The Obama Economic Magic Continues
You may have read that big, beefy companies are sitting on record piles of cash, the stock market has recovered smartly, and all the economy needs is a corresponding acceleration in job-creation. Don't hold your breath. Small businesses are being clobbered by Obamanomics. The latest evidence from my own little corner of the world lives behind a pay-wall at Dow Jones's VentureWire Lifescience newsletter. Here's a relevant snippet:
In the third quarter, venture-capital investment into closely held health-care-related companies in the Bay Area totaled $421.5 million, down 35% from $650.6 million in the same period a year earlier, according to research firm VentureSource.
That drop was far steeper than the 24% fall in overall venture investment into Bay Area-based companies in the third quarter from a year earlier, and also was a more pronounced dive than the 11% decline in venture financings of health-care start-ups nationally in the same period, according to VentureSource
Accelerating decline! ObamaCare may not be containing costs, but the healthcare investment curve is bending nicely.
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May '10
Re: The Obama Economic Magic Continues
Another data point: Cisco's disappointing earnings forecast and subsequent 15% drop in share price. Not only has this turned a so-so week for tech stocks into a complete downer, it puts CSCO back under $21 a share when it was so close to my $26 break-even point!
I plan to take a page from the Democrats' playbook and hold this single event against President Obama for the rest of my days. "Obama lied! Cisco set a new daily loss record!" Open to suggestions for how that will fit on a bumper sticker...
Jun '10
Re: The Obama Economic Magic Continues
Get a bigger bumper.
May '10
Re: The Obama Economic Magic Continues
The shorthand for the Carter years: malaise and stagflation. Does anyone think we can make the Obama years synonymous with "capital strike"?
May '10
Re: The Obama Economic Magic Continues
Does Venture Wire give figures for other states? I wonder how much of the decline in Bay Area investment is related to California's worsening business climate, in addition to the downward pressure from Obamanomics.
Aug '10
Re: The Obama Economic Magic Continues
Are you implying that there is uncertainty in the healthcare market in light of the seemingly intractable Oabamacare?
How could that be!
I really think this is all by design. Obamacare was meant to hose up the healthcare system so the Dems could finally usher in a single-payor system, which has been their plan all along. They still might reach their goal, in fact, given that nobody seems to have a clue how to remove this abomination from the body politic.
Obamacare is like that spider-like embryo thing from Alien that wraps around your face and shoves a tentacle down your throat...