Tuesday, July 20, 2010

SECULAR BEAR MARKET

We are in the midst of a SECULAR CYCLE, possibly one as long as 70-80 years apart, last seen in 1929-1932.

We can and will get past this but how long it lasts and how much pain depends on the policies implemented to combat it.

You saw what happened after the 2000-2002 Bear was defeated with 1% interest rates and ultra loose FED policies, it JUST created an even worse BUBBLE which when it popped in 2007, resulted in the worst economic slide since the Great Depression.

WHAT are they doing now or have been doing? MORE OF THE SAME (not going to cuss today).

But now we have 0% rates, $TRILLIONS SPENT BY GOV, but the return has been putrid, so why do they continue with these failed policies?

Like it or not, low tax rates, business friendly laws create environment for job growth and spending which creates big tax and revenue streams for governments, NOT MAKING GOV LARGER, NOT BY RAISING TAXES, NOT BY stiffling small business....very little has been done to ASSIST SMALL BUSINESS.

For instance if the GOV was to loan ME directly JUST $500,000....I could protect 20 jobs. What does the GOV get in return for their $500K otherwise? AM I a viable business? will I pay it back? I think so, come look at my books and see what changes I have made.

Below 3% on a 10 year NOTE is not saying whoopie to me.

If ANOTHER leg down is coming, those teetering will go down, and 9.5% unemployment rate is BOGUS and masks MUCH more pain. 99 WEEKS a record for unemployment payouts, and they want MORE? how much will that cost we ain't got? Obama is playing to populace vote, another political move of no substance....as he sees GOV as the answer NOT PRIVATE SECTOR......

I fear there is NO hope of CHANGE that is good, until he is not sitting there with his crown going down as worst President since Jimmy Peanut Farmer Carter and G W BUSH! (Conservative my ass)

D

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