Wednesday, November 21, 2012

the O economy stupid

AT's Monty Pelerin points out Economic Disintegration is Almost Here

"Many businessmen hung on, hoping for a change in the madness that passes for economic leadership and policy. These hopes were dashed with the re-election of the ideologue driving the madness. Obama won the electoral college, but not the confidence of business. They are just beginning to cast their votes and it does not bode well for the future."

"While the masses exult in the continuation of their food stamps, cell phones and other booty, the real story of this election is yet to be told. The nation is about to find out that policies and elections have consequences more important than free stuff."

"The war against private enterprise can no longer be denied. President Obama's re-election ensures that it will continue and likely accelerate. The makers are beginning to give up. The takers don't have a clue. Soon the country is going to get a real-life lesson in economics. TANSTAAFL (There ain't no such thing as a free lunch) is about to be learned."

Check out this site: DAILY JOB CUTS !

While you're hanging on to the edge of your seat riding the roller coaster next couple years: some financial advise from CFA Dan Amoss at the Daily Reckoning: The Future Economic Destruction

"All government-directed economic activity grows at the expense of the private sector. And the election suggests that government coercion will drive even more U.S. economic activity in the future. This is a shame, because freely adjusting prices, competition, and innovation elevate living standards. Mandates, price controls, and subsidies — coercive actions — depress living standards. Quality falls. Shortages develop and persist."

"The Fed’s goals early on in the crisis focused on supporting the banking system at the expense of savers. Now the Fed will be pressured, threatened, and eventually forced to monetize ever more U.S. government debt — all to finance a government budget that the private sector cannot afford.

As a proponent of small, affordable, sustainable — there is a nice buzzword — government, I lament that voters have chosen a government stuck in a destructive, self-reinforcing cycle. Time will tell if this cycle (more government, market failure, more government, market failure…) can be stopped.

The future political environment will multiply the risks facing investors. But there will always be opportunities for contrarian investors on both the long and short sides of the market…

On the long side, look at the best-managed gold and silver mining companies, and companies providing “shale fracking” services and equipment for the American oil boom.

On the short side, look at overindebted companies that, in order to survive, need consumers to continue overspending. Also, look to short companies that pay high prices for raw commodities and resell processed goods into a depressed economy."

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