For a very long time, I have been saying that regardless of what the spin heads on Wall Street, CNBC, and Bloomberg say, not only does the world economy suck, it will continue to suck, for a very long time.
Yesterday it was announced that US GDP rose more than expected, fueled mainly, according to Commerce Department, by consumer spending.
I am sure there were several consumers that actually did add to the jump in the GDP. I know in my area, there was one day when the schools were out, and I'm fairly certain I saw a couple of teachers, highly paid as they are, headed into our local Walmart.
But a little more digging, revealed that as much a 0.7% of the increase, was attributable to a 9.6% increase in Federal spending. It isn't that this information was not reported, it was. It's just that American voter is paying far more attention to the pencil dicks of Wall Street, instead of their own common sense.
Had the American voter been listening, they would have learned that Spain's unemployment rate has now topped 25%! Admittedly I have no idea how this will impact the world's demand for goods and services, but still, 25% of the work force without work is a staggering number.
American voters would also have learned that the Bank of Japan is still in monetary easing mode with the Japanese government announcing stimulus measures of JPY 750 billion. If the world economy is rebounding as President Obama's re-election ads say, why the need for more stimulus?
The Commerce Department also announced last week that new home sales increased to an annual rate of 5.7%. I personally think it's a bullshit number that will change radically after the election, but if it is true, then why are their so many construction workers out of work?
Other news reports that nobody seemed to notice were retail sales in Cypress declined in August, Lithuanian retail sales declined in September, French consumer confidence was down for the fifth month in a row, but French manufacturing companies see increased demand for their products in the fourth quarter.
I gotta say, that with all of the French folks that make any substantive money saying just the opposite as they move out of the country to avoid the coming proposed personal tax increases, it all sounds like bureaucratic slobber speak to me.
So what it the answer? How do American workers, the ones that don't have money to lose listening to the continual crap that comes out of Washington and Wall Street, move toward their own real economic growth?
Simply put, they can send a huge message a week from Tuesday.
Certainly the election of our President is a big deal, but the bigger deal is the number of local and state issues that voters will get to vote on, including in some states, who will serve in the Congress.
I spend the vast majority of my Wax Ink week, determining what I believe is the fair value of a company, including, at what price I would buy and at what price I would sell.
The idea is to provide interested folks with a base point from which they can start their own research. Hopefully those interested will come to a conclusion similar to mine, but regardless, they will have taken the time, put forth the effort, to form a conclusion that works for them.
I hope the electorate will stop listening to the spin doctor din, and spend an honest hour in quiet consultation and reflection with themselves, deciding what they need in their own lives and how they want their futures to be.
In short, just as I hope folks do before they invest, I hope folks will do their own due diligence before they vote.
A car whizzed passed my yesterday and on the back window it said TOLO.
Curious, I did a Google search to see what this TOLO meant. As it turned out it is part of the new vernacular, the new lingo, the new speak. It means Tits Out, Legs Open, and is, I think, supposed to be a description of the female population at a bar, a club, or a party.
Let's forget the first two letters and concentrate on the last two, the two those running for office are once again, counting on.
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.