Here is the latest conversation I had with money manager Andrew Horowitz…. new insights for anyone who invests in anything. Ever think about short-selling? Horowitz has been uncanny at predicting the recent market movement. What to do? This chat is presented as-is for anyone who wants to listen in. Among other things, this week we talk about the impact of Cap and Trade.
Time bomb: 2 years.
In 2 years, the US government credit rating is going to get slammed because and endless string of $1 trillion and rising deficits.
We now are living in the final “Fantasy Island” days.
California $24 bln IOUs and so forth is the bleak future we are headed to. There is no net cashflow in this country because we don’t export and don’t manufacture. Tax money has to come from somewhere.
Both parties are filled with lazy, smallminded, shortsighted, petty, self-serving people that think government is an unlimited trough of $$$.
It isn’t.
The country will survive, but it will need to adapt.
Apparently, no one in government is serious about adapting, but give it a few years.
Sit back, watch the ride and enjoy the show!
Keep remembering it is a comedy, and an epic but one with a happy ending.
#1 “There is no net cashflow in this country because we don’t export and don’t manufacture. Tax money has to come from somewhere.”
We are running business out of this country. I have a small business (9 employees) and my HR consultant came into the office yesterday bragging about how “Obama was going to make him rich” with all the new anti-business regulations going into effect. The consultants only concern was that he was going to have to make his money fast before his clients went out of business. He is seriously planning on retiring in the next few years.
Without net cashflow, there is no money.
Without credit, there is no buffer.
In 3 years, there will be no money and no credit.
The country WILL survive, but it will have to wake up and start thinking.
This country has been wealthy for 50 years and wealth is a curse that makes you believe you don’t have to work hard for what you have.
I will enjoy the wake up call. Everything will be ok, but it won’t be easy.
When the government credit goes to zero, it will be the financial equivalent of 9/11 where things will never be the same.
I can always choose to move to Canada and watch from there, but I won’t.
It’s not Obama’s fault, nor Bush’s — this country basked in wealth like work-ethic and thinking went out of style and today little girls are raised in a princess culture and young men are trained to think corporate America will take care of them.
Freedom and Independence and financial health are all earned, never given.
Forgetting this means you be forced to learn it again; and learn this country shall.
Tip: Guns and ammo
Laugh now……just wait until you can’t run over to Wally World and buy a loaf of bread.
Dimwits.
Enron had plenty of help in causing California’s Failed Electrical Deregulation Attempt. This plan was doomed from the get go. Many in the electrical distribution industries wanted deregulation to fail. There was a large electrical company in Montana that invested heavily in Fiber. I think it was called reach out and touch America. They laid a fiber trunk line across America and it’s still lying there doing nothing. This company as well as CA. Electric Providers played a part in the rolling blackouts John is referring to in his broadcast. Bottlenecks purposely created by many caused California’s Electrical Restructuring failure. That fail attempt has a slogan (Remember what happen in CA.). It’s popular with TVA. And other monopolies that are against competition in the electrical market.
I will take my TVA electric bills over what the people in Crapafornai are paying. Of course that wound is mostly self inflected just as their current economic mess was self inflicted. Being a good place to do business and keeping the books balanced have not been considered priorities. They still aren’t so far as I can tell. It’s going to take a lot of pain to change that mind set.
I basically agreed with the podcast. Very well done. Good job and all that.
I can see the bottom coming. I don’t see a hint that any of the government types have a clue and with them ruining everything there is no hope. In other words I expect us to hit rock bottom and stay there.
My family on both sides made it through the great depression because they could grow their own food and fuel for heating grew on the farms they lived on. What is going to happen to the urban population is harder fathom.
A lot of people have tried to grow gardens this year and I’m eating at least some food from mine.
i have nothing left
those with the power no longer eat the poor
they eat the middle class
soon only cannibalism
One thing I thought of while listening to the whole cap-n-trade discussion: John mentioned that people who own forest land will be able to sell their negative carbon footprint. Guess who mismanages more forest land in the US than anyone else? That’s right, the US Forest Service and Bureau of Land Management. So now the government can set the total amount of carbon credits, establishing a baseline. Then, since they have a lot of credits to sell, they can then make money on the deal. If they don’t have enough money, just lower the total amount of credits available.
Sounds just like what the FED attempts to do with the dollar.
John, I have read, watched, and listen with interest and some affection over the years, and I realize you carefully nourish and adhere to your gruff cynical persona. But your stated “suspicion” in this broadcast that Obama’s haste to enact so much legistaion in his first year is similar to Hitler (!), because Hitler may have had a progressive disease, is beyond the pale even for a patented curmudgeon like yourself.
Here’s another line of similar reasoning: 1) Hitler was a non-smoker 2) Obama is trying to quit smoking. 3) Is he trying to emulate, oh, I don’t know,….HITLER!!?? -OR- 1)Hitler liked dogs. 2)Obama likes dogs. 3) Is Obama trying to be like, oh, I don’t know, ….HITLER!!??
John, please try to wean yourself off Glenn Beck. Hitler is a personification of modern evil, and comparing anybody in American politics with him (Republican or Democrat) for any reason, is low-ball.
#10 Hitler was a vegetarian too! :O
And an addict of amphetamines (which, with long term use, causes parkinsonism). It’s not an “interesting” supposition that he pushed through his horrific ideas because of Parkinson’s disease. That seems far-fetched and dubious.
Perhaps being bat-shit crazy isn’t enough an explanation?
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