And He who loseth wealth, loseth much
He who loseth a friend, loseth more
He who loseth his spirits, loseth all
The Dow closed down Friday for the 12th time in 13 sessions, the first time that's happened since October 8, 1974. Obviously, it's a red flag and a negative sign. I think it's more an indictment of lack of leadership and its potential impact on the economy than current economic circumstances. The dollar continues to surge against the inept Euro, and the more the dollar moves up, the more money leaps out of stocks and other assets into US treasuries or the sidelines—both very crowded places and both losers to inflation. Of course there is an argument that deflation is back in play, which I don't believe, but pessimism could make deflation a self-fulfilling event.
One thing is for sure, the market is drowning in a sea of doubt. There are a bunch of leaders clinging to the idea of redistribution of wealth, more debt, and less discipline.
If this is the end of the road, then it must be time to split the spoils. This has been part of the administration's goal from day one with redistribution policies that would be anything but mutually beneficial. Those who buy into the idea that taking the results of one person's hard work, sweat, and dreams and giving it to someone else that had nothing to do with the creation of that wealth have a misguided notion of how symbiotic relationships are supposed to work. In fact, it's not ideal, it's not fair, and it's not American.
There is a huge difference between helping unfortunate neighbors and simply taking money from one person that earned it and handing it to someone else in the notion of leveling the playing field.
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