Let's look at the Dow Jones

In some ways what the Dow ill tell you is limited. But what it will tell you is trading on those industries that manufacture.

In January 2008 when Obama took office, the Dow sat at 13,000. A few months later his "Stimulus Package" forced the Dow down to 8579. When it became obvious to everyone that the Stimulus was going to do no good and Obama began bailing out the banks the down dropped to 6763. Now the Dow has recovered to 11,414 but posting continuous loses based on "poor jobs reports." I think that's crap.

The basic question is why has the Dow recovered 5000 points while the economy has floundered? The answer is easy and has to do with what makes up the Dow Jones Average and mostly has nothing to do with the weekly jobs report.

So, what is in the Dow Jones Average? Rail Roads which are a zero factor. The stock never changes and they haven't paid dividends in years. The rest of the Dow is made up of industrial manufacturing. There lies the problem. Companies like General Electric, Siemans, the U.S. Auto Makers, and so on do all their manufacturing outside the country, mainly in Asia. That means when GE makes a profit of $3 Billions last year their stock increased in value, but none of that manufacturing was done in this country. The laid off GE workers are still collecting unemployment while the big bosses are clipping coupons and collecting embarrassingly large salaries for screwing both their workers and the country.

Now with that said, why did the bottom fall out of the Dow when Obama spent $800 Billions on his Stimulus Package? Again this is an easy question to answer. The Obama Administration handed out Credit Cards worth more than 3/4 of a Trillion Dollars to American Cities, Counties and States earmarked for "infrastructure". So where is that money now? It's gone nowhere because you cannot spend it. Before you can hire a contractor to build a Bridge or a Freeway, you have to go through Environmental Studies and so on. This is a process that take 5 to 10 y ears. Sometimes the project cannot be built at all.

How has this affected the economies in Europe? Same thing. Obama's stimulus package did nothing for Europe. Bailing out the Deuche Bank did nothing. The Obama Administration's failure to stimulate the economy and create jobs in the U.S. has shown as a ripple effect all over western Europe because much of Europe is in much the same mess the U.S. is in - manufacturing has been relocated in Asia.

The Good News is, the Chinese are very happy with the Obama Stimulus. It made them extremely wealthy.