Wednesday, November 3, 2010

Steve's barking at short selling America

On November 2 the United States voted for the social experiment of the government that governs less governs best.
For this reason I'm short selling the United States. Is the United States economy going  to go down the tubes? You betcha !
Can the federal reserve save the economy? Not on its best day.
Unemployment insurance extensions going, going, gone. Are these unemployed going to find jobs? I think not. Are they going to buy new clothes or a new car? Are you kidding?
Is the budget going to be past on time? We'll be lucky to have a budget at all. How do I know this? I'm positive that the new representatives are people of their word and they want to reduce spending, the professional politicians will fight them tooth and nail.
We'll no longer have subsidy's for farmers, making many of our farms unprofitable. Less farms, higher prices, higher prices for food, less discretionary income.
The big question is will the US become the new Italy were government was disfuncional? Yes but unlike parliament  governments we can't get rid of the bums until two years.
Will the deficit go down? Are you kidding, it's going to get worse even though we be borrowing less.
Why do I think this foolishness. I can't see why China and or any other countries would want to have our bonds when we can't buy their goods and services.
What about our stock market? Surly the stock market will go up. No way! The big buyers of  stocks are pensions and 401ks. Guess what they will have less money to buy stock, and because less people will  be working they will have to pull money out of the market. Dow Jones less then 8000 in two years anybody.
Unemployment over 20% anybody?
New hiring for the private sector, there's no reason to hire. More business going out of business? Yes because they are trying to get blood out of a stone.
Pray that inflation isn't double digit in two years. Better yet pray that I don't know Jack what I'm writing about. I am.

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