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Obama's Spending Spree, Budget Numbers "Have All Gone Mad," Analyst Says

Posted Aug 27, 2009 09:00am EDT by Heesun Wee in Investing, Products and Trends, Recession, Autos, Housing

When retail expert and all-around economy watcher Howard Davidowitz appeared on Tech Ticker in February declaring the worst was yet to come for the U.S. economy and that Americans' standard of living has changed permanently, our comment boards lit up.

But surely with the latest rally off the March lows, bearish Davidowitz is more bullish, right? Not a chance. Look at your financial history books.

Two of the biggest rallies of more than 40 percent occurred during the Great Depression, says Davidowitz of Davidowitz & Associates,a retail consulting and investment banking firm. "People were sucked in and ultimately were destroyed," he says. It's a warning to today's investors, who are hoping to extend the rally. 

Don't get Davidowitz started on the economy or fundamentals. "Barack Obama's numbers have all gone mad," Davidowitz says. The Obama administration recently announced the U.S. budget deficit will be $9 trillion during the next decade; $2 trillion higher than the original forecast.

And, the proposed price tag for health-care reform? "Minimum $3 trillion," Davidowitz says. "One trillion? Are you kidding?"

Stimulus binges? Roller coaster equity performance over years? Stubborn consumers holding out for sales as deflationary pressures loom over the recovery? Sounds like the U.S. economy is turning Japanese, Davidowitz says.

 

 

 

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422 Comments

hunterta
hunterta - Thursday August 27, 2009 09:27AM EDT

Is this Henry's father??

Yahoo! Finance User
Yahoo! Finance User - Thursday August 27, 2009 09:28AM EDT

Yahoo! Finance User - Thursday August 27, 2009 09:12AM EDT - Oh the doom sayers will love this one. TT is all about you today. You asswipes keep listening to this negative spin while I take your money in the market. LOSERS ---------------------------------------------------------------------------------------------------------------- So why do you care what the “losers” do? You’re better than them and wealthier, too, right? So why don’t you just enjoy your superiority and success? It’s because the party you’re at is dead, isn’t it, and you’re trying try bring more people in to liven it up, right? You don’t fool anyone, LOSER.

RurikH
RurikH - Thursday August 27, 2009 09:28AM EDT

Thanks to the Bush Tax Cuts, Medicare, and the illegal war in Iraq, we've wasted billions that should have been spent bolstering our infrastructure and economic stability. The Republican's ideal of de-regulation allowed the banks and corporate America to take unnecessary risks and avoid paying even the same tax rate that their god, Reagan, had during his tenure. Now they're trying to scapegoat Obama for their failures. It's like going out to dinner with someone and getting stuck with the check while they sneak out the bathroom window.

yogi9448
yogi9448 - Thursday August 27, 2009 09:28AM EDT

And the politicians say " I love spending someone elses money, I get millions in kick backs through my lobyist friends/family or just award contracts to companies I or my spouse owns. The media regurgitates whatever I tell them so if you or your company want my endorsement you gotta pay me. Who's going to stop me; voters, tea parties. Give me a break, I own the media, academia and acorn, so what if it's not in the media I never hear it, academia keeps cranking out clueless liberals and thanks to acorn I don't need your votes anymore either. And the best part is, unlike in the private sector, results don't matter. Life is Good".

Samuel BruceC
Samuel BruceC - Thursday August 27, 2009 09:31AM EDT

Absolutely correct. This administration is the worst since FDR!

jose
jose - Thursday August 27, 2009 09:35AM EDT

Obama have no clue on the economy, his self deity ego and his followers are completely and utterly destroying the american culture and if he is not stop soon America will for ever be a third world country. this guy is the worse of presidents to ever step in the white house, we all knew he was not qualified for the job and you voted him in, now is time to pay the price for it. God save us all!

Joe
Joe - Thursday August 27, 2009 09:36AM EDT

^^^Obama and the gang are spending like drunken sailors and continue to write checks when there is no money in the bank. www.usdebtclock.org

Katy C
Katy C - Thursday August 27, 2009 09:37AM EDT

There are no more doomsayers. The doom has arrived. It's our reality now, and it will probably get worse as our government has not completely destroyed itself yet, which seems to be the intention: to cause chaos and then turn us into wage slaves.

chubby
chubby - Thursday August 27, 2009 09:38AM EDT

LOL guy wants to be the next Dr Doom.

AMDshortsRfools
AMDshortsRfools - Thursday August 27, 2009 09:38AM EDT

As long as Obama doesn't call his policies socialistic, Americans love it. However, a turd by any other name is still a turd.. remember that next time he's dictating pay and products to be produced by a company for simply borrowing money from the government. Since when does government have the right to tell you how much you can earn and American's accept it???? Since when does the government start running a bankrupt car company with tax dollars and it's just great? Now ask yourself what the hell does this have to do with getting the economy back on track? Obama is wasting our tax money on the take over of the private markets and to hell if we can afford it.

san
san - Thursday August 27, 2009 09:39AM EDT

Goverment should lead by example, don't spend what you don't have!!! The great depression was really caused by people buying stock on leverage during the recover bounce and then losing 10x their bets when it went back for a double dip, so be warned!

sdw
sdw - Thursday August 27, 2009 09:39AM EDT

isn't it funny how all the people who took money from hard working americans savings who were, albeit it dumb enough to have it tied up in the exact companies unknowingly though 401k's and such that lost billions due to liberal influences and leadership, and are nw making money again off of those companies being bailed out, don't seem to have names, they are all Yahoo Finance users. Life wouldn't be much worth living if I have a billion dollars, and had to hide like these peices of crap. If I ever did make a billion dollars they would have the spot light on me and be using lazer pointers to point out every flaw, yet they hide behind generic names over $500k.

JON
JON - Thursday August 27, 2009 09:40AM EDT

The most charismatic and 'real' guest on TT. He is absolutely correct, all the government numbers are bogus. The government just mailed 3900 stimulus checks to inmates and we expect them to run our country and health care....please. If I ran my company the way the government runs theirs I would not have any customers and I would be broke. You can't spend more than you make. It is simple economics.

Yahoo! Finance User
Yahoo! Finance User - Thursday August 27, 2009 09:41AM EDT

Bush kept the two wars and other items "off budget". Nobody has said what his real deficit would be if he were still in office. I doubt it would look much better. Remember " this sucker's going down."

Ronny
Ronny - Thursday August 27, 2009 09:42AM EDT

If Aaron and Henry aren't married....they ought to be!!!

J
J - Thursday August 27, 2009 09:44AM EDT

You know, the bulls keep saying stocks will improve without saying why. I want to know, how are the fundamentals of this economy good? If you say invest on faith that things won't go down, fair enough. But can any bull tell me how things are getting better without government intervention (and, since we're running debts, if that's really an improvement or taking a bucket into the ocean looking to prevent a flood)...

dabears
dabears - Thursday August 27, 2009 09:44AM EDT

Obama is destroying America and the Lemmings that are following him will wake up one day and realize they are in the worst economic shape of their lives. The 51% of Americans that pay no income tax and love Obama are in real trouble.

BobL
BobL - Thursday August 27, 2009 09:44AM EDT

Clearly the administration is clueless on financial matters. Does it make any sense to create $9-10 T in debt to give perhaps 15 M people insurance? I think not. Come up to 30,000 feet Obama and take a presidentual look at what you are doing to this nation. You are no longer in the third grade!!!

David R
David R - Thursday August 27, 2009 09:45AM EDT

I guess we all should have listened and voted for Ron Paul..... Wake up America. Doctor Paul knew what he was talking about.

Believe In Next Year
Believe In Next Year - Thursday August 27, 2009 09:46AM EDT

Obama SUCKS!!!

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