Obama Does Not Want You to Make Money From Wall Street

Remember your 401k? It was supposed to help you retire. Remember being told to save your money and invest in companies and businesses and as they succeed you are able to profit alongside them? Stock investing. It used to be pretty cool. Still could be. But not until someone tells Obama to stop destroying Wall Street and your investment opportunities.

We already know that the government is basically nationalizing the banks. Call it what you will but when the government owns 40 percent of your bank you are essentially a government owned institution. Score one for the Socialists. Too bad for the common shareholders.

Then there is the little problem with the universal health care initiative. In one 24-hour period Obama has destroyed both the health care and insurance companies as investments. What investor has any interest in putting money into a non-profit organization?

Like Jim Cramer from Mad Money exclaimed:

He’s (Obama) changed the rules of Medicare, in a way that Human or United Health never even thought was possible…He’s crushing the margins of the healthcare insurance companies like Aetna and Cigna. He’s turning them into charities…

Think maybe the drug stocks are a place to invest? Think again. Reimbursements for the drugs could and probably will be cut as well.

Two months ago a sure bet to make money was to buy shares in companies that would benefit from from the spending plan with the infrastructure improvements. Problem is the spending plan wasn’t really about infrastructure like we thought it would be. Those investments are circling the bowl.

Want to try your hand investing in oil? It won’t stay at $40 a barrel forever. We all know this. The problem is when the price of oil goes up you know the Democrats are going to siphon off whatever profits they made as a windfall. Perhaps investing in non-American oil companies would be safer.

More from Cramer:

If I didn’t know any better, I would think that President Pelosi… uh, President Obama wants the stock market lower…

We’re in real trouble…We’re in real trouble between what’s happening in the world economy and our President… who seems to be taking his cues…from Lenin..

We’ve got to recognize… this is terrible market… one where any lift is a chance to lighten up, until Obama realizes that, well, many Americans actually own stocks… not just the Plutocrats. We have a new enemy… we voted for him… and, along with a dismal economy, he’s making these pieces of paper more dangerous by the day…

Jim Cramer is not a political guy really. He’s a market guy. He tries to make money whomever is in the White House. I think he’s even mentioned that he is a Democrat. To have a guy like him basically say to get your money out of the market for the next 4-5 years is pretty telling. He said:

Any money you may need for big outlays in the next 4.5 years should not be in equities.

Sarcastically Cramer remarked:

Now, I’ve been thinking… Because it’s kind of like my worst nightmare… I’ve been thinking… Can Obama come after toothpaste?… How about soda?… Will the man tax Crest?… Is Mountain Dew next?… Speed Stick deodorant?

Cramer says to protect your portfolio with the last remaining defensive stocks like consumer staples including Coca-Cola and Colgate-Palmolive, Gold, high dividend stocks like Verizon and AT&T and loads of cash sitting in CDs. He says that is the prudent thing:

…now that the Capitalists have moved to Beijing, and the communists inhabit Washington.

Yikes

chris on February 27, 2009 | Filed Under Headline

2 Comments

Clevelands Secret Club on February 28th, 2009

You got a problem with the President, then why don’t you tell him to let the banks and GM, etc go into bankruptcy. Heck, let every company fail.
Doesn’t matter that these companies have entwined themselves around the globe. Come on … give me a real solution or quit blowing smoke, Jim Cramer.

chris on February 28th, 2009

They are already doing a good job of failing by themselves.

Clearly you don’t watch his show as he offers solutions both to investors who are getting smashed in this market and to the government nitwits who are doing a poor job of everything with the exception of spending money we don’t have.

Here is just one of his many solutions that he has offered up to anyone who will listen (from his Feb 24 show…you must have missed it):

“We can get out of this mess… step 1, show the banks forbearance, give them the government notes they need in exchange for preferreds so that they can take the time they need to work out their problems on their own, we can’t do it… step 2, keep homeowners in their homes, have the government guarantee 4%, 40 year mortgages, and refinancing for everyone, you can cut the mortgage give the upside back to the government… drop at all costs… about nationalization… take what I call the Kremlin Solution off the table once and for all… now you know how exactly how my plan will save the financial system… we need the President to embrace rigor… save the best banks… keep people in their homes with mortgage reductions… and cool it with the glib academic nationalizers who have no plan beyond the seizure… once again, Communist style of our banking system.

Obama listen up! I’ve got a plan to get the US back on track & It’s not nationalization… First, let’s show the banks forbearance and provide them with net worth certificates Second, The government should guarantee 4% 40-year fixed mortgages & refinancing for everyone.”