We are a commune of inquiring, skeptical, politically centrist, capitalist, anglophile, traditionalist New England Yankee humans, humanoids, and animals with many interests beyond and above politics. Each of us has had a high-school education (or GED), but all had ADD so didn't pay attention very well, especially the dogs. Each one of us does "try my best to be just like I am," and none of us enjoys working for others, including for Maggie, from whom we receive neither a nickel nor a dime. Freedom from nags, cranks, government, do-gooders, control-freaks and idiots is all that we ask for.
The communists were put to rout in the Indian elections. This suggests that India will take new steps to liberalize its economy, including foreign investment, free trade, privatization, and tax cuts. This is a big plus for global economic recovery. And the Indian elections may well have triggered the stock rally right from the opening bell this morning.
Plus: Morgan Stanley will probably de-TARP, along with Goldman Sachs, JPMorgan, and perhaps others. No one knows for sure, but I think of de-TARPing as a kind of falling of the Berlin Wall. Let economic freedom ring. Let banks get out from under the yoke of government controls.
Yes, there will be shareholder dilution as the banks raise new equity capital. But the thought of banks freeing themselves from Team Obama way offsets any near-term dilution issues.
And out on the Left Coast, California voters look set to deny big state-government taxing-and-spending initiatives in tomorrow’s election. It’s a Prop 13-like vote. And it suggests that the Tea Party movement is in fact indicative of a tax-and-spend revolt going on around the country.
And the Congress voted pro-gun this week! And the Congress voted to keep Gitmo this week! And Cheney and Bush's numbers are on the rise. Could America be getting over its mass hypnosis? I felt it would never happen. I would love to be wrong.
Barrister ... I think Larrey is naive to think that the big banks will be allowed to de-TARP. The Administration has already demonstrated a reluctance to let that happen. It'll take more than 'wishing' to make it so.
Kudlow has never been anything but bullish in his life. While I enjoy his optimism, I'm sure a lot of people were buying equities from 2006-2008 due to his ultra-bullishness every day on CNBC.
The worst is yet to come. The second wave of residential real estate foreclosures and the first wave of commercial real estate foreclosures starts late 2009/early 2010. The fraud of mark-to-model accounting will become apparent along with the insolvency of the banks, and there will be another panic like september-november 2008 and february 2009.
This is just based on what's already been set in motion by what's already occurred in the last decade, these are just inevitable consequences. On top of that, look what Obama is doing going forward. Massive deficits will only make things worse. Bailing out CA and other states, if it happens, will be the last nail in the coffin - giving a dollar printing press to states and municipalities will doom America.
Just call me Mr. Sunshine.
My eyes, my head, my gut, and my crystal ball all agree with you, Mr Sunshine. I hope you've been sleeping well, cause I haven't.