Fed to Investors: Economy So Bad, We Can’t Raise Rates 0.25%

When the Fed announced that rates will continue to be Zero, the stock market soared — for about an hour and then plunged.  Today down another 200+points.

Why?  Real simple — The Fed actually said that the world’s economy is so fragile that a meaningless rate increase of 0.25% was potentially a real problem.  And I’ll give them credit for being right about this — had the Fed raised rates, the Dow probably would have been down 500 points instantaneously.

Someone sent me this picture a couple of days back — and if a picture is worth 1,000 words, this one is probably what weighted on the Fed.
















This is downright depressing.  In the last 7 years, food stamp use has soared, as has the federal debt, the amount of money printed, student loans (which are future losses) and health insurance costs.  Obamacare reduces costs??  Really – don’t think so.

Obama’s Choice to Fix Healthcare — Tom Daschle

President elect Obama has named Tom Daschle as the next head of Health & Human Services (HHS), the agency that oversees Medicare. I was shocked by the choice and in talking with healthcare execs, there is a unanimous belief that this is a disaster for healthcare providers.

I think that any expectation that the Obama administration will move to the center is destroyed with this appointment. There are very few people in this world that I have a visceral reaction to hearing their name — and Tom Daschle is at the top of the list. I can’t think of anyone who is more partisan in his approach, more scorch the earth in his actions than former Senator Daschle. If a Republican proposes something – anything – the idea is horrible. If a Democrat proposes something – anything – the idea walks on water.

Senator Daschle joined Alston & Bird, an excellent international law firm, after leaving the Senate. Former Senator Bob Dole and former Medicare head Tom Scully are also with the firm. Prior to the election Alston & Bird sent out a mailer to clients with comments by both Senator Dole and Senator Daschle about the upcoming election.