Believing the EU crisis has passed (or, for the cynical, believing it's about to get a lot...

Believing the EU crisis has passed (or, for the cynical, believing it's about to get a lot worse), Goldman pulls off its hedge. Originally opening a trade 2 weeks ago to go long Spanish 5-year paper against a short in equivalent Italian debt, Goldman makes it a naked long, calling it one of the firm's top tactical trades of 2013.
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  • Brian Bobbitt
    , contributor
    Comments (2087) | Send Message
    How can I answer the question the Current proposes? I can postulate that TPTB (home and abroad) have not solved the debt crisis, the unemployment growth rate, the slowing economy, the lack of ability of entities large and small to function normally with interest rates dropping. Bond buying is so bad, that countries have to buy their own debt. How's that for solving your financial difficulties? We used to get the economies going by lowering taxes, finding out why companies are taking their floundering companies offshore, downsizing or closing altogether. (Keeping governments from getting revenues to pay for their sworn duties), Then solving the problem and luring companies back. The handouts of a charity must diminish in league with the diminishing funds received from donations. Companies forced to buy health insurance, will either pay it, and raise price accordingly, (especially if that expense takes out the profit), go offshore, or find another way to make up the losses. Even closing the doors. Denny's Restaurants decided to put a surcharge on the check to help pay for mandatory government induced expenses. Usually, when a company encounters a letter from a supplier, increasing the price of a commodity they use to make their product, the increase MUST be passed along, or make less profit. These are simple tenets that economics 101 teaches, but no one seems to understand. I am not going to try to sit here and give the formula for financial success, but you are looking at the formula for financial failure. This can only result in inflation, but the NGM's say inflation is low and under control. Okay, as I have been saying, no remarkable real inflation happening? Then worry about 'the new cost of living' as I call it.
    Deflation, inflation, all the things that the NGM's attempt to control are failing miserably and all in the name of charity.


    I am beginning to think, if I was in charge, and there are so many liberals out there, they have taken over the country, making us and Europe so near socialism, it is not but the name spoken that keeps being socialistic away. We are a socialistic society. The Voters have shown that twice now. Thomas Jefferson said it would happen, "when the people of a republic find out they can vote themselves the money out of the public treasury, that republic will not long stand."


    So, what is the real answer, if I were in charge, I would cut all fat out of the government, give it back to the states for one thing. For another I would stop all welfare, and let the people of the country give to their favorite charity all they like, (even make it tax deductible if you like). Then like a free society which we should be, if you want to give your money away, fine. But the government should not be allowed to take the money we need to run the country, and give it to foreign countries, welfare, and so on. Social Security needs to be back to where it was originally intended, not a piggy bank to be held up for other things.
    I could go on and on about what is wrong, and I am screaming inside but no one is listening. Woe is us, we have met the enemy and he is us.
    The fellow running the government is not the problem. He stated his agenda, and is being allowed to run it, and even deeper than he said in the campaigns. It is much easier to undo the mistakes of the president, than to undo the thinking of those who elected him. One of these days, we will find someone who can convince Congress that the country is more important than getting re-elected.


    Food for thought. (THAT is not going up in price)


    Capt. Brian
    The Lost Navigator
    6 Dec 2012, 05:33 PM Reply Like
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