Do you feel it at work? Walking around in the department stores, buying your groceries, still have a job?
That slight feeling I’ve noticed as well; that peaking under the covers at the light, glimmering at the end of the tunnel. The president is talking about how the stimulus is working, global markets are up, home sales seem to be leveling off, shucks we’ll even give you money to exchange your old car!
I’ve always noticed in my life, that as long as i’m working, and working a good deal I will be fine. A lot of people still are not working, and that number is increasing. You have the people in my generation that are content to collect unemployment and leisurely look for “entitlement”. “We’ve enjoyed the 90s and 2000s, why should we struggle and get a job at McDonalds? We have degrees dammit!” A Slovak saying passed down to me from my father goes something like “you have the right to work, and you have the right to die.” What has happened this year to create more jobs for the millions that have lost them? Nothing, just a bunch of borrowed money has been spent.
Deficit spending decreases the value of the dollar which angers China, because they own by far the most of such a great deal of U.S Debt. So they have to continue to buy it, even though they have expressed interest in other countries. We’ve issued $300 billion in Treasures since July.
Nothing is as it seems this year, how can a company have the best quarterly profits in it’s 140 year history (Goldman Sachs) after the meltdown we witnessed last year, when it was bailed out with billions? There will be consequences.
I loved the rally in the market, it was bound to happen if you look at the history of boom and bust we’ve endured post WWII. I’m not against the Federal Reserve however, I think it was great that they invested in the companies in financial “trouble.” The amount of money the government made in interest was I’m sure a large part of the reason why they weren’t so eager to take back TARP money. I purchased a considerable amount of preferred stock, the same class the government owned last year. Call it socialism, call it anti-capitalist, but I will call it profitable. If our government needs money to fix this country, let them invest and make it rather than take it from us in taxes.
Now I feel the party might turn bittersweet, another meltdown might be on the horizon. Proctor and Gamble just lost a lot of money this quarter. Not a good sign if the people that make razors, pringles, tide, and crest are hurting. Our country is still contracting. Interest rates have been low a long time, this I feel is the next thing to reverse. Once this happens, debt prices will be crushed. If you’ve ridden the rally up some 40% this year, that itself is an amazing feat. I always hate the feeling of knowing I could have quit while I was ahead.