Random Thoughts from a Conservative Mind

‘Market Pricing’
It’s amazing to see that the same ideologues who formed the policies that created the economic crisis are now in charge of 'fixing' it. Most Americans are do not understand HOW we got here; however, everyone seems to be more interested in all of the new, creative ways to artificially keep home prices and stock prices high. This mindset is what got us into the problem in the first place! The market knows better and is pricing in all of the future tax hikes, government intervention, isolationist policies, and asset devaluations that are coming our way.

‘Class Warfare & Investing’
Since we're going to a Chicago-style approach to governing the country, expect the duck and weave from investors in an effort to save their money and more cautiously invest. What the class warfare-types out there don't understand is that you need the 'rich folks' to invest their dollars in the market before the 'poor folk’s' 401K balances can go up…if you punish the ‘rich’, as Obama wants to do, you get the results we've seen over the past few months: an uncertain market that is pricing in higher expected costs of doing business. The trickle down is that everyone suffers more in a socialist-driven environment.

Admittedly, certain industries the government deems acceptable will benefit, at least in the very short term...the market will pounce on these industries fast, so it’s helpful to know just what Obamasan is going to do if you want to make money in this market going forward. Expect a lot of volatility…right now, we’ve got lower than average volume coupled with a derivatives market that can drive stock prices violently one way or another…proceed with caution if you proceed at all. Personally, I’d look at maxing out tax-deferred instruments, look closely at municipal bonds, and do a lot of praying.

‘Obama’s Motives’
The way I see it, an Obama administration will be more concerned with picking specific winners and losers in the market, while at the same time punishing some of the most successful industries in an effort to further specific social and economic agendas. Obama himself said that the Constitution does not go far enough with providing the Courts the authority to redistribute income (this is a social agenda, right?? The ‘tax cut’ for 95% of Americans clearly ties into this agenda). This message may have helped to win votes, but it has NOTHING to do with helping the overall economy whatsoever. I predict that Obama will have to rescind his tax cut proposal, citing the economy as the primary reason. Hey, it worked for Clinton.

Other Dems like Pelosi have said that they can't worry about offshore drilling because they're trying to “Save the planet” (if this isn't putting ideology before the people, I don't know what is). These policies, in my view, are driven primarily by guilt and go far beyond the tenets of even socialism...this stuff borders on sheer delusion.

Even though crazy people have elected crazy people to some of the highest offices in the land, certain industries in our economy will nevertheless bounce back under an Obama administration (yes, it's possible). When they do, they’ll bounce back hard, even violently in some cases. When will this happen and what are the industries? I dunno, and neither does the market at the moment. There's too much uncertainty right now to figure this out...this is why everyone is running for the exits.

To make everyone feel better, everything will likely get better at some point...wow, that was easy...pointless & completely arbitary. Here's another one: by the time the new Obama puppy is completely potty-trained, we'll see a stabilization in the markets. Wow, that was easy too...I should be an analyst.

‘Emotional Election’
The American people may have voted on emotion for this election; however, it doesn't take a rocket scientist to know that if you take enough money from hardworking Americans, they'll eventually vote you out of office. Americans have already shown that their support of environmentalism has its limits...I estimate the support threshold of environmentalist-waco policies is around $4.00/gallon, unleaded.

Let’s face it…environmental agendas cost a lot of money...I don't believe the average American family is willing to pay much more than they're paying now to implement these agendas, no matter how guilty they feel. The race guilt has been assuaged for many liberals with the election of Obama, so why should they do much more in the future to promote environmental policies? If supporting these policies means higher taxes, lost jobs, or lower wages, then wait just a dog-gone minute...they didn't sign up for this much pain...they thought they were getting a check. The bottom line is that everyone has their limits...the Dumb and the Ignorant are no exception.

‘The Misled & Misinformed’
It’s amazing to see that the same ideologues who formed the policies that created the economic crisis are now in charge of 'fixing' it. Currently, most Americans are not talking about WHY we got here or even understand HOW we got here, but everyone is definitely concerned about all of the new, creative ways to artificially keep prices high so that they can keep all of the stuff that they shouldn't have bought in the first place. This backwards mindset is what got us into the problem in the first place! The market knows this and is pricing in all of the future tax hikes, inevitable government intervention, and general uncertainty surrounding a President who believes that reparations for slavery should be paid by today's taxpayers.

“Recommendations”
1) Pray often for the country
2) Find every ounce of humor within every pound of stupidity on display
3) Turn off the television for four years
4) Buy a puppy…you’ll be happier

FMC