Tuesday, October 7, 2008

McCain is done and the economy explained

The big news this week is the failing economy. I for one made money with puts on DIA. Here's a tip #1, we aren't at the bottom.

15 years ago this economic crisis was predict rather accurately. The person wrote a good book - The great boom ahead. He didn't know we would get Bush wacked or that the feds would keep rates too low to long and a hundred other excuses that people are using to blame the Republicans and ask government to solve the problem.

Tip #2 - The government can't solve this problem. They are only going to make it worse. Evidence is George Bush and Dems adding another trillion to our national debt which will end up in rich people's pockets. Thanks Pelosi. Later she said this was just the beginning, since the market tanked on her last plan I won't hold my breath.

Tip #3 - Housing isn't coming back any time soon. If normal housing 'trades' at 9 times annual rents and its now 20x annual rents, its going to be a while. And what do we need for it to go up? A change in supply and demand. Oh yeah the largest group of people in America aren't buying new houses, they will selling them and dying in them over the next 10 years. Not a nice thought, but true. The demand is only going lower. So the new socialist government we just put in place will be holding that paper for a while.

Tip #4 - For McCain, start running on an Energy independence policy that will lead to economic recovery. Its your strongest point and more people agree with you then Barack. Stop wasting air on Aires and Barack associations. Independents don't really care. It sounds like you are trying to scare people into making the wrong choice. But the answer is to run to Republican leadership, which no one believes exists because Bush put a stack through the heart of the Republican party. Instead McCain is blowing it.
No party has won re-election in a year where the stock market was down going into the November election in the last 30 years. (I only went back that far)

Tip #5 - For McCain is to attack Barack for his ties to Freddie/Fannie. That one could have some attention. Tie it to McCain trying to pass more legislation, but it was blocked by Dodd and co. That's important -> blame the Dems for the failure in the economy, there's an idea, since they are responsible. This town hall might be the only chance to get that discussion in the open because MSMBC isn't going to be playing and Hannity only knows how to say 'bill aires, raaght, bill aires' Insert parrot noise.

Tip #6 and my last point for Americans is that you should be preparing for an economic depression. The economy for the next president will be bad regardless of who wins the Whitehouse. That is not a question, its a fact. So you need to vote for the person who you think will do their best to help soften the blow. For me, I'm not hoping Barack wins. After that unemployment will move to 10-12% and the Republican party will take back the majority in the house and senate. This typically leads to best economic prosperity for America as well as weakness militarily which further leads to future military action/conflict in the world. So its not all good but not all bad, but a 'cycle' we need to prepare for.

That's all I wanted to say for this post. If you aren't sure about #6, read the Great Boom Ahead, you can probably get it at Amazon. Get the update which predicts the current 2008 issues and the future struggles.
If you don't want to buy the book, I'll give you my 2 cents here:
Real bail out ahead

Extra credit: Ayers is spelled with a y no an i.. but does anyone really care?

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