|We are beyond the financial crisis. We have entered the FOOb crisis. FOOb = Fear Of Obama. I expect at least one more big avalanche downfall. Will it be the last? I don't know. |
I heard Barney Frank wants to cut Defense by 25%, and a fair assessment of Obama's spending is around $4.3 trillion. No way to recoup that by checking the air in your tires, closing loopholes, cutting defense spending, windfall profits tax, increase in capital gains, and taxing the top 3% who already pay 30% of the income tax. I doubt if importing aspirin from Mexico will help much either.
On top of that, no offshore drilling, so that oil prices will rise and choke off any economic rally.
I hear that there is a bill being considered in Congress to nationalize our 401(k)s. The government takes our money, spends it the way they want to, and gives us a guaranteed interest payment, like an annuity. Same guarantee they give Social Security.
Best investments = canned goods, guns, and aluminum foil. Not stocks. At least not yet, unless they start printing stock certificates on toilet paper.
Aluminum foil because Obama's carbon tax will add $100 billion in costs to energy usage, and aluminum is energy intensive.
The charts aren't showing any attempt at a bottom by TXN. In fact after looking at quite a few charts I am saying that the chance of another waterfall decline next week is high. Watch the futures early Monday. Could be a really black Monday, but I hope not. If TXN goes below the 2003 low, there is NO support.