Stock market falls to new low as nation prepares for Obama's State of the Union and new class war

The financial markets continued their astounding decline today, off 173 points on the Dow by midday CDT.

Investor confidence continues to be undermined by Obama administration policy, first by a new move toward nationalization of the country's biggest banks and second in preparation of the president's State of the Union address tomorrow night.

Under public pressure led by CNBC analyst Rick Santelli for large public spending plans, the president now has made the incredible claim that he'll cut the budget deficit by two-thirds despite the price tags with his economic, home and banking plans.

Obama says he'll close the deficit by taxing the rich more and saving money from the withdraw in Iraq. Neither are sure things.

There are a lot less rich in this nation because of the fall in the financial markets. And the rich are needed to spend to create jobs. Tax them more and they'll just quit spending like the rest of us.

Second, military commanders are very divided on the pace of withdraw from Iraq. You can never remove yourself from a war on time. And that peace dividend will be largely eaten up by the growing conflict in Afghanistan.

Investors understand these truths, which is why they are deserting the financial markets and consumer spending when the nation needs them most.