Ooops, Ben did it again…
… He played with the economy, got lost in the game. Ooops, he thinks he is in charge; he is just not that…SMART!
We could have had a decent drop today, get a huge part of the selling pressure out of the way and go from there. The markets really want a correction and the more Ben & Company tries to mess with the markets the longer this will take.
A recession is what is needed, wanted, just listen to the economy and it depends on by what indicators you would like to judge if there has been a recession or if we are in one then you will easily see that the U.S. economy has been in a recession for several years.
So, Ben has slashed the Federal Funds Rate, in a desperate attempt to avoid a recession but a successful attempt to show his incompetence, by 75 basis points to 3.50% and what will be his next move?
Hopefully he will step down as he should realize that there is not much more that he can do to make sure the U.S. economy will not recover any time soon. For some reason, maybe his cat died yesterday, Bernanke made his mission to make sure he will be the worst Fed Chairman in history.
He brings a great amount of qualifications for that purpose, one fact that was indirectly pointed out by a reporter at a news conference when Ben was asked which company he used to head as a CEO prior to his current job (His facial expression after he heard the question was priceless). In other words, step down Ben because you do not know what you are doing.
He knows what will work in today’s markets in theory but a chimpanzee with a sub-average IQ knows that the theoretical economic models taught in the classroom do not work in reality. Alan Greenspan knew it (yes, he made mistakes but not the once that assured that the U.S. economy can be comparable to the worst among industrialized countries).
Since it seems like Happy Hour in Washington (Let’s gather the dumbest ideas and execute them), the Government throws in an economic stimulus plan which will do…exactly nothing but waste another $150 Billion in tax money (Hey, maybe we will built a bridge from New York to Los Angeles next. Why? Just for the heck of it…Happy Hour, remember?).
What makes the Government think that if you give consumers any amount of cash because it will get really ugly in the future that they will actually spend it?
Yes, consumers have acted like they were on steroids for years and their Financial IQ was either drastically lowered or non-existent at all (This may sound mean but there is a reason why the only thing this economy has plenty of is…consumer and government debt) but there is no reason to call those individuals who are the back-bone of the economy a bunch of retards and idiots which is what the idea behind the stimulus package does.
In case the Government wants to really help the consumers and this economy how about another round of tax cuts across the boards. How about a flat tax, 10% capital gains tax and 20% income tax? How about we get rid of the AMT and cut taxes on other items? How about financial education for the consumer so that the mistakes which lead to poor financial decision and result in high debt will be eliminated and a strong financial foundation on which the consumer can built on will be present?
Ben and his friends showed that their time horizon is shorter than the one of a day-trader and it seems that the longer term impacts of their short-term decision making is totally ignored. Yes, the problems could have been short-term but the continued interference by the Fed and the Government made all but sure that the problems will be here for a longer period than necessary.
Markets work best if they are left alone and for the sake of capitalism…leave them alone.
The Government and the Fed combined seem to have a new agenda, the total destruction of the U.S. economy and the U.S. Dollar and I think they do a pretty good job at that.
Who said that the Government cannot accomplish anything?
Do you want to make things even worse?
All you have to do is…ok, let’s not get political on this…
Last edited by Triton : 01-23-2008 at 03:04 PM.
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