Today, post US-credit-downgrade by S&P, stocks are tanking. Obama gets on live TV in the middle of the trading day, lies brazenly about the narrowly averted threat of govt default (a bogus threat that he himself used to try to lever Republicans into agreeing to more of the profligate tax-and-spend that put us into the current mess), and reminds everyone that he is still holding out for tax increases. While he does this the stock market is steadily ticking down and gold is steadily ticking up. Finally he starts talking about Afghanistan and stocks recover a bit, only to tank again later. Is there nobody on his staff with the sense to tell him to avoid making gratuitous comments about markets during trading hours? Or is he simply so arrogant that he thinks that he can talk the market up so that the public won’t see him as the colossal failure that he is? Who knows. You can fool some of the people all of the time and all of the people some of the time, but it’s generally wise to assume that you can’t fool markets any of the time. Markets tell the truth and they discount bullshit. A politician stupid or desperate enough to go up against the markets with bullshit arguments like Obama’s is submitting to a public lie detector test that he will fail. A humbler man might learn from such an experience. I doubt that Obama will, and the American public will continue to pay for his bad ideas and arrogance.