I have thought all along that this was a bear market rally since March. Now, there are signs that insiders are selling so they think it is over. Selling is 30 times buying by insiders and sophisticated investors. Why ? Look at the coming consideration of Cap and Trade. Why would anyone invest in the USA ? Maybe if it fails, the market will rally.
Obama has no concept of economics and I doubt he has many advisors who do. There just doesn’t seem to be a Robert Rubin who could lecture Bill Clinton. The Democrats even admit that Cap and Trade will cost jobs.
House Speaker Nancy Pelosi of California urged her colleagues to vote in favor of the cap and trade bill, saying the measure was about four things: “jobs, jobs, jobs, and jobs.”
She was right—the House-passed version of cap and trade is all about jobs: jobs lost, jobs never created, jobs sent overseas, and, unbelievably, jobs people will be paid for doing long after they cease to exist.
According to Friday’s Washington Times, the legislation includes language that provides, should it become law, that people who lose their jobs because of it “could get a weekly paycheck for up to three years, subsidies to find new work and other generous benefits—courtesy of Uncle Sam.”
How generous are these benefits? Well, according to the Times, “Adversely affected employees in oil, coal and other fossil-fuel sector jobs would qualify for a weekly check worth 70 percent of their current salary for up to three years. In addition, they would get $1,500 for job-search assistance and $1,500 for moving expenses from the bill’s ‘climate change worker adjustment assistance’ program, which is expected to cost $4.2 billion from 2011 to 2019.”
Instead of being a the source of millions of new jobs of “green jobs”—as House Democrats are fond of saying over and over again—the provision is a hidden admission that their effort is a job killer, not just a massive new tax on energy.
That should certainly make the stock market sit up and take notice.