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  • Daily View 1/30/2012 : We Need Lower Wages, More Gridlock And More Spending! [Edit or Delete]0 comments
    Jan 30, 2012 12:53 PM | about stocks: AAPL, UGA, GOOG
    This is the longest daily view I will ever write to makeup for two weeks of having not written anything.

    The message to Washington, private equity firms and CEOs: More spending and lower wages, please. No to class warfare, yes to creative destruction and productivity.

    TLT rebounding huge yet again. The smarties will look for any excuse to buy treasuries because the US dollar still number one reserve currency. Foreign bond holders, unlike the liberals on the blogs, still support congress, the fed, and the free market and want to see America succeed whereas the liberal left on blogs like Zerohedge, Huffingtonpost and Business Insider yearn for crisis, failure, 'dollar dumping', trade wars, etc.

    There is neither hyperinflation or deflation because we're still in a Goldilocks economy. Peter Schiff, who has been predicting hyperinflation since 2009 on his video blogs, is still an idiot.

    Washington's gridlock is a blessing for Wall St. because it means taxes aren't going up for a looooong time. Policy makers (many whom own stocks) know that raising taxes is bad for the economy, but also detrimental to their re-election prospects. There's no need to raise taxes when according to the bond market, deficits still don't matter.

    Apple reports blowout earnings for the 200th quarter in the row. Facebook IPO will be worth $200 billion. I'm still waiting for recession to hit the tech sector lol. Still waiting for that media generated debt crisis to take hold lol.

    Update on the housing market: my home went up even more this week. No bubble in Silicon Valley real estate.

    Euro, gold, gas prices, oil, and stocks rallying together as I predicted would happen numerous times on this blog. High unemployment and poor housing market are the main excuses Bernanke is using to justify never raising rates again. Even as US GDP grows at 3% a year (which is still a greater growth rate than any country in the Eurozone) interest rates still wont go up due to America's reserve currency status. That's the real reason why rates will never go up, not 'slow growth' and 'headwinds'. The economy is growing just fine, and even Bernanke knows this, but wont admit is because then he would be pressured to raise rates.

    We're going to have nosebleed living expenses for things like health care, education, food, gas, and insurance for the remainder of the decade due to permanently low interest rates, speculation, and booming BRIC growth. The fed is forcing mainstreet to spend more on these inelastic goods like food and energy, and this is beneficial to the economy and stock market because money used on these inelastic essentials is better than money hoarded in a bank. Consequently, the Q4 GDP came in huge, profits and earnings still stronger than ever, stocks are surging, and personal savings rate fell to multi-year lows - evidence of the efficacy of Bernanke's crusade against saving. This effect is further compounded by inflation lagging wages, so for the sake of profits let's hope wages don't go up too much. Lower wages is good 4 the economy.

    According to recent polls, Obama's efforts at class warfare are failing as Romney polls ahead of Obama in key battleground states like Florida. Romney is such a great front runner he's already considered to be the president.

    Not surprisingly, the biggest advocates of consumer regulation and higher interest rates are the blogger libs. There are the same losers that want Americans to put their money under a mattress so that the economy contracts. Thankfully, the Government will continue to subsidize risk taking with tax payer dollars and discouage hoarding via low interest rates.

    Mitt Romney is still the undisputed frontrunner and stocks are loving this because having Mitt as president would be great for the economy, as we all know. Ron Paul finished 4th in SC, which was such a poor showing that even the nutty left realized that trying to build a conspiracy theory around it would be fruitless.

    It's time for an open-borders policy because wages are still too high for America to competitive in a global economy. Let's make the pie higher by making jobs more few, wages less, and regulation more less. In the 90's and up until 2008 we had a labor glut of too many Americans doing slow and overpaid work. The economy is better off with these useless and redundant jobs either eliminated, outsourced, or replaced by technology. 9% unemployment is not hurting consumer spending, either. The productivity gains due to a more efficient, leaner, hard-working workforce is great for stocks, too.

    Even though I'm a republican, I don't view the government or the fed as an enemy. Policy under George W. Bush, who I consider to be the most effective and pragmatic president in recent history, was a resounding success. There have been no domestic terror attacks since 911, no bank crisis relapse since TARP, stocks are still making multi-year highs, Facebook is going to be the biggest IPO ever, and profits and earnings for large cap companies have been blowout for every quarter since March 2009. Sometimes it's OK to have a bigger government if it promotes pro-growth policy. Maybe the military industrial complex isn't so bad after all. The job of congress is to pull out the stops in the event of crisis to keep the economy humming along as smoothly as possible, not to capitulate to the whims of the liberal blogger losers that want higher taxes and more regulation. So Keep doing nothing, congress. Don't do too much to rock the economic boat. A do-nothing, gridlocked congress is a good one as far as the economy is concerned.

    The bond market is signaling to policy makers to spend with impunity. Let's give our unconditional support to the fed who enabling this global prosperity boom via quantitative easing programs. The S&P 500 is 100% since March 2009 lows while congressional approval ratings keep making news lows, evidence that policy that in unpopular with mainstreet is good for the economy. Congress wants wealth to be created, not redistributed or destroyed. I laugh condescendingly at the losers that tweet hashtags like 'fuck Washington' and 'fuck congress' in their attempts to change the system and be heard. These tweets are completely ignored outside of the echo chambers of the liberal blogosphere.

    Let the markets work, get the government off the banks and off Wall St.(except when it needs a bailout on occasion).

    We should put in place policy that enables wealth creation for the best and brightest Americans today, not class warfare.

    A recent poll has shown that Fox News does provide a fair and balanced coverage of the news. Fox news viewers tend to be smarter and better informed than those who get their news from other networks.

    Hey, liberals, still waiting for a relapse of 2008? Still waiting for crisis? lol It ain't gonna happen. TARP =huge success. European rescue fund = huge success. History has shown that bank bailouts and liquidity infusions are the most efficacious forms of spending, providing the most bang for the buck in terms of wealth created for each dollar spent. TARP only cost $700 billion but created trillions in wealth indirectly via the stock market and the profits & earnings boom that shortly followed. Three years after TARP the economic and stock market boom rages on, unimpeded. Oh and by the way, the US treasury currently estimates that bank programs within TARP will ultimately provide a lifetime profit of approximately $20 billion to taxpayers. Can the same be said about the liberals' various welfare programs? No way. Social security is going broke. Yes to bank bailouts, yes to liquidity; no to job creation programs, no to regulation, no to department of education, no to consumer protection.

    Don't fight the fed, don't fight profits & earnings, don't underestimate the propensity of the US consumer to spend despite all the doom and gloom headlines, don't bet against America.

    Oil $130 soon, gas $4.30 gallon soon. (If you read some of my earlier articles you would know that surging gas and oil prices doesn't pose a threat to the economy).

    Like it or not, the consumer is far from dead and stocks will just keep going up. America is an export powerhouse, has the ultimate reserve currency status and the best demographics.

    In addition to their want of failure, crisis, and social upheaval the moonbats live in a state of fear - fear of the one percent, fear of the fed, fear of the church, fear of the government taking away their constitutional rights, fear of loss of competitiveness to China, fear of debt, fear of financial instruments, fear of outsourcing, fear of the dumbing down of American schools, fear of technology and automation, fear of the TSA, fear of Fox News, fear of the free market.

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