These blathering imbeciles who keep talking the market down..dow to 3000..etc etc always begin with a lame reason like " valuations are too high and the VIX is way overbought which means aramgeddon..." and the very next thing they say is "Obama is a disaster..this administration has to go... etc etc"
While the analysts who quietly state the facts, like Acampora, "VIX over 40 in 6 out of 8 past events since 1990 always presaged a 40% increase in the market within 4 months, etc etc," never comment on the administration or government or Obama.
It has become clear that the negativism that is destroying the market, and the country, is pure RACE RAGE. The Tea Baggers are have nots and they cannot stand the idea of a black President, even though he's the best thing they have going. I'm afraid democracy with a bunch of idiots for voters spells doom.
There has always been 50% of the populance that are unthinking emotion following puppets. Any movement (like the TeaParty) that appeals to thess type pf people will gain strong support. That is why the world is and always has been a dangerous place. Chec out history. Stong nations are not satisfied until they destroy themselves.
No, BO is a perfect representative of the Democratic Party platform. The only conflict is one party platform against another.
But what is the political issue that concerns the economy ?
BO said no to the UK calling for US budget reductions. Then here we are a couple of years later and we now have budget reductions planned to begin in a couple of years. There's no way around it, we have to pay for the bank bailouts in addition to the previously know budget demands.
But budget reductions are less government spending and could slow the economy but of course protect the currency.
The thing that the Democrats have missed is that a premium tax structure can work during boom times but will hinder private sector economic activity during slow economies.
The thing that the working class Tea Partiers have missed is that the tax structure benefits them in that their social security payments would have been more than they will save in taxes.
But keep in mind, being paid the social security number is not much help if the currency is diminished.
Basically, maintain Medicare and pay Social Security based on need. But do that and private pension plans go bankrupt since they often tier payments to Social Security income.
But economic activity ? It's multi-nationals, energy, green technology, warehousing and distribution, corporate and home computing, health care, financial services, apartment rentals, efficient cars, and many other things.
There was a fundamental change in the VIX that occurred in Oct. 2008 when the SEC eliminated the option market maker exemption to the close out rule. They cannot naked short a stock anymore.
Prior to Oct. 2008, the option market maker was able to use naked shorting to help hedge an unbalance of put buying with low cost hedging techniques (synthetic option positions). After Oct. the option market maker had to BORROW shares to short for hedging so that raised his cost and therefore the option spread and premiums.
The net result was to make the VIX, the fear index or the volitility index, MORE VOLATILE itself.
Anyone who compares any VIX information pre-Oct. 2008 and post-Oct. 2008 without compensating for these fundamental changes, does not understand what happened or is distorting by comparing apples to oranges.
IMO, it is wrong to assume that people are "blathering imbeciles" but it is more proper to assume they "believe" what they are doing is the right thing OR ... they have a vested financial interest in the outcome of the event. I usually assume the latter until I have sufficient evidence of the former.