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 ‚ÄúThe Kudlow Report ‚Äú 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 CNBC‚Äôs ‚ÄúFast Money‚ÄĚ said he wasn‚Äôt impressed and blamed President Barack Obama.
‚ÄúIt 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 ‚Äėwealthy,‚Äô who apparently the government hates,‚ÄĚ Macke said. ‚ÄúIf this administration can get their act together and be pro-business to support the idea of success instead of penalizing it ‚Äď that would be one thing that would get me excited.‚ÄĚ
Macke echoed a similar sentiment heard on the March 3 broadcast of ‚ÄúHardball‚ÄĚ 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.
‚ÄúThe other thing would be a coherent message for them,‚ÄĚ Macke said. ‚ÄúYou can‚Äôt save everybody. You got to let somebody fail. He‚Äôs confusing being articulate with being a leader. To lead ‚Äď you need to unite the nation and to introduce the idea that someone can fail.‚ÄĚ
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.
‚ÄúI‚Äôm going to direct both you guys away from the propeller-headed economists and dead British guys and into reality,‚ÄĚ Macke said. ‚ÄúScared people don‚Äôt spend. Americans are scared because no one‚Äôs in charge and the plans that they hear don‚Äôt make sense.‚ÄĚ
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 CNBC‚Äôs Jim Cramer have lobbied for, the market would stage a massive rally.
‚ÄúIf the president changes his tune even a little bit, it‚Äôs almost impossible to be worse in terms of his tone ‚Äď if he improves a little bit, we can get 2,000 points out of this easily,‚ÄĚ Macke added.