Enjoy The Bubble

On February 17th, 2009, the American Recovery and Reinvestment Act was signed into law. In a nutshell, this made it possible for our elected representatives in DC to earmark nearly a trillion dollars (mark my words it will be a trillion dollars by the time this is over) to “stimulate” the American economy. Hold on though. That’s just the portion from that particular act. All in all, you and I have pumped in about $19 Trillion to bail ourselves out of the mess we got ourselves into. Go HERE to find out who got it all. 

In no uncertain terms, I have always believed this isn’t about stimulating the economy as much as it’s about lining “those who have plenty” $1000 suit pockets with more money. Not gonna get your $20 million bonus? We can’t have that.

Don’t get me wrong. I could really care less if someone gets a $20m bonus. I’m not a jealous person and other than making some stupid financial mistakes in my recent past, am content with my job and the money I make doing it.

The point I’m making is we need to be honest about what is really happening here, and more importantly, what the repercussions are going to be when this is over.

I’m reminded every Thursday when the Portland Daily Journal of Commerce prints the “trustees notice of sales”. Oddly enough, this has been my barometer for the economy. Yesterday’s paper was nearly 1/4 thicker than last weeks paper. Which has been getting thicker for the past year. Yeah folks, more and more people are losing their homes. It isn’t getting better. It’s getting worse.

So is the stimulus working? Not for the people that need it. I see it in real time. The media has sugar coated this issue.

I used to trade stocks and one thing I learned – All markets will correct themselves and are indifferent to influence in the long term. So I ask myself, what is the catalyst for the current “bull run” and is it sustainable? I say no on so many different levels. The government money printing association is not a catalyst for future growth.

As I type this article, the FDIC (the good folks who guarantee your bank reserves) is below it’s legal reserves. The FHA (the good folks who insure the lenders) is below it’s legal reserves.

In another year (or two), the hurricane is going to hit. People don’t even realize it yet. We can thank our own government for delaying the inevitable.

What’s next? More money printing. There is no question in my mind the next move (to delay the inevitable) will be our esteemed treasury secretary (aka the Obama Administration) asking for a taller debt ceiling. Why? Because you and I really don’t hold the reigns.

Sometimes I think we live in The Matrix.


9 thoughts on “Enjoy The Bubble

  1. Why is it that not too long ago we went for a staggering national debt to nothing and then back up again? Was it a lie that the debt disappeared? Just smoke and mirrors? Getting us out of these two useless wars (read “military actions”) we are in now will help. Spend those billions at home rather than give it away to afghanistan or whoever wants it. Let’s stay home for the next decade and take care of America for a change!

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  3. where the HELL is g?

    anyone seen him?

    Lost in the wild scapoosy hills maybe?

  4. g sorry to say thats not acceptable. Sure the floyd oracle predicted this back in 83 via tape cassette but if you spend all your time not posting new topics… ahh i was going to quote a random lyric from Animals but I got nothing

    Careful with that axe EUGENE?

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