Weekend Greetings to all,
Some talking heads are celebrating the Unemployment Rate of 8.9% since the number showed a contraction in the latest week. Yet if you look under the hood, you'll see gov't jobs piling up fast, as we predicted after Obama won. Census workers are being added to the tune of 66,666 per month, and are supposed to continue to smooth the rate through year end: http://www.mcclatchydc.com/251/story/67789.html CNBC mentioned many unemployed professionals are taking these gov't service jobs. Although helpful in the short-run, Capitalist Pig Bob thinks the American economy is being dumbed down at the expense of the real estate and credit crisis. A paradox unfolding for investors, traders, and lovers of free-market capitalism. This is not and will not be an easy market to trade, since the $3.4T budget will have 'positive' short-run social and fiscal effects, arguably. Because the stock market is a discounting mechanism, we expect volatility through year end (S&P 750 - 1,050), as donks work to pass their control agenda of nationalized health care, Cap and Trade, EFCA, and who knows what kind of economic mutations will result from TARP? Thus, the political component will continue to whipsaw the PFF ratio for the S&P from month to month due to pro and anti-capitalistic rhetoric and legislation. Capitalist Pig Bob does not think 60 donkey Senators, the likes of Nancy "Judas" Pelosi, will ever embrace American principles of smaller gov't and lower taxes. Just the opposite, CPB thinks we are in for a smoothing type effect in unemployment never witnessed before, as mediocre gov't jobs are created through budget deficit spending. This gargantuan Capital Hole will choke-off many healthy private sectors in the long-run. Isn't it ironic the gov't suddenly thinks the best way to prosperity is to spend borrowed money? That is exactly how the ongoing real estate/credit crisis began in the private sector. Do two wrongs make a right dear Sir and Madame Senator? The consequences of even creating such a deficit has never proved successful in modern history. Yet the paradox of this spend in the short-run will fool the masses in believing this administration. Fiscal conservatism demands lowering taxes on businesses and the American worker, not forcing them to adjust to a Big Brother playground. By the way, what's the latest news regarding the toxic bank assets? Perhaps CNBC is being strategically used by the scholarly Obama economic team to feed us anything they need to to rejigger America in their big gov't image. CPB would rather suffer and see the stock market fall than to witness a robotic society created as a result of a short-term hiccup. Understand the ease Obama will have to pass his leftist agenda if stocks continue to rally. Some Americans today believe Obama is responsible for this extreme short covering rally that is beginning to create real wealth. CPB cautions you to monitor your Senators and Congressmen/women over the next several weeks to months. Washington Post's highly respected political journalist, Charles Krauthammer, recently pointed out: Obama has a limited window of time to change this country by legislating his redistribution of wealth agenda. Are you cheering or telling your friends and family about what's happening?
2 comments:
Def telling everyone I know.
Now Orszag says the deficit isn't Obama's fault. What a joke.
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