Sell On This Bounce….. and Socialism Is Here….
If you have not gotten out of the markets yet, sell now! Either Dumb or Dumber is coming to screw up your investments (McCain or Obama). And to those of you that listened to me in May and went to all cash, nope it is not time to play this puppy. Are there going to be some opportunities here to get in an out? Sure but it is truly gambling right now.
Lets see how my crystal ball is looking to date. Went below 8,000 on the Dow = Check, Oil prices dropped into the 80’s = Check, Silver and Gold shot up= Check. Oil is edging back up = Check. Making a Crap Load of Money buying SPDR’s = Double Check!
So now what? As much as I loathe talking about Dumb and Dumber (McCain and Obama). Honestly, this is the best our country has to offer? From a Capitalist’s standpoint, we have one candidate that just sucks, and one that sucks really, really bad. Yippee ….great choices… I would be doing you a disservice if I did not give you a game plan to deal with what is coming up with your investments depending on which one gets in office….
And here is a birds eye view of what you need to do with your money and there are two different scenarios going on here but both are following an ominous theme none the less.
With the Government Purchase of Bank Stocks, it was a shocking wake up call of things to come from Dumb and Dumber, whichever one gets into office. Socialism has arrived. While it simply has been proven to not work… they did it anyway.
On one hand we have a watered down Liberal McCain who is only a little Socialist (kind of like being a little pregnant) ( Dumb) , who’s policies would not be recognizable as a Republican by Reagan if he was alive, and we have a far, far Left Wing Liberal Anti-Capitalist Socialist in Obama (Dumber) who’s Economics policies are going to make Jimmy Carter look like a freekin genius. (Carter’s tax rates were up to 70% and inflation at about 15%, and unemployment in double digits).
While you have to dig really deep to find any substance in anything Obama has said about the Economy there are enough things said that as investor, you had better heed or you are going to get your clocks cleaned regardless of who you are voting for in a few weeks.
I am going to go over Dumber’s policies first and then I will get to Dumb later on in the week.
Here is what Dumber has said he is going to do in a nut shell and this is directly from him and his campaign.
- Higher Taxes Across The Board Number 1.
- A 30% increase in the size of the Federal Government
- Increase the tax that stock holders pay on dividends from 15% to nearly 40%
- Raise the highest individual tax rate to 55%
- Raise the taxes on Guns and Ammo by 500%
- Ban all new offshore Oil Drilling
- Raise Capital Gains taxes by over 20%
- Stop all new Coal Gasification Refineries (we have enough coal in the US to supply all of our gasoline needs for the next 200 years and we could do this within 5 years)
- Raise Taxes on all small Sub-chapter S businesses by 15.3% (they employ over 70% of the workforce in the US)
- Raise Corporate Taxes by 10% which will make the US the highest taxed country in the world for business
- Re- institute the the Federal Death tax to 55% even though all of the assets and money in an Estate have already been taxed
- Socialize all Medicine
- Government takeover of most Banking
If you are or are not a Dumber supporter, go here to take the test and see where he stands on most issues. You will not see this in the Mainstream press.
http://www.barackobamatest.com/
OK, bottom line here. If Dumber gets in, I see the Dow going down 2,000 plus points and staying there. I see a recession that could last at least 4 years and perhaps longer with inflation going above 8% every year and a mass exodus of companies to other countries where they are welcome, and unemployment pushing up over 10%, on top of a dollar that will fall by another 20%. Laugh Kookabura but, see how many times I have been right here……
There might be a rally after he gets in, but the smart big money will use it to sell off assets and invest in other countries. This will happen in the Trillions of dollars.
Now that is done, my take on Dumb will be coming up. While it is not nearly as bleak as Dumber, it is going to be Hairy none the less.
What scarred the crap out of me was when Dumber said we should all be prepared to sacrifice and the government will be laying out plans to fix everything by cracking down and putting in heavy regulations on the Banks, Companies, and the Stock Markets…. Holy crap Batman. I was immediately reminded of two quotes by a very, very smart woman.
It only stands to reason that where there’s sacrifice, there’s someone collecting the sacrificial offerings. Where there’s service, there is someone being served. The man who speaks to you of sacrifice is speaking of slaves and masters, and intends to be the master.
- Ayn Rand
We are fast approaching the stage of the ultimate inversion: the stage where the government is free to do anything it pleases, while the citizens may act only by permission; which is the stage of the darkest periods of human history, the stage of rule by brute force.
-Ayn Rand
After I do my take on Dumb, I will give you some investment prescriptions but the only thing that I would consider putting money into right now is silver or cash short-term……
Oh and if you have a Sub-chapter S corp, you might want to change it to a C so you do not get reamed if Dumber gets elected. Go speak with your accountant of course, but ask her what is going to happen if you have to pay 15% more tax next year. How many people are you going to lay off? Can you raise prices by 15%…LOL that was funny, OK not so much…. Anyway, get on it.
I will be so glad when the election is over… At least then we can deal with whatever idiot is in office and implement some strategies to actually make money and keep it…
And one more quote for the road…
Government “help” to business is just as disastrous as government persecution… the only way a government can be of service to national prosperity is by keeping its hands off.
- Ayn Rand .
