Saturday, August 20, 2011
Credit is Available... But Confidence is Not!!!
Doom and gloom has rarely served anyone well. But reality is a tough pill to swallow at times. Revisiting a time when the stock market's "floor" was put in somewhere in 2008, I never really bought it. After all, while the pundits blew the "All clear call" from the beach most of us understood that the waters were still shark infested.
Unlike the Great Depression, credit is readily available in this economy. That is the biggest lesson that was learned from the Great Depression... our economy runs on credit. Unfortunately, this time around we too will realize that our economy runs on employment. And the persistence of long-term unemployment will not only cause a continual ripple effect through the economy, but also destroy one of the things the entire world economic system has taken for granted; the U.S. consumer's disposable income.
Splinter groups like the Tea Party call for less government, less taxes, less regulation, and an end to all entitlements, most agree that the Republican's meant everybody else's pork not their own. But the Tea Party would suggest they meant EVERYBODY's pork. Democrats are slowly realizing that this means structural changes to entitlements that both parties have long favored namely Medicare and Social Security. It is my belief that the Tea Party will eventually become a third party, as neither Democrats or Republicans have the wearwithall to stomach some of the proposed cuts.
D held since 2006
20% Gain (Plus approximately 2.00 per share dividend)
Janzen's Short Play LULU
-20% Loss (From recommended peak)
Purchased July 2007
Posted by at 4:27 PM