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Joseph Schumpeter

According to Dick Morris, former adviser to President Bill Clinton and Senator Trent Lott, “Team Obama” made a sleight of hand move this weekend hoping not to be noticed, behind the smokescreen of the Mexican Swine Flu. Initially, when the TARP (Troubled Asset Recovery Program) was created by the Bush administration, it did not call for any transfer of stock.

Now, the Administration is refusing to accept the loan money back from these 500 companies until they meet a “stress test”, that will supposedly predict whether they are strong enough now to withstand any further shocks. But how do you interpret that? Anyway they want. Now, when the TARP was created it was agreed that the government would receive “preferred stock”. Now Team Obama wants it to be “common stock”. “Preferred” means that these stockholders get the first crack at dividends, but only common stockholders can actually vote on company management or policy.”

According to Grizzly Groundswell, “Team Obama” will create a “Bubble Czar” that will squash anyone from making too much money on the Stock Market. This will also have a dampening effect on investing in new enterprises.

According to Larry Kudlow, the entrepreneur, or “Unternehmergeist” (fiery spirit), is at the epicenter of a thriving economy and there must be sufficient allowances in the economy for investors to take risks on “wild ideas.” (Joseph Schumpeter economist 1883-1950), Alan Greenspan’s teacher at Harvard. There is an old saying “No Risk, No Gain.”