Happy New Year, Wall Street

Investors should be happy with President Obama, if six straight years of climbing markets are an indicator. And in this case they are, because Obama’s Fed (and he owns the Fed as no other President has) has kept the easy money spigot wide open for six years. (George Bush opened the spigot in 2008; so both parties deserve blame and/or credit.)

Only this last Fall did Yellen finally close the tap. But “these things must be done delicately.” And she did … with fanfare, gradually and in stages, so the markets could adjust. And, of course, somehow she and Obama managed to match the closing of the easy money tap with the opening of the cheap oil tap—over which you’d think they had no control.

If that doesn’t buy lower Manhattan votes, I don’t know what would. (Some investors will complain that cheap oil ruins some investments, even as they rush to the ventures who will profit from cheap energy. They’ll tell us which those are after they’re fully invested.)

If you’re a politician, it’s whatever works.

Advertisements