Saturday, November 28, 2009

While You Were Eating Turkey...

The Federal Reserve's balance sheet hit a new all time record of $2.2 Trillion in assets

Add to this the "all time record" of our deficits, and you have to wonder why the bozos in Washington are furiously looking to add another trillion dollar entitlement.

One thought is that as long as the country is going to go bankrupt you might as well run up all the credit cards as high as you can. There is no conceivable way we can climb out of this mess other than massive inflation or default.

Tuesday, November 24, 2009

Hello? McFlyyyyy?

Does this surprise anyone? Economy's rebound not as strong as first thought.

In the mean time the little emperors in Washington fiddle while the country burns. Job killing health care plans, job killing tax increases, job killing cap and spend proposals. Any rebound in the economy will be despite what they do in Washington, not because of it.

My own take is that we will have little to no growth for the next several years while more strangleholds are put on businesses, discouraging employment. If the health care plan passes I expect small businesses - the engine of employment growth - to basically go into cardiac arrest, pushing out any real growth out for years.

In the mean time government spending at all levels will continue unabated. To fill the shortfalls the federal government will borrow more and local governments will tax more, putting even more downward pressure on the economy at all levels.

We have basically entered a death spiral which the democrats can't get out of. The solution - sharp cuts in spending and taxes - is not something they can bring themselves to do. They rather destroy the economy in the name of their convictions than admit they're wrong.

Monday, November 23, 2009

Why Many Businesses Will Contribute Little to GDP Growth Nov 23 - Jan 4

"Okay, let's meet next week and close up this contract after Thanksgiving."

"No that doesn't work, I am on a ski trip. How about the week after that?"

"No I have to attend my daughter's Christmas play and can't travel that week. How about the following week."

"No, Fran's parents are coming in early for the holidays and I am grounded."

"Well, we both know we can't do it Christmas to New Years. So how about we chat in January?"

"Great, but not until the first full week since the kid's aren't back in school yet."

"Perfect, we'll have this all wrapped up in seven weeks!"