Over the last few weeks we have seen how confident the market and the people really feels about Mr. Obama's skills to lead the country towards an economic recovery. The economic indicators get worse by the day, more unemployment, GDP goes down farther than expected, financial institutions keep going deeper and deeper in debt. Recently we have also seen that the dollar seems relatively strong, the key word is relaitevly, the dollar is not strong, what is happening is that other currencies are getting even weaker. Just look at gold, gold keeps steady and even going up despite the dollar. If the dollar was perceived as a strong currency, gold would be declining as the dollar advances. That has not been the case, the main reason is that the Euro is not doing great, we have the eastern European countries about to go under water, and western europe refuses to put the money to bail them out. This economic crisis is showing more signs of strain in the European Community, at the end of the day, investors are not feeling as though the Euro will survive in the long term, there are too many economies riding on the European Centra Banks decisions, and what is good for Germany, may not be good for Estonia. Interest rates are set in unison throughout Europe and that may not be the best policy for all of the ountries that form the European Union.
To be fair with Mr. Obama, I'm not dure that McCain would have done better, we are lving unique times and who knows how the market would have reacted to McCain's policies, but I'm pretty sure we would not be worse. Now Obama wants to cut the deficit by 1/2 and yet keep spending on the stimulus package to save the US, I'm curious to see how he accomplishes this. One thing is that he wants to tax the rich, problem is that the rich are the ones that generate jobs in the US, and what I see is that so far they are no liking what they see. Good Luck President Obama! You wanted to be the President, now you pay the price!
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