Wall Street might think its right, but its really turning left, and a left turn isn’t good for Capitalism.
Our investments are doing very well !
The Dow is currently holding above 10000.
And this is a great achievement when you compare it to last March, but very sobering when you realise that this is where it was in the Spring of 1999. This kind of progress could drive a sober person to drink.
When you factor in the fact that the buying power of the dollar is only 70-75% of what it was in 1999, a case could be made for investors being down 25-30% during the last decade.
“Hot Dog! Are we running backwards, or what!”
In real terms, almost 15% of us are unemployed, and home prices continue to fall .
Foreclosures are increasing at close to a 5% rate, and the numbers are growing despite various government sponsored and ineptly initiated bailout plans.
What will the future bring? Are things really improving, or is this a sham perpetrated with mirrors.
The Obama presidency has hit some serious bumps in the road, and his future as a viable President is being affected.
A case in point is the Governors race in New Jersey.New Jersey is a traditionally very blue state, and one that Obama carried by better than 15% .
Despite a highly uninspired campaign, Chris Christie the Republican candidate is running neck and neck with Governor Corazine.
The panic in the Democratic ranks is evident by the parade of heavy hitters arriving in New Jersey to try and boost Corazines reelection chances.
In the last week, we have seen Vice President Biden, Former President Bill Clinton, and now the President himself, stump the state in an attempt to engender excitement for Corazine, yet the polls continue to signal a dead heat.
This is not a good omen .
A Democratic loss, or even a close win is a repudiation of the Obama policies, and an abandon ship warning from the moderates in his party.
Obama is stuck in a quandary. All the money spent, and the promises made, leave his presidency in a very difficult position.
Going forward is impossible and going backward is unthinkable.
He can’t back away from his promises to rescue the U S economy, if he does the whole country will loose the glow of hero worship, and the historic election will turn into quite a different meaning.
On the other hand, going forward with his expensive rescue and stimulus programs will take $ trillions additional. Since he doesn’t have the money, he will have to borrow or print more .
He has already used up half the trees in North America printing all this money so far. Who knows how many more trees will have to be sacrificed to the voracious printing presses.
The best hope for a successful resolution for the President would be an economic recovery.This way Obama wouldn’t have to do anything, and he would be able to retain his mantle of invincibility.
That is not going to happen, no matter how much the media and the insiders try to run this rally.
“Why not?” You ask.
If you have followed my writings you already have the answer.
Our system is broken, the recovery is an illusion, and the reality is that we are headed into a much more serious recession/ depression.
The consumer credit economy is dead.
The banks aren’t lending to consumers, and the consumers don’t want to borrow anyway.
Consequently demand is shrinking.
Wall Street has managed to keep its rally going by posting higher profits , which they trumpet, yet lower gross sales, which they whisper.
They call it reduced overhead, but what they mean is employee layoffs, and shrinking benefits.
Rest assured, this recovery is a fraud, and the illusion for recovery is a sham.