I judge a company by how well they spend their precious resources to create growth for their shareholders. I furthermore judge my government by the same measure. Well, to my dismay, I watched as nobody commented on the terrible waste of resources when the U.S. Government decided to send the backup Air Force One plus an F-16 on a photo-op over New York City. The news sources all commented on how everyone was scared that it was another terrorist attack, and everyone was just relieved that it was just a false alarm.
Sorry, but I am not relieved. I was amazed that no one commented about the total waste of money that this stupid stunt threw down the drain. To me, this demonstrates what happens when you allow a government to have a bunch of big blank checks - they think they can do anything. Funny, did not the Obama Administration just rake the car companies over the coals for flying expensive corporate jets to Washington for important business? Meanwhile they spend hundreds of thousand of dollars for a 747, F-16, several pilots and crew so they can take pictures of Air Force One flying over the Statue of Liberty.
This type of waste is typical of a government who spends like crazy without any regard for results. Ineffectual controls and poor decision making are usually signs that a company will soon fall. What does this say about our current Administration? We have unemployed workers everywhere, everyone is fighting to save money, and yet they are wasting money without even thinking about it. When you consider that the current bailout amounts to over $20,000 per taxpayer, the same could be said about this wasted economic bailout. We have poured over $2 trillion into banking system that represent less than 20% of total lending, yet we ignore trying to invigorate the non-bank lending market that lends 80% of the money to American businesses and consumers. At this point, it is becoming painfully clear that the Obama Administration is all fluff and no substance.
Before people want to paint me as a Republican, I should point out that while I am a conservative, I did not vote for George Bush - on the grounds that I knew first hand he was an idiot (I am from Texas and I had seen him too much before he was President). I vote and stand behind competency and efficiency - and it is becoming clear that this Administration is doomed to fail if they continue on this inefficient path. I sit back and think what would have happened if they just wrote each of us taxpayers that $20,000 check. We would have put it in the banks (which would have helped them), we would have spent some of it (which would have helped the economy), and we would have saved some (which would have kept interest rates low). What a waste! It confirms my long held suspicion - give money to the government and it will be wasted, give it to the people and it will be allocated efficiently. So where does this government and economy go from here - the same place as all inefficient businesses - down the drain.
At various times the author will hold positions in SDS, SPY, GLD, DIG and DUG. I am currently 95% in cash.