More theme businesses/stocks are in order. This pick was rooted in the oft dirty politics of money & banking. POTC promises to identify more political stocks like this before the PC herd of Wall Street analysts.
The Psychology of the Call blog's Capitalist Pig Bob (CPB) is very concerned with the current political path that America has forged. The needle of the American free-market compass must be recalibrated back to normal ~economic cycles~, making the 57th quadrennial United States November 6, 2012 Presidential election a Valley Forge moment.
George W. Bush and Hank Paulson started the bailout snowball, yet the current Administration's policies have dislodged America's free-market psychology and placed it on a precipice.
It is widely known that AIG and the ratings agencies were inept and did not see the subprime crisis coming. But then rewarding bad private-sector decisions whether at Goldman Sachs, Countrywide Bank, Merrill Lynch, AIG, or Lincoln National has prolonged the private-equity freeze and the return of what must be normal ~economic cycles~
The current U.S. Administration has placed us on a dangerous path. CPB is concerned that after a couple of left-field events occur, American citizens will only then experience how many precious freedoms they lost through this fiscal, monetary, and political stupidity of our leaders.
Herman Cain reminds us that we Can Only Save the Savable. And the brilliant forward-thinker Newt Gingrich remains the model of a politician that we learn from, follow, and support. Newt's wisdom's are timeless & patriotic. There is a video at the end of this piece that powerfully explains the socioeconomic crises we face today, and how historic the 2012 election will be.
Repealing Obamacare, revamping Medicare (especially part D passed on George W. Bush's watch), Social Security, and parts of the Dodd-Frank bill are keys to our 'American' future.
America must condemn a kumbaya-welfare state of mind and all past and future bailouts, stimulus packages, and the central bank traps of quantitative easing (QE) and the flawed Zero-Japan interest rate policy. It's not the cost of money that's the problem, it's lack of confidence in a 'system' that has rewarded failure with bailout and stimulus then raised regulations to paradoxically prolong this psychological freeze.
What we must allow is an economic forest fire to burn the excess back to ash. The excesses created in housing and banking as a result of decades of bad legislation and central bank policies need be allowed to die in a natural economic cycle for a stronger system to root. If we continue to print money to pour water on this economic fire, we will solve nothing.
We must embrace bankruptcies in order for risk-takers to get excited and re-enter the market on a long-term basis. Simply switching private-sector debt to government balance sheets will loop to economic enslavement and slowly morph our Too-Big-To-Fail economy to a 21st Century form of Social-Crapitalism.
Pimco's Bill Gross and Mohamed El-Erian have referred to this cycle as the 'new normal', but we prefer to use the term the 'new abnormal'. How else could we describe an environment where the government overreaches with regulations, taxes, and fees, and then is called to 'Superman Save Us' after some left-field event that sends GDP deep into the red and an official recession? Yet we will likely fall into the longest depressionary cycle if Obama is re-elected in 2012.
The government must never play the role of economic Superman. Economic cycles must experience ~peaks and troughs~ with the least possible amount of government interference. It is dangerous when this 'new abnormal' cycle has convinced some citizens that Wall Street is the problem and little gripe is made of decades of failed legislation and entities like Freddie Mac and Fannie Mae.
The occupy Wall Street movement is a sad reflection on the class warfare cord repeatedly struck by this partisan Administration. Never have I witnessed a U.S. President who berated Wall Street as much as Obama. Pig shame on this overbearing Administration.
America must embrace private-sector bankruptcy again as a normal and healthy economic phenomenon, but especially in the banking sector where the foundation of free-markets must have that element of failure to rebuild confidence, re-root with fresh capital, and experience new growth.
It's growth that has been stymied by grubby government hands and Bernanke's Fed in my porky opinion (impo). As Reagan taught us:
Government is not the solution to our problems, Government is the problem.
Capitalist Pig Bob : /
As Newt passionately explains after the 7-minute mark, 'America was created by people who were willing to say 'Victory or Death' while marching across an icy river in burlap bags and in the middle of a snowstorm. We are going to have to find those people again today'. http://www.youtube.com/watch?v=qtjfMjjce2
As Newt passionately explains after the 7-minute mark, 'America was created by people who were willing to say 'Victory or Death' while marching across an icy river in burlap bags and in the middle of a snowstorm. We are going to have to find those people again today'. http://www.youtube.com/watch?v=qtjfMjjce2
