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Friday Outlook: Rage Against the Machine

You forgot one thing Dr O, not doing anything about global warming imposes a tax on our children. Is that preferrable? Do you hand your bills to your kids? why is this different. Don't get me wrong, I want less government, in general. And there are many areas that can be cut. For example, George Bush 2 pushed through a big drug bill without funding it and with false data, he sold more bonds to China. Check the record, Bush was the driving force. And forget about the costs of his war, also based on fraudulent data. Did you speak up then? However some areas do need regulation. this is one of them. there has to be a recognition that the addition of carbon into the air has a cost, and that cost must be paid by the current user, not by our kids.


On Jul 17 06:56 AM Dr. O wrote:

> Things I, as a life-long Midwesterner with only an average knowledge
> of economics and financial markets, am totally freaked out about,
> in no particular order (bearing in mind that I listen to a lot of
> conservative talk radio):
>
> 1. Obama and the Congress are crystal clear about what they want
> to do as fast as possible:
>
> a. Pass an 800 billion dollar stimulus bill that no one read that
> has been of little to no benefit to the economy, but was mostly a
> hodge-podge of pet spending projects, and pay back to political allies.
>
> b. Under the delusion of global warming, pass a carbon tax that would
> hurt already impoverished Americans with higher energy costs, and
> really hurt the oil refiners, coal companies, and energy producers.
> Ironically, cap and trade would increase our reliance on foreign
> energy by making it cheaper to import energy than produce it at home.
>
> c. No interest in here and now clean energy solutions such as natural
> gas and nuclear energy.
> d. Nationalize the health care system in such a way that costs to
> the government will continue to skyrocket (according to the CBO),
> choice will decline, and quality will surely decline.
>
> 2. Higher taxes on just about everyone and everything in order to
> grow the government at the expense of the private sector.
>
> 3. Although Democrats are by nature populists, the polices noted
> above are guaranteed job killers, and there is no end in sight to
> the increase in unemployment. As it stands many states have 10% plus
> unemployment, and people without jobs don't pay taxes, don't buy
> things, and don't pay their bills (credit card, mortgage, etc.).
>
>
> 4. Skyrocketing yearly budget deficits to the tune of Trillions of
> dollars, as well as skyrocketing cumulative national deficit. The
> trick here is that you can keep interest rates low by having the
> Federal Reserve buy the debt that the Treasury issues. The problem
> is that this is a ponzi scheme, and it destroys the value of the
> currency.
>
> Japan has gone down this road already and one may note that property
> values declined for about 20 straight years, their stock market lost
> 75% of its value over a 20 year period, and the Yen was purposely
> devalued to stimulate exports. In short, Japan has been in a steady
> decline for the past 20 years.
>
> 5. Obama and the Congress really have no idea how destructive their
> policies will be to the economy, or, as some have said, they do understand,
> and want the economy to collapse in order to consolidate their power
> over the people and implement their political agenda, which seems
> something like fascism.
>
> 6. Crime will increase as people lose their jobs and become desperate
> for basic goods and services.
>
> 7. Cities and suburbs will be studded with empty stores and crawling
> with unemployed men wandering the streets. Think New York in the
> 1970s. Remember what Time Square used to look like?
>
> 8. The American Experiment will be over for a while, as the consumers
> outnumber the producers, and for most the juice isn't worth the squeeze,
> that is, working hard no longer pays. Like France.
>
> 9. The US Dollar will collapse, meaning that anyone smart enough
> to hold onto their money will see its buying power evaporate. Holding
> other currencies, precious metals, and commodities should help for
> the financially literate.
>
> 10. All this stuff about stock market manipulation is more or less
> true, meaning that the millions of Americans who counted on stable
> or rising equity prices to fund their retirements through their IRAs
> or 401Ks will be no better off than an investor with Bernie Madoff.
>
>
> These are things I worry about these days.

Wall Street Breakfast: Must-Know News

I'm glad the working committee figured this out, some of us saw it 3 years ago without a working committee. Lax oversight by George Bush regulators. Paulson to the rescue now when it's too late. What a joke. It was all fine when they were making money.

Financials and Retail: Not as Dire as They Seem

These companies are not bargains, they will go lower- a lot lower. Real estate has a long way to go on the downside.