Obamacare Decision Win for Market?

Charles Payne
Posted: Jul 01, 2012 12:01 AM

Wile E. Coyote: Allow me to introduce myself, my name is Mud.

Bugs Bunny: [faints] and remember, Mud spelled backwards is Dum.

Wile E. Coyote: Allow me to introduce myself. My name is Wile E. Coyote, genius. I am not selling anything nor am I working my way through college.

Bugs Bunny: I...

Wile E. Coyote: [warningly] so let's get down to cases: you are a rabbit, and I am going to eat you for supper.

Wile E. Coyote: Now, don't try to get away! I am more muscular, more cunning, faster, and larger than you are, and I am a genius. Why you could hardly pass the entrance examinations to kindergarten.

Wile E. Coyote: [Bugs yawns] so I'll give you the customary two minutes to say your prayers.

Bugs Bunny: I'm sorry, Mac, the lady of the house ain't home. And besides, we mailed you people a check last week. [Shuts the door then descends into his home as Wile E. folds up the door and leaves]

Wile E. Coyote: Why do they always want to do it the hard way?
From "Operation Rabbit" 1952

Mad Genius?  

The decision is in...long lives the decision, until November. I have to say it was an upside down last week, where Chief Justice Roberts joined the left and President Obama admitted political vulnerability from the ruling that the healthcare law is constitutional. The essence of the Supreme Court ruling is that Congress has the power to tax Americans and Americans have the power to change Congress.

The kneejerk reaction toward Roberts was one of shock, anger, disgust and confusion. Conservatives went apoplectic saying Roberts was dumb and his name is mud to them and their cases from now on. But, as the day wore on, I began to wonder if Roberts over -thought this decision like Wile E. Coyote or was he simply being wily? President Obama didn't mention the word "tax" when he took his victory lap and many supporters will ignore that fact as well but it's the only reason the law stands today.

President Obama promised no taxes for the middle class but this is a gigantic tax. Moreover, when states decide not to play ball (red states will say no thanks and blue states are broke) and those "credits" pile up it will have a huge impact on the nation's debt. So in essence, we just got a tax hike and bump in our national debt. There was talk of free "preventive" care like mammograms but the best preventive care is eating healthy and exercising. Right before President Obama's victory lap, Mitt Romney held his own press conference.

Calling the healthcare act a "job killer" and using the short appearance to ask Americans to vote him into office to repeal the law must have resonated as later in the day contributions rallied north of $2,000,000.

President Obama closed his appearance by saying that Americans will love this law at some point. It could be five, ten or twenty years but we'll all get to know it and love it. Twenty years is a long time to indoctrinate people so I can't speak to how people will feel although the nation would be so flat broke and spending every spare nickel on interest on our debt, it's doubtful we'd hold parades marking the day the Supreme Court made its fateful decision.

The bigger question is not how we feel about this in years but will we see Roberts as a genius or knucklehead that was outsmarted by President Obama.

Which one of these guys is the rabbit and which is the coyote? And, yes, why do we always have to do this the hard way?

Merkel Blinked?

Did Angel Merkel blink, I don't think so. I do think news out of Germany points to increased anxiety over the drawn out process of saving a continent where the spenders insist on dictating policy to earners and savers (like in America). Yes, there was compromise made but the single banking authority dovetails with the idea that I believe is the end game - a United States of Europe. In the meantime, the amount pledged to Spanish banks is a drop in the bucket, and much more has to be done. I continue to think it will be although the song and dance elements are part of the show, too.

Two big news items here include earnings results from KB Home (KBH), which support the idea housing has hit a bottom and might be edging higher. Personal income and spending came in better than many expected as well.