That was just pathetic!
Now they’re blaming IBD’s article that predicts that Bush intends to reduce the deficit (gasp), possibly by raising taxes (!!!) while conceding that global warming (but not evolution) might be real which "will cost the U.S. about $212 billion to $390 billion in lost GDP each year, according to a wide range of estimates. Total cost (of saving the planet) by 2020: as much as $5.5 trillion!"
I was just watching Kudlow and Company and Larry is actually making the statement "it’s just not worth it!" Well, Larry is about 60, so maybe not for him but some of us have a slightly longer-term perspective. Meanwhile, we already have a single budget item that dwarfs that very bloated estimate of $390Bn a year – Iraq! We spend $300Bn in hard dollars to fight that war every year, and that’s prior to sending 15% more troops. No one has even calculated the total burdened cost to the GDP of that mess because all the people who play those sorts of numbers games are employed by Republican think tanks in order to explain to you how taxing oil companies and saving caribou hurts the economy.
As I said this morning, if we don’t go up we should just get out. Are you out? Yeah, well, me neither…
Face it, we’re not that smart. Do the markets have to send us an engraved invitation that says "Welcome To Hell" before we know we’re there? I’m willing to bet that even if we got the invitation, even if it were literally on fire with burning letters the said "You are entering stock market Hell!", even if we could smell the sulfur, even if the card were hand delivered by vile demons - we would still turn to each other and say "Oh, they can’t mean THAT Hell – can they?"
Are we investors or gamblers? The difference between an investor and a gambler is that an investor knows when to walk away! We are just 125 points into my 295 point correction (and that’s optimistically assuming we hold 12,300) ahead of my pullback prediction that could take us down to 11,500. Our launch mission was scrubbed today and we may not get the go-ahead for a second attempt at this point so get used to the gravity – it’s not going to go away!