The final days of a trading year run abundant with self-congratulatory notes of one type or another all pointing to how "they" got it "right". The reviews run from network TV to blogs and twits. Everyone who said anything at all during the year can have a claim to "getting it right" as some point or another, me included.
Yet what I would rather concentrate on is how you,I,everyone who can read this deserves congratulations just for sticking with it all year long. To say that this has been a difficult year for traders is perhaps an understatement; the markets dove the world over fearing reality and an uncertain future only to be followed by a market recovery surprising even the most optimistic optimist. It is a year where we've witnessed the world, and logic being turned upside down; where we witnessed triple digit deficits along with double digit unemployment and a weakened dollar. The world accepted them with surprisingly low protestation and by the 3rd quarter with enthusiasm.
We embraced a blind trust in governments as the only way to solve our woes and those in charge continued happily to push their agenda toward socialism in ever increasing degrees. The ones in charge know that if they give us a pain pill, we'll happily swallow rather than suffer in our own creation. We, on the other hand, gladly accepted the premise that, we will not have to suffer the consequences if we keep pushing our debt forward, in our continued belief that if it worked in the past it will surely work again. Thus, with larger and an ever ballooning debt the snowball was made so humongous that most of us can't even imagine the size, let alone the numbers, so our brains just block them therefore it becomes a zero. Hey, new math works! People are using it everywhere; you know them and hear them daily as we speak: a decade equals 9 years, a century equals 99 years; 4.4% unemployment is bad, 10% is getting better; and 2+2 equals whatever you wish it to be. Debt is imaginary, numbers are not important, what and how we "feel" is ever more important, regardless of reality; So it is that Capitalism became a failed model and Socialism a proven success.
I am certain that the USA Congress, the President, and the Courts will probably never have to face the consequences of their leadership, as it is not their custom to own up to any wrong doing. Blaming others is forever their game, and we, ignoring their role in making the rules and policies, continue to support their actions. Their past actions continue to prove the point, which we continue to ignore. Our leaders in government will blame everyone they forced their policies upon, rather than recognize their role in creating the atmosphere which made it possible. Take the case of the sub prime mortgages in which our policy makers never admitted their role, yet blame banks for their greed and now for tightening their loan policies as the reason for the housing bubble and collapse. The same sub prime mortgage policies which they forced on banks in the 1990's, continue decaying Freddie Mac and Fannie Mae because the rules were never changed and, as of just a day ago the government increased their guaranteed funding as a necessary step to saving the housing market from further collapse.
We continued our giddy faith in watching our elected officials getting ever bolder in knowing what is "right" for us, by sticking us yet with another multi-trillion dollar estimated debt via a Health care Bill, the consequences of which we shall not realize until well into and toward the end of the next decade, yet for which we shall start paying this coming January. Yes, that is the day after tomorrow, and to further make sure that we'll keep our place, our "caring" leaders are trying to disallow any changes, repeal or dismantling of any part of it.
Of course, I hope we are all aware that those in the hallowed halls of our governments and those who work for the same, are exempt from this so called "Health Care",as they are increasingly exempt from all their rules, policies, mandates and the consequences of them. For those wishing to have an example of what is meant by "some are more equal than others", look no further; it is a philosophy more increasingly practiced by our government,while they blame corporations of the same. The difference we seem to overlook: corporations have a market to answer the government has a people to answer. Interestingly, the government ignores the people more, than corporations the market.
The cost of all of this manipulation should not take a math genius to figure; as with all cost estimates by a government that wishes to do us "good", it is not necessary to the equation and as it will become necessary for your own welfare,therefore accuracy becomes irrelevant. In other words, bend over, "Here is to your health!". As with Social Security, Medicare and Medicaid, along with cost of federally run Education, it will be non- consequential to our future, as they count on us not to be around much longer to protest and count on the newborns to be well conditioned to the costs and entitlements. Remember the "benefits" are not going to be realized for several years, so be patient, they know we'll get used to it and then like with all other socialized entitlement bills,we'll want to feed at the troth, as our "right".
But we should not worry, after all they can print more money, forget the dangers of inflation, deflation and suffocation! We can survive, as we have done in the past, we just need someone to tell us what to do, to save us. Yes, that is what we want a government saviour to forgive our sins and our trespasses; to give us leave of our senses.
Here's to 2009
Happy Trading, Living and Dancing and a hearty Congratulations for a year well survived!