Xorthfred

Long-Term Ugliness

The quality of the governed's life is eventually equal to the quality of government. Every one of the above stocks have suffered from fundamental and technical misallocations in the economy as a result of govt. mistakes. GM, although a poorly run company, suffers due to high oil prices-a situation caused by outlawing drilling in America in the areas where oil resides. PFE is a victim of the ghastly and enormous costs in terms of time and money imposed by the FDA to get patent drugs approved. The financial stocks plummeting in the above charts are the result of a congressionally enhanced housing bubble caused by extraordinary low down payments to buy housing over a very long time. This situation would have not been possible without the creation and subsidization of FNMA and FHLMC; extremely cheap money; and the 3.5% down FHA. Keep voting in politician lawyers who know nothing about economics and hate business, then we will become a very poor country indeed!