Wall of Worry

Investors have long uttered the adage that markets climb a wall of worry. Uncertainty fuels speculation, but January in stock trading conveyed bitter certainty. The month was the worst January in the history of market performance and the worst post-inauguration down-slide ever. Investors are voting with their feet. While the old-line press tries to insulate Obama by terming this the "Bush recession", the proposed stimulus Democrats pushed through in the US House of Representatives has no prospect of reversing the nation's economic ills. It is a leftist wish-list that rewards those who do not work with earned income tax credits-a misnomer for those who earn no income. This is simply a welfare measure by another name. The Democrats in the Senate may peel off the couple of Republican votes necessary to end the filibuster and pass this pork-laden monstrosity, but it won't have any salutary effects on the markets or prevent the nation from requiring further bailouts or falling into depression. The Democrats are talking down a reversible recession that could be solved by lowering taxes and the markets themselves if they are allowed to work, and trying to produce a bill that enshrines them in power for generations. Democrats in positions of power are evidently not overly concerned about tax burdens, today it was revealed that Tom Daschle was $120,000 in arrears to the IRS. This most-ethical administration doesn't mind a few tax-cheats and is hiring former lobbyists. They will gladly bleed the productive and pass laws they have no intention of complying with. If you fail to file, you may not end up in the Federal pen, you too may end up in the Obama cabinet.