Question of the Day|
Do we really care as much for our children as our parents cared for us or are we too weak to make similar sacrifices?
Click here to post your answer and let Charles know what you think.He will air some on the Payne Nation radio show.
This day in age, being kind of blue is a permanent state, the psyche of America. Far from being cool, we are tied up in knots about so many things. In fact, we have become a nation of long-tailed cats in a room filled with rocking chairs.
Years of Blue
That melancholy aura continues to haunt the market, which seems to reflect a nation haunted by lingering questions and lingering doubts. Those self-doubts can't be dodged or avoided because of the never-ending cascade of disappointment and lack of leadership.
We began the new millennium with hope and joy as all the computers in the world didn't crash, the earth didn't stop rotating, but the stock market came unglued as the greatest bubble in a generation popped. Plus, there was the attack on 9-11 and a couple of wars.
It wasn't supposed to be this way.
The Sky Is Falling
In April 1999, Pantone announced its color of the century as Cerulean or sky blue for a variety of reasons, including a reflection of the past and an exciting future (see sidebar). Pantone pointed to the psychological impact of gazing at the blue sky and that sense of peace and tranquility it brings to the human spirit. Essentially, we would be looking for solace in a new high tech world and that meant keeping our heads to the sky. Here's the thing, we look at the sky and it looks like it is falling. In fact, it is falling, and it's one thing you could get bipartisan support on, but the reasons it's falling are where people disagree.
I abhor the notion that successful people are the reason for this blue phase in American history, and that somehow government-forced redistribution of wealth is the solution. In fact, I think that would be the dagger in our soul and turn the skies black. This is really about the West in general, after a remarkable run of dominating the rest of the planet resting too long on its laurels and making assumptions of future success without planning for future success. The crazy thing is we don't have the guts to do things required, so future generations have a chance at greatness. In Europe, there is a massive backlash against austerity even in places where it's been in place for a month or so.
These Europeans understand how dangerous and selfish their actions are for their children and how conditions they leave for them will make their lives worse, not better.
It's amazing how much more confident the Chinese are for their children than we are in America, and yet, the only answer we get is tax the rich.
Our Own Private Greece
Governor Jerry Brown of California took to www.youtube.com to push for even higher taxes after it became clear revenue assumptions for Caifornia were wildly off the mark. Previously, the state told the world its budget deficit would be $9.2 billion, that was in Janaury, now the number is $16.0 billion. The governor blamed everything except mindless spending. California was once the Golden State, and if you are a Hollywood star, Silicon Valley engineer, or just arrived from a thrid world country, it's still the land of milk and honey. For everyone else, it's the land of broken promises and dashed potential. Actually, those in the "other" category have been moving out of the state in droves.
I'm talking about smart, innovative and productive people leaving to the tune of 850,000 between 2005 and 2009 and being replaced by unskilled immigrants and babies.
The solution from Governor Brown may sould familiar:
Increase taxes on incomes over $1.0million to 13.3% from current $10.3%
Increase taxes on households above $250,000
Increase sales tax to 7.50% from 7.25%
California already has the highest taxes for individuals and sales, and sports an A- credit rating. There are too many promises and too many obligations and too many pipedreams like the high speed rail that Governor Brown insists should still be done.
Do We Love our Children
In Europe and America, there's a growing feeling of hysteria
Conditioned to repond to all the threats
In the rhetorical speeches of the Soviets
Mr. Krushchev said we will bury you
I don't subscribe to this point of view
It would be such an ignorant thing to do
If the Russians love their children too
In his anti-nuke song "Russians" Sting took on the Russians and Ronald Reagan, but the fact is, Reagan won the Cold War with steel determination. These days we hear talk of doing things to make life better for our children, but we keep doing the same stuff that will make their lives harder. The results from the Boston Consulting survey say it all-in nations where debt is out of control, unemployement is sky high, and the population is aging rapidly, they scream about the pain of austerity while admitting life will be touger for their children.
I just don't think people care as much or are willing to sacrifice as much as previous generations.
The market limped out of yesterday's session, but well off the lows. Today, it should get help from an Internet one-two punch. Groupon (NASDAQ:GRPN) may not be a Ponzi scheme after all and Facebook isn't having trouble getting people to buy its IPO. Groupon soared in the aftermarket on its earnings report that is actually becoming less and less transparent, and Mark Zuckerberg & Co. upped the IPO to a new range of $34 to $38 potentially making it worth $100.0 billion before the first shares change hands in the open market. Economic data came in mostly in line nothing exceptional but no disaster either.
The CPI results should encourage those praying for more Fed intervention.
The Facebook buzz is helping the market today as well.