I meant to share this a few days ago. Take a good look into Mayor Booker's eyes in this video.
Time and money are running out, and the challenges that Mayor Booker faces right now in Newark will be seen all across this country as our deficits continue to spiral out of control.
Expect to see this at a theatre near you folks. There will be less police, less firemen, and fewer social services available as the states struggle to survive as a result of this fiscal crisis.
Taxes will soar and foreclosures will soon follow as fiscal reality slaps us right in the face.
Bubblevision and the puppets in DC will continue to tell you that we are in the middle of an economic recovery.
The facts say otherwise. Just look at the news flow today:
Durable goods were down for the second straight month.
The Fed's Beige Book says that the economic recovery has slowed in some areas.
Gov. Schwarzenegger Declares State of Emergency, Issues
Executive Order to Impose Furloughs Due to Cash Crisis Caused By
Local Governments to fire 500,000 in the coming year.
How do they tell us the economy is recovering with a straight face when the news flow looks like this almost everyday?
Folks, Rome is BURNING. Look at Mayor Booker....He looks like he has seen a ghost.
I can guarantee you that behind closed doors most state governors look just like him.
This disaster is spiralling out of control and yet the money continues to flow to mainly Wall St vs. Main St. You would think that the government would have learned by now that this policy has been a catastrophic failure.
I suggest that all of you read PIMCO's Bill Gross's take on the economy in his August outlook that came out today. He was highly critical of the governments response to the financial crisis.
"PIMCO’s continuing New Normal thesis of deleveraging, reregulation and deglobalization produces structural headwinds that lead to lower economic growth as well as half-sized asset returns when compared to historical averages. The New Normal will not be aided nor abetted by a slower-growing population nor by cyclical policy errors that thrust Keynesian consumption remedies on a declining consumer base. Current deficit spending that seeks to maintain an artificially high percentage of consumer spending can be compared to flushing money down an economic toilet. Far better to create and mimic other government industrial policies aimed at infrastructure, clean energy, more relevant education and less costly healthcare services. Until we do, policymakers will continue to wave their hands in front of the electronic eye – waiting for the flush, waiting for the flush, waiting for the flush, with very little success. Try another way, Washington. El-Erian, Sachs and other 21st century policy thinkers have a better way to push the handle.
William H. Gross
Bill Gross is the smartest guy out there folks IMO. He is also often called upon by our government when they needs help. His August note was astonishing to me because of these close ties. I have NEVER seen him this critical of the policy in this country and it is something to take note of.
It's really amazing to me: Everyone seems to "get it" except the people that matter down in DC.
It's easy to see why they don't:
The idea that they must make unpopular decisions that could impact the elite and other special interest groups in this country is far too much for them to fathom.
Extend and pretend is a far easier game to play because no one gets offendes. This approach is an easy choice because it increases the chances of re-election which is of course is all anyone really cares about when it comes to being a politician.
The problem with this policy is the country is going to go down the drain in the process because it's NOT working!
Let me vent here for the moment with a few questions. :
How bad do things need to get in order for them to get it?
How many more people have to lose their homes?
How many more jobs must be lost?
How deep in debt do we need to go?
How many states must declare bankruptcy?
The Bottom Line
We are doomed unless someone is ready to "man up" in Washington and demand real change.
What angers me here is we are not getting any help from the press. We need their help because America for whatever reason is not willing to stand up and do it themselves.
I turn on the news everyday and I am baffled at how clueless the media is.
I am starting to believe that everyone in this country has been brainwashed by the 25 years of prosperity we have seen since the last real recession in this country.
Day after day we are bombarded with "happy days are here again" sound bites that make me want to just vomit when you see what's really going on out there.
The press has turned into a nothing but a bunch of Pollyanna's.
It's time for this country to get their heads out of the sand and realize that there are a lot of sacrifices that need to be taken over the next 10-20 years before we see anything close to the prosperity we have enjoyed since the early '80's.
People must realize that a new normal has now taken control. The days of 10% annual returns in the stock market are OVER.
Prices on all assets will be dropping for several years as deleveraging takes place throughout the economy.
The days of having 2 SUV's in the driveway, owning a McMansion, and taking two vacations a year are a thing of the past.
Moving forward you will no longer be able to afford to send your kid to a $40,000 a year liberal arts school for an average education.
The faster we all accept these ideals the better off this country will be.
It's time for us to stop living in the PAST and start living in the FUTURE
The Fed and the rest of the puppets in DC should be the first ones in line when it comes to making this change because the country is on the cusp of collapsing as we continue to try and hold on to a standard of living that is fiscally unsustainable.
It's time to put away the wallets Washington before the bond market does it for you.
Disclosure: Sold 50% of my long holdings in Momenta Pharmaceuticals.