Top Gun

Five Predictions for This Market

Bought GE yesterday. I suspect it is worth more now in pieces, which means they will emerge. Immelt took much of the blame, that in and of itself told me I had to own some. I'll just let it sit for a while.

Nice post.

Jim Rogers on the Economy - Bearish on Stocks and Government

Agree with him completely - find the bottom (price discovery, bank failure, etc) then grow out of it. The government could establish a bottom for prices, but it has to be low.

If we put in supports to keep things up, we will emerge over several years as a socialist society. If we let values fall and don't create public debt to replace private debt, we reset and can keep our innovation associated with capitalism.

We sometimes forget why capitalism is important. We use the word "growth". We "grew" in the last five years - all illusion, money supply growth caused by credit creation and the elimination of M3 which stopped investors from seeing real inflation. In fact, capitalism allows for efficient utilization of resources by everyone, improving the human condition. Isn't improving the human condition the goal of socialism as well.