The economic consequences of intellectual poverty

This morning three hours before the markets open the Asian markets closed down just under 1% and the European markets are currently up just over 1%. The futures for American markets are presently up fractionally.

The economic political strategy of the Obama administration continues to be negative as long as they think they can convince Americans that nothing is their fault, and they are just a victim like everyone else. Of course that is the attitude of poor people around the world. It is the culture of poverty and it is a self fulfilling culture that ensures the continuation of poverty.

Prosperity requires that people expect nothing for free and take responsibility for their lives and conditions. Poverty comes as the result of blaming others for our condition and claiming one has been overwhelmed due to the illegal or repressive actions of others such as the rich, Wall Street, and the Bush gang. The culture of poverty doesn’t want to take responsibility for fixing things they want to revel in their misery and punish those they blame for the futility of trying to fix things and the futility of trying to succeed. They want to revel in the delusions that their minds are being wasted and it is not what you know or do that counts but who you know and what they can do for you that count. Poverty is the culture that breeds corruption not of the white collar intellectual type but of the heavy handed type like in the book, “Ironweed” where it is your duty to vote at least six times in different Albany precincts and register Democrat if you want your garbage picked up. Depression is a state of mind, a state of an impoverished mind.

And Americans have had such hope for this new president and thought he would bring us hope as FDR did in hard times. But perhaps it was because FDR was filthy rich and filthy poor just doesn’t bring the same hope, ambition, respect and love for all people, and a sense of duty and pride. Instead it appoints a $16,000 federal tax cheat, an employer of an illegal foreign worker, and an architect of the collapse of our financial system to become the American Secretary of the Treasury. Yes, the panic that forced the government to insure our money market investments was the result of letting one financial institution fail completely and investors lose everything they had. Investors who already had been raped by corporate greed were then wiped out by government. Doesn’t that make you feel confident the new Treasury Secretary will do what is best for you? No?

President Obama has set the stage this first month for the economy and Wall Street. The first week of January was down, and so far we are down about 7% for the month. Where was the Obama rally? Unless the rally comes this week statistics say the stage will be set for a bad year.

Well it is obvious that this new administration will do what it can to spread their victim culture of irresponsibility and self loathing.

How far will they take us in self loathing? Perhaps they will threaten to turn President Bush over to the European court at Hague for a trial as a war criminal? You think that is not possible?

You may think that our position is less than bullish. But you see the market began to collapse last year the moment the Obama campaign and their fawning media boosters began saying we were in a great depression. And then when he was elected it plummeted on Election Day ad hit its low. So far the Obama election low point has held with some margin and we called it the market bottom. It was a capitulation point.

But we are not in a depression... this is a recession. The banks and real estate markets failed in the 1990’s during that recession too. Unless the Obama administration actually succeeds and gives us a great depression, the economy and the markets have discounted the very worst already. We think the poverty culture that is in power has already been discounted and everyone is so negative now that it has created an investment opportunity of a lifetime. Real estate should also be an investment opportunity by mid year and unless this administration does something radically bad, this recession should be declared over before the end of the year.

Good luck on your investment journey.