This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Obama Says Forget Record Stocks, America Still Struggling

Stocks in this article: MCDWMTSPY

NEW YORK ( TheStreet) -- President Barack Obama wants the middle class to know that he recognizes all-time record-high stock prices mask the deep struggles that most Americans still face five years out from the financial crisis.

In a major economic speech in Galesburg, Ill., Obama touted job growth, American-made products, shrinking health care costs and deficits, but also admitted the country was still crawling back from the negative impacts of the Great Recession.

"But I'm here today to tell you what you already know - we're not there yet," Obama said. "Even though our businesses are creating new jobs and have broken record profits, nearly all the income gains of the past ten years have continued to flow to the top 1%."

The S&P 500 has risen nearly 150% since bottoming at 676.53 points on March 9, 2009 as unprecedented stimulus from the federal government and continued quantitative easing from the Federal Reserve have offered stability to markets and investors.

But average Americans who are not invested in equities and other assets are experiencing a different recovery.

The national unemployment rate remains elevated at 7.6%, while the U-6 measure -- total unemployed plus those marginally attached and part time -- ticked higher during the latest reporting month to 14.3%. The most recent quarterly earnings released by Wal-Mart (WMT) and McDonald's (MCD) missed earnings expectations, suggesting that lower-and-middle-income consumers' are still tightly guarding their money.

The president said he would push manufacturers to bring jobs back to the United States. Obama also argued for more investment in education.

"If you think education is expensive, wait until you see how much ignorance costs in the 21st century," Obama said. "If we don't make this investment, we'll put our kids, our workers, and our country at a competitive disadvantage for decades."

The president said he wanted to encourage homeownership "that isn't based on bubbles." He said that he would ask Congress to pass an idea championed by former Republican presidential opponent Mitt Romney to give all homeowners the chance to refinance their mortgages, and "cut red tape" for families who want to get a mortgage but whose banks won't offer one.

He said a secure retirement and full implementation of the Patient Protection and Affordable Care Act would be critical to middle class growth.

Finally, Obama said he wanted to make upward mobility easier for Americans in poverty.

-- Written by Joe Deaux in New York.

>Contact by Email.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,380.41 +263.17 1.63%
S&P 500 1,886.76 +24.00 1.29%
NASDAQ 4,258.4380 +41.0480 0.97%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs