It's now two years and two billion dollars later...
And in many ways, we're right back where we started with the same president, and a house divided.
For investors, all the uncertainty this situation brings to the fiscal cliff and its impending tax increases and spending cuts are likely to fuel plenty of volatility for the next several months.
Yesterday's almost 300 point drop on the Dow and a 7% pop in the VIX are good examples of this.
We can also expect Ben Bernanke to be in place until at least early 2014. The only change I expect from the Fed now is more frequent and still larger easing campaigns, as well as potentially extending low rates, again, beyond mid-2015. Even if Bernanke is replaced, I expect only more of the same seriously misguided policies.
In fact, just yesterday San Francisco Fed President John Williams hinted that the most recent QE3 bond buying program could well exceed $600 billion.
So what does all of this mean to investors in hard assets – particularly those with holdings in gold and silver?
Since Obama was elected in 2008, gold is up 116% and silver us up a whopping 198%.
Honestly, I expect a similar performance could well be enjoyed over the next four years. Constant easy money, extreme low interest rates, mounting uncertainty, and growing investment demand are likely to be the drivers.
If this plays out, by the time the next election rolls around in 2016, we could be looking at $3,700 gold and silver may be trading at $95. Frankly, I could see both of these levels easily surpassed.
As for energy, keep in mind that Obama has stated that he's strongly behind the "green" kind. That puts him in a quandary over natural gas.
Certainly, it burns more cleanly than either oil or coal. But much of the new supply comes from shale. That means a lot of fracking is required to get at it. The problem is there is a fair amount of environmental opposition to fracking, since those groups believe it can pollute aquifers, and cause minor seismic events.