the benefits of working as a doctor is coming across a wide selection of the workforce. This allows me to me to get a decent read of the economic activity of the local and national economy. I see realtors, factory workers, small business owners, Wall Street bankers, UPS workers, local bankers, day workers etc. I often ask them how business is going to get a feel of the general business climate.

This past week I saw a man who works for a fund that invests in real estate. He told me that they are not buying anything now and not expecting to in the foreseeable future. When I asked him why, he explained to me that his investors have been turned off by the current administration’s attitude towards the financial industry. I am sure if there was money to be made these people would find a way to invest but it is interesting how these psychological factors have affected their investment decisions and thus the economy.

The most critical group of people responsible for economic expansion are the entrepreneurs, the risk takers. They are the ones who establish new businesses and create jobs. For multiple reasons they are inactive including fear of federal regulations and taxes, fear of continued economic malaise, and fear of inflation due to overprinting of money by the fed. But most importantly they feel vilified by the current administration. They have been portrayed by the left as the source of all that is wrong and this had led them to respond by inactivity. This is their weapon by which they can respond to such attacks. The irony is that the administration needs these entrepreneurs to become active, to grow the economy, to produce jobs and generate tax revenues to support government expansion.

Market psychology is perhaps the most important factor when it comes to economic trends. As long as the sentiment remains that government is anti-business, the economy will continue to stagnate. The entrepreneurs must feel that the potential reward gained is worth the risk taken. BO thinks the government can replace the private market in expanding the economy. He also believes he can continue to drain private business to support his government expansion while vilifying the golden goose at the same time. Sadly this is only a recipe for further deterioration of the economy which then leads to more safety net expansion of the government. And the cycle continues downward.

BO Surfing TV

I was wondering when BO was at the end of his day, sitting on the couch in some room of the white house with a remote control flipping through the channels what he watches. I have a strange suspicion he lands on Fox news and watches Beck, O’Reilly and Hannity. One might think he would select NBC, CBS or MSNBC, which are outright supporters of his, but I do not think he goes there and I will explain why.

BO is a narcissist. He truly believes he has the answer to all of our problems and given time he can solve them all. This is why government will expand dramatically under his watch as he views it as the solution to our woes not the problem itself. He also believes he is smarter than all the presidents before him which is why he travels around the world apologizing for previous administration’s actions and decisions. Of course, he has the benefit of hindsight. By apologizing for previous policies he elevates himself personally at the expense of the previous decision makers and the historical record of the country. The apology confers the idea that if only he had been the president at that time, a better decision would have been made. It’s all about him.

As a narcissist BO cannot understand how people exist that do not agree with his policies. This probably eats him up inside and is eager to understand why there are dissenting opinions if he already has all the answers. This is why I think he is obsessed with Fox news, the main TV outlet for opposing opinions. He doesn’t care about MSNBC where they are all Kool Aid drinkers and cheerlead for him regardless. He dwells on those “crazies” who can actually disagree with him and he tries to comprehend why.

Fox news can thank BO for his loyal viewership. But he should not feel alone because as the ratings would indicate millions are tuning in to Fox over NBC, CBS, and MSNBC. He wishes it were for the same reasons.

Timing is Everything

It is now clear why it took so long for BO to come forward with his Afghan plan. Call me conspiratorial but I think he was waiting to use the issue as a way to deflect attention away from the health care argument. This administration is extremely calculating and as Rahm says never let a major issue go to waste, but use it to advance your agenda even if it involves a failing economy or sending kids to war.

The popularity of the health care plan was dropping on a weekly basis. The more people knew about it, the more they disliked it. They had to get this issue off the front pages and talk shows. They successfully deflected the attention of the media and the American public away from health care and onto the Afghan war.

The GOP has to be just as calculating and prepare for the Dems maneuvering. For example, the Dems are waiting to bring up the immigration issue to coincide with the next election cycle. They are well aware of the polarizing nature of this matter and the power of this issue to bring out the all important Hispanic vote. They are using immigration reform as a tool to manipulate the electorate and extend their power. The GOP must prepare the counter argument that will not alienate the Hispanic vote but attract the vote to the Republican side. They have plenty of time to come up with a platform that would appeal to the Hispanic voter.

They have to send a positive message to the Hispanics that they add a great deal to our nation and are critical to our future. Stay away from the often negative statements of illegality, deportations, and draining society’s resources. The vast majority of the Hispanics want their chance at the American dream not a replay of the socialist state that they escaped from and which the Dems are creating. This along with their high percentage of religious devotion should make them natural allies of the GOP.

The Republicans need to be just as cunning and manipulative as the Dems. They have to predict the timing of issues and plan their counterarguments. Most importantly they need to keep their messages positive. Negativity is not a recipe for success.