Stocks And Bonds | COMMON SENSE

Wall Street Greed :: Politicians Fear

October 30, 2009 By: Doctrader Category: Financial Info

If Wall Street’s Greed and Politician’s Fear could have solved the financial crisis, then why did we have to go through the pain of last year?

: Image by doctrader via Flickr

For free market capitalism to work, both Main Street and Wall Street have to have greed and fear. Even today, they average long term investor is only “Fearful” of missing the bull next rally. They do not have any “fear of losing everything”. The “baby boomers” have taken the “buy, hold, and hope theory” to the maximum level, being eternally over optimistic with regards to the economy. After all, they learned investing during the 80’s and 90’s when the market had spectacular gains. Now the baby boomers find themselves in a difficult position, believing the market will go up and the value of their homes will go up at the same time! Currently, many baby boomers are putting off their retirement, once again, hoping the markets will reward them for the failed theory of “buy, hold, and hope investing strategy“.

Fear and Greed are supposed to rule the markets, yet Wall Street has conditioned you to only have “fear” of missing the next bull rally. So you buy, hold, and hope for the next bull market rally! You wanted cheap goods, cheap oil, while continuously buying more and consuming more! I remember in 2008, when people were complaining about gasoline being at $5 a gallon. I asked them, which is more valuable, a gallon of gas or your 401k plan? The value of you portfolio in you 401k plan is directly linked to economy of oil, and oil to your stock market gains!

Meanwhile, the market media matrix was touting Goldie locks economy, green shoots, what is their next slogan to get you to spend every dime of your paycheck?

Wall Street has “Greed”, and no fear. Wall Street tells the politicians as the markets were falling, ” we are all in this together”! Last year, there were secret cigar smoking strategy rooms, weekend mergers, hostile takeovers, and plenty of back alley back stabbings stealing assets from weaker competitors. The dog eat dog world of Wall Street, everyone was fighting to stay alive.

Now, just a year later, no one is talking about the “toxic assets” that are still held by those bailout cry babies. Meanwhile Bernake, Geitner, and Kardashin, are bringing in tons of cash to shore up the financial services industry with the indentured taxpayer! The next market crash, will ensure the debts to your children and grandchildren.

OUR country’s future is foretold in the headlines of history, “The 100 Trillion Dollar Note” as Zimbabwe tries to stifle the fires of hyper inflation. Politician’s Fear taking preventive actions, only to act decisively during a crisis, always choosing the politically expedient incompetent answer. A Trillion here, a trillion there, pretty soon we are talking about “real money”! Spending 25% of the nation’s GNP has never solved any nation’s debt problem in the history! The idiots in congress have never managed a busines, let alone a simple a “hot dog stand”, yet they want to master mind economic recovery with an estimated100 Trillion in unfunded liabilities.

The Politician’s Greed, for incumbency forces him to take action during a crisis. He rejects free market capitalism correcting mechanism, forgoing the short term temporary pain of a Depression. He purposes silly fixes and proudly announces that he has solve the problem.

Engineering our way to a Weimar Republic, which could be worse than a “Great Depression“. In either case, hyper inflation or depression, you will still have to have food! If you don’t have 6 month to a years supply of food, that may be your best investment choice over the next 6 months. Time is running out, you cannot simply trust in the “buy, hold, and hope” theory any more!

Doc

History Repeats!