The major health insurance and provider stocks leaped upward on the open, as expected. (They just acquired 32 million new customers in the most ideal way: it’s now illegal not to buy their products.) They all came back down again on some initial profit-taking, and now they’re drifting back upward again.
Big Pharma stocks started strong and stayed strong. Devices are looking steady. Capital markets are steady, with notes and bonds somewhat higher.
There’s nothing wrong with state capitalism. As long as you’re in the right position to profit from it.
Moe Lane
Steve Maley
KnightsofMalta
Dan Spencer
Dan McLaughlin
When do the taxes on devices
youthgrunt (Diary) Monday, March 22nd at 11:28AM EST (link)kick in? I would guess that the timing of these taxes will mute the device industry response.
I used to think that market response was indicative of the value of elections or legislation. I now realize that it only applies to the largest of companies, but it may destroy everyone else.
How the Market REALLY Works
fideist Monday, March 22nd at 11:31AM EST (link)You are correct. People think the market rises and falls on good and bad news. That stopped happening decades ago. The market now rises and falls according to “confidence.” If investors are confident of what is going to happen, they invest. If there is uncertainty, they don’t.
The real reason the market rose today is
houstoneagle (Diary) Monday, March 22nd at 11:48AM EST (link)because investors know the backlash is coming in the wake of the HCR bill passage, making it that much more certain that the Republicans will grind the left-wing agenda of this President to a halt in 9 months.
“We preach the conservative gospel of individual liberty and choice and point out the only choice the Democrats want you to have is whether or not to kill a baby.”–Erick Erickson, D-Day 2010
On what basis do you make this claim?
Neil Stevens (Diary) Monday, March 22nd at 11:51AM EST (link)In theory it’s possible but are you just saying it based on how you feel?
RS contributing editor, technical administrator, and “a hardy variety of crabgrass.”
Read the RedState Posting Rules
Unlikely Voter: Poll Analysis, Election Projection.
“I rejoice that America has resisted.” – William Pitt, the Elder
Neil, conservative policies are friendlier to the market than socialist policies.
houstoneagle (Diary) Monday, March 22nd at 8:31PM EST (link)The conventional wisdom among conservative politicos (Fox News Sunday panelists, etc) of the health care debate has been that it is bad for the Democrats if the health care bill fails, but worse for their electoral prospects if it succeeds. The reason for that opinion, which I share, is that the American people will rise up against the corrupt process and the corrupt bargain that led to this high-taxing, job-killing socialist takeover of the arguably most important sixth of the American economy.
I share the opinion that Americans might have forgiven a less arrogant re-boot by the Democrats, but not this cram-down. The consensus is the Democrats are going to lose seats. The consensus among us conservatives is that the Democrats are going to get a THUMPIN in November now that this has passed. And the Democrats getting a thumpin means a big stop sign to Obama’s agenda and no more gavel for Pelosi.
The idea of a full stop to the funding of Obama’s agenda and the idea of Pelosi as minority leader instead of speaker must give new life to the capitalist, entrepeneurial spirit that fuels the markets. Additionally, you may recall the markets doing well a few weeks ago concurrent with when it looked as if the health care bill would never pass (Scott Brown aftermath).
Those are the bases on which I make my claim, Neil. What do you think?
“We preach the conservative gospel of individual liberty and choice and point out the only choice the Democrats want you to have is whether or not to kill a baby.”–Erick Erickson, D-Day 2010
I think you're forgetting something
Neil Stevens (Diary) Monday, March 22nd at 8:37PM EST (link)Big business has traditionally been more than happy to get in league with big government.
And Obamacare is GREAT for big insurance companies.
RS contributing editor, technical administrator, and “a hardy variety of crabgrass.”
Read the RedState Posting Rules
Unlikely Voter: Poll Analysis, Election Projection.
“I rejoice that America has resisted.” – William Pitt, the Elder
Crony capitalism
Jack_Savage (Diary) Monday, March 22nd at 8:42PM EST (link)We are seeing it in spades now.
As I have always said, something that is very close to the truth, but not really the truth, is sometimes far more sinister and evil that an outright lie. Something close to capitalism, but not capitalism, seems to me to be as disgusting as central planning.
"Capitalism"
Neil Stevens (Diary) Monday, March 22nd at 9:20PM EST (link)As an aside, I hate that word. Conservatives tend not to favor an ism, but just freedom of enterprise.
Anyway, the word you’re looking for is fascism: Where the state doesn’t necessarily own outright the means of production, but definitely controls it through a totalitarian intertwining of the private and the public.
RS contributing editor, technical administrator, and “a hardy variety of crabgrass.”
Read the RedState Posting Rules
Unlikely Voter: Poll Analysis, Election Projection.
“I rejoice that America has resisted.” – William Pitt, the Elder
Fabian Socialism
Jack_Savage (Diary) Monday, March 22nd at 9:59PM EST (link)…has been discussed here recently, and I am trying to find a flaw in that assessment. Krauthammer used a different phrase to describe Obama, and I am trying to locate it now.
Point taken on capitalism. Free enterprise is far more descriptive.
Cue the Oingo Boingo Lyrics
izoneguy (Diary) Monday, March 22nd at 10:14PM EST (link)There’s nothing wrong with Capitalism
There’s nothing wrong with free enterprise
Don’t try to make me feel guilty
I’m so tired of hearing you cry
There’s nothing wrong with making some profit
If you ask me I’ll say it’s just fine
There’s nothing wrong with wanting to live nice
I’m so tired of hearing you whine
About the revolution
Bringin’ down the rich
When was the last time you dug a ditch, baby!
If it ain’t one thing
Then it’s the other
Any cause that crosses your path
Your heart bleeds for anyone’s brother
I’ve got to tell you you’re a pain in the ass
You criticize with plenty of vigor
You rationalize everything that you do
With catchy phrases and heavy quotations
And everybody is crazy but you
You’re just a middle class, socialist brat
From a suburban family and you never really had to work
And you tell me that we’ve got to get back
To the struggling masses (whoever they are)
You talk, talk, talk about suffering and pain
Your mouth is bigger than your entire brain
What the hell do you know about suffering and pain . . .
(Repeat first verse)
(Repeat chorus)
There’s nothing wrong with Capitalism
There’s nothing wrong with Capitalism
There’s nothing wrong with Capitalism
There’s nothing wrong with Capitalism
The point cannot be made often enough: Modern liberalism, as embodied in the Obama presidency, is the defender of the status quo. And the status quo is a road to economic ruin. Political forces cannot redistribute the wealth that the economic system does not produce.
Fabians
texasgalt (Diary) Monday, March 22nd at 11:42PM EST (link)is a form of socialism which arose in England in the mid 1880′s. They thought in terms of the inevitability of a socialist society through incremental changes to capitalism. Fabians had no use for Marx and thought of socialism as a religion– a sort Catholicism without Christianity.
Fabians were educated intellectuals who sought to influence (and did, in England) other key intellectuals who held the levers of power.
This may seem relevent to the moment: Fabians believed in a society “rationally” organized with all parts arranged, ordered and planned by intellectuals dedicted to the public good. They thought it was their job to enforce a “character ofconsumption” – lean on and penalize people into making “good choices”.
Historian Gertrude Himmelfarb (mother of Weekly Standard Editor Bill Kristol) explains Fabianism in her book, ‘Poverty and Compassion’. This is a good read for anyone who wants to study the roots of the modern nanny state.
http://en.wikipedia.org/wiki/Gertrude_Himmelfarb
http://www.commentarymagazine.com/printarticle.cfm/poverty-and-compassion–by-gertrude-himmelfarb-7916
your opinion on
rqballjohn Monday, March 22nd at 3:11PM EST (link)Glad to see your post and wish it was at least a weekly comment on the market and the economy. What is your opinion of what the economy will be like at the end of this year? My concern with the Health bill is that companies will continue to move jobs to less expensive labor cost. My company sells US made Golf carts type vehicles. It seems to me that the best business move on a product with a high percentage of labor cost vs material cost is to go to China. Your thoughts?
My thoughts on the markets for this year
Francis Cianfrocca (Diary) Monday, March 22nd at 7:19PM EST (link)This year won’t be anything like last year, which was the mother of all beta-rallies. A monkey could have made money last year. (Many did.) This year will be much more selective.
The outlook for corporate profits is looking very strong, which should support stock prices. In my view, the outlook for interest rates is very favorable through 2010 and into 11. I’m not with the people who are expecting a rate hike, because I don’t expect any real improvement in the employment picture.
As far as the economy is concerned, I see strong business ahead for capital-goods producers and some exporters. American businesses are aggressively retooling for lower cost structures, and Asian economies are hot as firecrackers.
I see essentially no improvement in US consumer demand, leading to the possibility of a double-dip recession. I’m more bearish in this regard than the consensus.
I don’t give investment advice here, but I’m wary of the stock market. I expect corporate bonds to perform very well. Risk-free debt will do ok, but quite volatile and not the best on a total return basis.
If you’re among the people who are buying gold, be very careful because there’s no inflation. I’m on record as predicting a $110 oil price sometime this year.
To your question about labor-intensive manufacturing: that ship sailed years ago. Anyone still doing it here is probably in a very high value-added niche. China is no longer the cheapest venue unless your market is there as well. Think Vietnam, Indonesia, etc.