OK, so now Obama has gone back on what he's been saying over and over again, that bankruptcy for GM basically won't happen. Again a politician double talking = shocking!
I have to say, its rather disturbing the road we have gone down and I fear it will only get worse. NY is about to pass a bill taxing anyone making over $300,000 extra.
These are very dangerous precedents they keep setting all out of FEAR and as you know FEAR = False evidence appearing real.
I don't mind the excess tax except it works against commerce. It is absolutely ignorant and fear based to prosecute sucess. We should go with a Flat Tax rather than do what we are doing. At least that makes sense. I'm a small business owner, if I get squeezed I have no choice but to lay people off because it cuts my margins down to nothingness potentially. I'm one of 100,000s of small business that are impacted by these things.
I was watching video on Bloomberg this evening showing riots in Europe where they destroyed anything representing wealth. The rhetoric out of Washington is very dangerous, it fuels this fire that gives creedence to the notion that wealthy people are bad and should be punished.
I am in process of writing an article about the foolishness of the path we have embarked on. We simply can not continue down this path without putting our entire political and economic system at severe risk of complete breakdown. Anarchy feeds on rhetoric and chaos. When people are depressed, or angry (they are on the same plane) its almost always easier to look outside oneself, and to cast blame, often casting a net that encompasses whole groups. Racism is usually about self hatred. If one is content with onself its very hard to hate others. Much terrorism springs from poverty. Not all, but a lot of it.
Much of the rhetoric coming out of Washington, unfortunately, is based on their own fears. Fears for their jobs, fears that they will face the nations wrath. Pinning "Wall Street" as though that's actually something that is one big thing is just as ludicrous as racism. Not all the people who work on Wall Street created this, in fact probably 99% or MORE had as much to do with it as all of us in a culture of consumerism. Yet politicians speak of it as though its the birthplace of Lucifer, or greed. That's simply not true, it's a ludicrous picture. Yes, there are pieces of it that are certainly liable, but targeting everyone just creates anarcy and encites hatred to the point where many people who got bonuses at AIG fear for their life.
What do I know about it? Some of you know, when I first started and made my reputation I got death threats in 2000 and 2001. 16 of them in fact. And, some threatened to fire bomb my entire family. Why? Because I was on CNN FN saying that the market was going to go down - WAY WAY WAY DOWN, and since I was right and I was on TV saying it was going lower, some people who lost a lot of money blamed people "like me" for their losses and their fear and misery.
So, yeah, I know a bit about it. I talked to the cops and the FBI, and hired body guards. Some people are just plain nuts and some get nuts under duress. We're all humans, and the ultimately truth is that we're all in this thing called life together. It is very disturbing that this administration, that was voted in under the auspice of bringing people together seems to have forgotten that under the duress of the reality that they stepped into a hornets nest.
Right now this country, in my opinion, needs to buckle down and really deal with reality and instead of just acting and reacting, take a deeep breath and take 30 or 60 or 90 days where they don't do a thing. We keep hearing this nonsense rhetoric that if they didn't do this or that that the whole system would fall apart. I find that hard to believe, as do many brilliant economists. FEAR mongering from Washington has created their own reality. Yes, look what happened when they let Lehman fail! This is such BS its beyond belief, and yet everyday this is quoted as though it is a fact. What a crock. It's self serving propanganda at it's finest.
Now Obama says that it might be best if GM declares bankruptcy. Yeah? Well, duh! But, you jokers were the same jokers who for months now have said it would be HORRIBlE if GM went bankrupt, that it would be devastating to the economy. Please, stop with the lies and deceit, the American people can handle the truth. By constantly lying you are creating a powder keg that is going to explode at some point, you are fanning the fires of anarchy, not avoiding it. Sooner or later we have to pay the piper. Let's pay it NOW and build from it, instead of trying to enable a system that is very very broken. Instead of acting out of FEAR, why not act out of honesty and deal with the citizens of this country as adults who care and are scared right now. Telling them lies doesn't do anything but give them false hope, and I believe false hope leads to disaster. Reality is much better, it may not be easy to digest but at least it's fixable. You can't fix something that you are constantly told is ok, when it isn't.
As I write this the futures are down about 2%. I'm wondering how in the world anyone is dumb enough to own bank stocks, or REIT's or insurance stocks when the lie about not Nationalizing may just come to pass a lot sooner then most believed possible. If they can lie about GM, what makes anyone dumb enough to believe they aren't lying about the banks?
Hopefully you got on board SRS Friday, I did. I think it goes back to all-time highs in the not too distant future, but we'll see soon enough! I'm a trader, so I'll get out of it if we start to move the other way, but ultimately I think commercial real estate is gonna be tough to go up.
As always, I hope I'm wrong, but I would rather be a realist then live in false hope. I've gotten so many emails asking me if Obama and Guithner have saved us.
Saved us? No one's saved anything, that's one thing you can take to the bank. You invest in this market for anything other than a trade, you are a SUCKER. How's that for clarity? Besides, if you make too much someone just might hate you for it and threaten you, too the way the rhetoric keeps coming from Washington. Why don't they look at Goldman Sachs? It's time to really investigate this stuff, and I'd start with Goldman, to me they are culprit #1. Did you see the article in Forbes about them probably manipulating the oil markets? Again, I do not believe it is a coincidence that GS and MS are the two left. GS was about to fail as well and the government intervened.
Keep your integrity my friends and don't believe everything you are told. This country was founded and will ultimately get out of this mess with ingenuity, and with capitalism. With rewarding hard work and thinking outside the box. If we make these things that this country was founded on "evil" and punishable God help us all.
And, thank you all for your well wishes, I'm off for another couple of weeks unfortunately, I should be ok, but am still in a lot of pain. Hey, it's a lot better then being fire bombed, though!