Making Money

  Man, I’ve made money since Obama got elected!  Hope you Dems have too. A lot of investors think the bottom is dropping out when a Democrat gets elected Prez, so they ease out of the markets.  Then they plunge in when a Republican wins.  They should do the opposite.  It’s never as bad as they think after a Democrat wins or as good as when an R does. Normally markets are independent of politics unless politics specifically target them.

37 recessions in US history and then always comes a recovery.  Recessions always last less than two years, so when Obama took office we were very due for recovery.  Sure enough, in July 2009 it began.  I was worried about inflation under Obama—due to the spending increases and debt-- and my son and I had a lot of discussion.  He said, No, Obamacare is putting a mandate on employers to buy healthcare for employees or pay a $2000 fine. Costs will increase. That will make them think twice about hiring more.  This may be a rare jobless recovery. Sure enough, I invested heavily in stocks and they recovered smartly but not jobs and ordinary folks suffered. 

It was like the government and Fed went crazy trying to stimulate.  When the Fed lowered rates to zero, they couldn’t go lower.  So they started buying bonds with the QE programs.  The money put into big banks hands went into stocks and Wall Street skyrocketed.  I just rode and rode and rode. What a hoot!  A Dem who hands gifts to Wall Street and Mega Bankers, then screws the little guys.

After a recession, the bubble corrects—housing this time.  But Obama started threatening the small town lenders that he would shut them down if their books showed any bad loans.  Result was that banks didn’t foreclose and instead of housing doing a correction in a year or two, it went on 6 years and nobody could get a loan, so if you had cash, you could buy houses on the cheap.  I really loaded up.

Add this all up and the future doesn’t look so great with a Republican likely to win.  Small banks are the economic stimulators and they’ve been damaged.  95 million adults with no jobs. Obamacare mandates and EPA  regulations killing several industries. Doubled government debt that will weigh down future administrations.  The dollar might to be replaced as currency standard and that will mean everybody will pay more in interest and exports will go down.  Russia and China and Iran probably disrupting international commerce—and we got precious little military to challenge them.  You think maybe a smart guy like Joe Kennedy should get out? I suppose all you Dems are rich because your guy was in. What do you smarties think?