Monday, October 4, 2010

QE II...WASN'T THAT A BOAT?

So you are able to discuss this subject with a little more expertise at cocktail parties, I thought we might take a stab at it today. We have discussed for over a year now the STRUCTURAL collapse of our economy. In effect that means there are components of our economy that have been destroyed by factors that cannot be repaired by simple monetary and fiscal changes. ie. They are NOT "stimulateable". These are not cyclical inventory issues brought about by supply and demand imbalances.

Here are simple and clear examples. I use these because we can all recognise these. Education is structural. The dumbing down of our students, to me, is one of the more frightening aspects facing us. I won't propose a solution, but I will note some issues confronting it. We are in a global educational race and getting lapped like turtles. The rest of the world has very coordinated CENTRAL planning for their countries with targeted goals in achieving their needs. We are arguing about evolution and sex education in our classrooms still..... When the Russians put the fear of god in us in the late 50's, we put our heads together and had some of the greatest educational effort in our history. We surpassed EVERY country in the world and were number ONE for years. Now we rank 29th....thats right . So keep on "privatizing" education. You are going to reap the horn. Do you think the Cabal's kids are going to be your road and bridge engineers in the future. Do you think their kids are going to be the scientists busting their asses to develop the next polio vaccine? GL there

Manufacturing structural disaster and I quit for today. NAFTA etc. has provided our manufacturing base to be rewarded for shipping american jobs all over the world for cheap labor. THAT cannot come back overnight. ITS STRUCTURAL. It has to be rebuilt. That is going to take policy change and time. So if you think this is fixable with QE and the restoration of CONfidence...which is the game now...sorry. I will not go into the aspects of structural issues such as water, climate, DEMOGRAPHICS, overpopulation, infrastructure. That is all just TOO depressing and we don't need anymore of that.

Buy our aforementioned stocks on pullbacks and enjoy the game.

9 comments:

  1. Not depressing, just the truth and fixable with time. Real question is, do we as a people have the brass to admit it and is there and will there be the leadership to get us there?

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  2. check out todays CR writeup on qe2...and Fed Gov. Sacks recent speech http://www.calculatedriskblog.com/2010/10/feds-sack-managing-federal-reserves.html

    "Nevertheless, balance sheet policy can still lower longer-term borrowing costs for many households and businesses, and it adds to household wealth by keeping asset prices higher than they otherwise would be."

    wealth is for the wealthy is what he's saying...buy now or we will prop assets forever..sheeple, you keep laboring...

    gold looks good huh!

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  3. I like to see ALU taken down to 2.80, kli if this month they take it below $3 accumulate and hold for 5. I also like to see them take DCTH down to 5s. Come on boyz, get on with it.

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  4. I am very patient....and am counting on the pull back........not letting the shorts get in today.......can't blame um...ALU 2.91

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  5. ARNA is squeeze drop wait repeat on a faster higher beta track. DTO is a slower swing which ready for another round after slaughtering those on the short side. General market ready for a few down weeks once the distribution is completed. Wash rinse repeat until something breaks. Only oddity is gold, not much of a pullback.

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  6. So you remember when I said "I ought to add more GORO"?.. Yeah..

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  7. goro.....joe's advice on it was buy and HOLD....hehhehe......oooooboy

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  8. Goro unreal...I made so much, sold quite a bit, duh??? Hope everyone's doing well, been out of town and dog in ICU!

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