President Obama referred to stocks being a good buy yesterday because of their “profits to earnings” ratio.

Now usually one uses a price to earnings ratio since in general profits and earnings are usually equal.

“What you’re now seeing is a profit and earnings ratios get to the point that buying stocks is a good thing if you have a long-term perspective on it,” President Obama, after meeting with British Prime Minister Gordon Brown.

One does not have to wonder how this will be picked up by the press – if it were President Bush, it would be the subject of jokes.

Perhaps that is why we have a nearly 20% decline since Inauguration day.