Dynamite Dan Clifton, superanalyst with Strategas Research, sums up Wall Street's vote of no confidence on Obamanomics:
With the S&P 500 off close to -8.5 pct. since the budget was introduced, it is clear that equity investors remain skeptical of the government’s plan to lead us out of this financial crisis. Federal government spending is set to increase from 21 to 30 pct. of GDP and the bias is now towards a permanently higher level of spending. However, treasury yields have failed to send the dislocation signal. At this point, it is likely that equity investors are emerging as the new vigilantes, given that higher taxes are going to be needed to finance this permanent increase in spending.