From the desk of the Rigorist:
Despite my embarrassment at posting so light a note, events are moving too fast to be shy.
Some months ago, amongst friends, I estimated the DJIA bottom at 5,000.
Greed and fear are the two economic emotions, and with the S&P 500 P/E near 20, the market had become … overoptimistic, to be kind, especially considering the difficulty of discerning any real difference between McCain and Obama fiscally.
Obama was/is a Socialist. McCain would always go where the favorable press was, as he scrambled for votes. Any Republican who claims it would have been different if McCain had won needs to be laughed at.
Monday, as the DJIA dropped past the previously knee-high 7,000 like a dead canary from a wire, I must hurry to be prophetic. I’m thinking 4,000 now. 3,500 is plausible.
It’s only Theoretical Money ( the long promised, long post’s topic ) but the unfortunate bird is the telltale of what is in the air – fear, and not just fear but terror and despair.
Right on cue, the President announces that to address the problem he’s going to work on … health care.
Can I call’em or what?
In a comment, I suggested that low quality nursing homes might be a good place to invest, which some took to be dark, dark humor. I’m sorry to say that the joke is that I was being deadly serious.
While Recessions are best handled like Racism, IMHO ( focus on the bottom line and it will go away ), I have been hearing the stirrings of Atlas.
Last Autumn I listened to a restaurant owner saying that in 2009, instead of selling the business to retire – trying to preserve the jobs of 50 or so people that he felt some responsibility for – he intended to close and liquidate. He knew who they had voted for. They had said it loud enough. Screw them. His was the most memorable, but not the only such voice.
As a Capitalist, you see, I take the crashing market as justice and I’m energized by it. I’m enthusiastic about the economy collapsing as Socialism is enacted. Rush Limbaugh is a milquetoast poseur who “hopes that Obama will fail.” I am John Galt, and will co-operate with our government’s plans with a smile because I know for a fact what results Obama’s success will bring.
The worry for Liberals is while I am extreme, I am not special.
I haven’t seen solid evidence that Atlas has become sufficiently discomforted to shift the world, but I think the Liberals that read this blog should know that I’m smiling and why.