CNBC's Macke: Not Buying 150-Point Rally, Obama Holding Dow Back 2,000 Points
Was it just a bear market rally or were investors starting gain a little confidence in financial markets? CNBC âThe Kudlow Report â host Larry Kudlow had Jeff Macke, founder and president of Macke Asset Management on his March 4 program and asked if the rally, along with other indicators might be signs of a recovery. Macke, a co-host of CNBCâs âFast Moneyâ said he wasnât impressed and blamed President Barack Obama.
âIt would if not for an administration that has created a country full of 330 million people who all want to make $249,000 a year, less they want to become one of the âwealthy,â who apparently the government hates,â Macke said. âIf this administration can get their act together and be pro-business to support the idea of success instead of penalizing it â that would be one thing that would get me excited.â
Macke echoed a similar sentiment heard on the March 3 broadcast of âHardballâ from MSNBC commentator former Rep. Harold Ford, Jr., D-Tenn. Ford said that Obama was failing in his duties to articulate a message on how his administration was going to handle the trouble financial system ailing the overall economy.
âThe other thing would be a coherent message for them,â Macke said. âYou canât save everybody. You got to let somebody fail. Heâs confusing being articulate with being a leader. To lead â you need to unite the nation and to introduce the idea that someone can fail.â
Kudlow alluded to financial indicators that have historically been precursors to a recovery during recessionary conditions. However, Macke said these signs and the philosophy that Keynesian economics can do some good for markets are meaningless due to the fear in the economy.
âIâm going to direct both you guys away from the propeller-headed economists and dead British guys and into reality,â Macke said. âScared people donât spend. Americans are scared because no oneâs in charge and the plans that they hear donât make sense.â
Since Obama took office on Jan. 20, the Dow has lost 900 points. Macke contended that if the Obama administration would get its act together, as others including CNBCâs Jim Cramer have lobbied for, the market would stage a massive rally.
âIf the president changes his tune even a little bit, itâs almost impossible to be worse in terms of his tone â if he improves a little bit, we can get 2,000 points out of this easily,â Macke added.