March 4, 2009
The Emperor has no clues
"On the other hand, what you're now seeing is profit and earning ratios are starting to get to the point where buying stocks is a potentially good deal if you've got a long-term perspective on it."
It's price/earnings ratios. The "p" is for price. Price. Got it?
Holy cow. This is getting worse by the day. First off. Obama doesn't understand how the market works. It's a vote of confidence each and every day how things are going to be in the future. Not how things were yesterday. Or, even today.
During the campaign, Barak Obama famously displayed his dismaying ignorance of economics and the availability and utilization of capital when he was surprised to learn, during an ABC interview, that lower capital gains rates result in high federal revenues. (Even worse, was that this knowledge didn't change his mind about the desirability of lower capital gains tax rates--he still wanted higher rates because that would be "fairer." Even if it meant less tax revenue.)
Now, we learn that he doesn't even understand the most basic things about valuing equities. Worse, that he can't even remember what professors Geithner and Buffet and Volker are trying to teach him.