Thursday, October 9, 2008

Not Funny - But Laughable

The government keeps trying to stop the bleeding on Wall Street. And it just keeps bleeding. And politicians, typical of their breed, don't have a clue as to "why". They think it is because of the economy. It's not. If it were, all these bailout plans would have had at least some effect.

Isn't it strange that the politicians and Washington elites do not do the first thing that common sense dictates - ASK THE INVESTORS why they keep selling. Perhaps they are afraid of the answer.

But as an investor, I am not afraid to speak up. It's simple, really. Ask yourself, what is an investor? He is someone who puts money on the table in the hope or anticipation that tomorrow it will be worth more. In other words, investors do not gamble on yesterday. They do not gamble on today. They gamble only on tomorrow.

This is mid October. In four short weeks we will elect another president. Normally cause for some concern, since Wall Street knows that a Democrat win always historically harms capitalism, as Democrats tend to be somewhat socialist. Nothing new there. But what is new is Obama. He is not the typical Democrat. He has already proposed huge tax increases on all the people who are responsible for the generation of wealth. He has proposed a hefty tax increase on capital gains. And right now, there is a better than even chance he will win.

And not a single investor that I know - and I know quite a few - want to be heavily vested in the market if that happens. So, they are pulling out, regardless of any petty attempts put forward by ignorant politicians.

And here is something else - if Obama does win, the money will not go back into the markets, and the economy will continue to tank. But if by some chance McCain happens to squeak out a victory, most investors will begin to slowly reinvest, and the economy will slowly regain its footing.

So, all those politicians should simply stop wasting their time and our money trying to stop the bleeding. It will not stop until investors have only the bare amounts in the markets to maintain a position of strength for "if and when" McCain wins. If he does not win, I think you should prepare for a long, deep hurtin' spell. Not because I am against Obama, but because that is simply how investors react.

In short, if you have reason to believe someone is going to take shots at you, get the Hell out of the way. Obama has already said he plans on shooting at investors, so what does anyone expect?

There are those who do not understand that believe investors are at fault here. Some people hate investors because they think we are "predators" of some sort. They are not. The backbone of America is its workers and its investors. The workers create the products and perform the services. The investors provide the money that makes it possible to work. Without investors, companies cannot sell stock to raise money for the business. If they cannot sell stock, they go broke. No business, no jobs, no products or services. It costs money to operate a business. And the money comes from investors. Investors would have no money to invest if not for work. But there would be no work if not for investors. They need each other. When one falters, they both take the hit.

This is why it is important that voters consider the ramifications of their vote. They should understand that their vote will choose either a socialist direction, or a capitalist direction. If capitalism fails, America fails. Not one single nation that ever turned to socialism has ever succeeded nor have any prospered. And the ultimate socialism was reflected in the Union of Soviet Socialist Republics.

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