Tuesday, April 26, 2011
President Obama today declared war on "big oil" by asking Congress to remove that industry's numerous tax credits. These tax credits which benefit the 98% of oil company shareholders who are middle income investors who have their shares tied up through retirement & mutual funds won't do anything to reduce the price of gas at the pump - they are, rather, incentives for that industry to become more accessible and productive. This is rather a brazen play to the environmental lobby to punish "fat cats" who, in actuality, are most of our seniors who have put their money in stocks. Obama went on to assert that he supported natural gas, though he seems not to understand that you have to drill for it (something most of these companies are involved in). The worst part of the whole ploy (a dynamic distraction from the debt debate) is that Speak Boehner ate it up.
Controversy will fly as Congressman Ryan's plan moves on, especially its proposed Medicare reductions. But something extremely bullish in terms of the markets are the lowered business taxes which could very well launch us right out of this recession. On the day, stocks are generally up. The financial world awaits to hear the Fed tomorrow give an unprecedented press conference, attempting to awe us just by show instead of awing us with substance. Meanwhile, the President does nothing to turn attention to debt ceiling debate.