Democrats Own the Stock Market Crash

The GOP presented many specific opportunities to Dems for a timely budget agreement.  Dems signed none, and presented none of their own.  And you're the loser.  The stock market is in free fall, theoretically because even though a "deal" was reached in time to prevent a "default," S&P declared concern that it took until the eleventh hour to get the agreement and resolve the stalemate.

Now, I am one who happens to think S&P's downgrade is a bunch of garbage.  I can't believe for one minute that any of the S&P staff would prefer to loan their own personal money to France instead of the US.  Nor would the US have defaulted on the debt.  Portions of government would have shut down until an agreement was reached, but a default would not have happened.  Even Obama wouldn't have allowed that.

Nevertheless, if we can believe S&P about the reason for the downgrade, then who is to blame (or should I say most to blame) for the failure of a timely agreement?

Dems.  No question about it.  Allow me to present a timeline.

January 2009

President Obama takes office.  Democrats control the House, the Senate, and the presidency.  Not only that, but they have 60 members in the Senate -- filibuster-proof.  They can do anything they want (as evidenced by the notorious health-care bill), but for two years they do nothing about the debt ceiling and the budget.  Zip, zero, nada.  No proposals.  No discussions.  Why?  Because even the Dems know they cannot go on spending and raising the deficit and debt like they had been doing.  And, being the cowards they are, they kick the can so far down the road that GM's electric cars don't have enough juice to retrieve it.  Fortunately, some GOP members still believe in gas-powered cars and get the can to bring it back to the Congress.

That, of course, is the Democrats' plan: Don't cut anything.  Eventually, the GOP will gain control of something and will want cuts.  And when they do, we attack.  If they want a $1T cut in Medicare, we stomp our feet and scream and yell that they are sticking it to the "poor" in favor of the rich and get it reduced to $500B.  That way, we get the cuts we need, we don't get Greeced, and the GOP will be the bad guys.

Fact: If the Dems had resolved this problem during this time when they had complete control, there would have been no S&P downgrade and your stock portfolio would not have crashed.

January 2010

Paul Ryan reveals "A Roadmap for America's Future."  This is, of course, attacked by Dems straightaway.  No agreement here.

Fact: If the Dems had signed on to this proposal at this time, your stock portfolio would not have crashed from the S&P downgrade.  Meanwhile, no Democratic plan.

April 2011 

The House Republicans pass Budget Chairman Paul Ryan's 2012 "Path to Prosperity" budget resolution.  This is soundly rejected by Democrats in the Senate.

Fact: If the Dems had signed on to this proposal at this time, your stock portfolio would not have crashed from the S&P downgrade.  Meanwhile, no Democratic plan.

So, according to S&P's reasoning as to why our AAA rating went down, by the time (at last!) the Reid and Boehner plans were stirred together and voted down by both parties, it was too late.

As evidenced, the Dems had many opportunities to save your portfolio, but failed.  Republicans presented specific, viable plans to the Dems, but the Dems ignored them.  Conversely, the Dems presented nothing specific to the GOP for approval.

Oh -- speeches by the president?  You can't vote on Obama's speeches and political rhetoric.  You can't borrow money on Obama's speeches.  And, CBO Director Doug Elmendorf, when questioned by Paul Ryan about President Obama's "proposal," stated, "No, Mr. Chairman.  We don't estimate speeches."

But, you say you didn't like any of the Republican plans?

Well, two points about that.  First, that's irrelevant in terms of the issue about your stock portfolio crashing.  Had one been signed, your portfolio would be intact.  Indisputable.  So, blame the GOP for whatever you will, but don't blame them for your stock portfolio's decline. 

Second, you should like the GOP plans, which are certainly better than what we got.  For example, the Ryan plan requiring Medicare recipients to pay a portion of their health-care costs is the single most effective way to bring Medicare costs down.  Experts say even a $10 copay for Medicare would deter people from making unnecessary trips to the doc and would save billions of dollars, reducing premiums.  Let's see: lower health care costs, smaller federal budget, businesses prosper and hire more people.  What would that do for the business climate, and, therefore, your portfolio?  Dems don't like it because they say it hurts poor people who can't afford anything.  Maybe, maybe not.  I have no doubt, however, that benevolent private entities, churches, and charities would step up and fill the void for the small number of people who truly need help and cannot pay.  And, regardless, your stock portfolio suffers because of the Dems' contrarian viewpoint.

So, when drowning in your beer or just drinking your morning coffee and you get a glimpse of how much your portfolio is not worth, and you are canceling your room addition for lack of funds, or driving to Vegas instead of taking that cruise, you know whom to blame.

How much has this Democratic fiasco cost you?  How's your IRA looking?

Don't blame me.  I'm just the messenger.