I don't like to write negative articles. I like to write things that even if warning of a negative, there are solutions for the outcome. Everything I've written is in that vein, yet now I increasingly find that I am coming to a point of facing the biggest challenge in my life. A struggle to stay positive.
I look at the markets each morning and I'm actually surprised to see a positive attitude and a positive outcome on the boards. I like green a lot, yet I am thinking it should all be red. After all, the blood of the USA is being spilled everyday.
The blood of the the soldiers of the War of Independence is being spilt again everyday by people in Washington that have no idea what being not free means. They are so fast and furiously changing this country that the Constitution is not even regarded with a passing glance. I hear the news every day; I turn it off, yet when I listen to the radio, I hear it again. I look at the markets and the disconnect is uncanny, therefore I can only come to one conclusion. I am witnessing the killing of America and everyone is clueless.
I know that's not true. I know that many citizens are not clueless and many traders among them are not either. In fact traders tend to be most savvy as to what is happening, yet I do believe that many do not wish to add things up; connect-the-dots. It's easier not to. It's hard because daily we are faced with another onslaught of changes proposed, which Congress folds into writing and accepting, and shoving down the throats of the rest of us. "Like it or Not". It's like a feeding frenzy, and the elected government officials are at the trough. What's interesting is that the government calls Wall St. greedy, yet they are the ones who can't get enough. This government and administration can't stop themselves from taking more and more control; and doing so they are killing those who have built and assured their prosperity, one by one.
The deficit is tripled since February 1st. Yet the market is rallying. I remember people/news being outraged at Republicans spending too much in the mid 1990's. The market was down. Where is the outrage now?
There's a lag from Washington to Wall Street. It's now about 4 months. It used to be longer but with the modern communication abilities it takes less time. Of course the route is not direct; it goes through Main Street because in reality, it's people who make Wall Street tick,.
Wall Street reacts to the people, not to Washington; it is driven by what the people do, earn, lose, buy, sell, all of course a demonstration about how they feel. That is why the business media is obsessed with how the people are doing; prosperity being important because without people investing, there's no Wall St.
Main Street IS Wall Street regardless of how much this administration tries to separate it.
The greed of this administration becomes evident by their actions. They want to kill Wall Street so they can have people invest in them. It is what this President is asking you day after day. "Trust us", he says. "Let us take care of you, don't let that greedy bunch on Walls Street cheat you out of your money!" "Wall Street and the Businesses have failed you, capitalism has failed you, so give US your money and we'll take care of you." A Socialistic Utopia, that leads to suppression. Nothing less.
The narcissism flowing out of this administration is absolutely jaw dropping. The President and Congress is asking you to hand over your money despite the long history of government failed programs. There is not ONE prosperous business that was or is run by government. Even their cafeterias had to be outsourced to a private enterprise because it lost money; yet they ask you to turn your money over to them to invest for you. If you think you were scre*d by Wall St. you haven't yet invested in government.
Four months ago, the beginning of February, people were elated and mesmerized by this new administration. The new "Camelot" has taken seat; so now the Wall St. is still basking in the positive flow. By now, the taxpayers should be realizing that the $720 billion bailout stimulus plan passed at the end of February is an utter failure. The promised 8% cap on unemployment is far surpassed. More and more businesses are failing, never mind the housing, and they keep throwing more money out the window; just today with the $45 billion dollar clunker tax, to add to the other lengthty list. Anything government spends whether it it has funds for or not, is a TAX. Make not mistake about that! So let's give it a few more months and see if they are satisfied with how much they passed or will there me more.
My bet is that there will be a lot more. Government is not a business and they do not know how to run one efficiently but they are in the habit of spending money or better put, buying your faith, trust and most of all, VOTE. It's bad enough that the government engages in name calling to lay blame on Wall Street and the "rich" for all our woes, but what is worse is that many people bewlieve and repeat the lie.
Happy Trading, Living and Dancing