The Obama Economy

Let our journalists help you make sense of the noise: Subscribe to the Mother Jones Daily newsletter and get a recap of news that matters.

John Hempton, who is himself merely a humble (Australian) investment manager, says that one investment opportunity in particular might tell us something about how Barack Obama is doing after seven months in office.  It turns out that the big runup in firearm sales to people who were convinced that Obama planned to confiscate their guns seems to be over.  In fact, according to Smith & Wesson, their order book is collapsing:

The warning about the backlog not being binding is new — and it is clear from the new disclosure that they are having massive problems during this quarter with order cancellation.

The backlog dropped from $268 million to $178 million — a drop of 90 million.  Ten percent of that (say $27 million) was order cancellation — but a net $63 million of sales came from the backlog.  Total sales were 102 million — and less than 100 million in firearms.  The rate at which Americans are placing orders for new Smith and Wesson handguns is collapsing.

The company did not tell us the current forward order book.  At that rate of collapse what they are facing is a disaster. Whether that says anything about the size and intensity of belief of the Rush Limbaugh right — well I will leave that for my readers to discern.  We just want to make money for our clients — so we are short Smith & Wesson.

Easy come, easy go. But perhaps this means the “Obama is a fascist tyrant” bubble is about to burst — since, you know, it turns out that he’s actually a fairly conventional mainstream liberal politician with exactly zero interest in re-igniting any facet of the culture wars whatsoever.  And just how many extra guns do you really need to protect yourself against imaginary enemies anyway?  Just saying.

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate