Jeff  Carter

Last night, the Democratic convention kicked off. They talked a lot about the choices that Obama made. I thought about those choices. Obama always takes the easy way out, makes the easy choice.

First Choice

Easy choice: Stimulus to put us far deeper in debt (Salt Water Economics) vs Hard choice: Creating economic incentives for private expansion (Freshwater Economics)

Obama made the easy choice. The stimulus went to his cronies. 99% of it was a waste.

Second Choice

Easy choice, bail out $GM vs Hard choice, allow bankruptcy process to save $GM

The President made the easy choice. Obama bailed out his cronies in the unions, crushed down the debt and shareholders of GM. A managed bankruptcy would have allowed GM to stay in business, along with all the suppliers that depend on GM-but it would have changed the pensions and salaries of all GM employees-including the white collar employees.

You lost money if you bought the GM IPO. The company is losing money, has a massive pension liability and will go bankrupt again.

GM Chart

GM data by YCharts

Third Choice

Easy choice, use political majorities to pass socialized Medicine (Obamacare, Affordable Health Care) vs Hard choice of staying focused on the Economy

Jeff Carter

Jeffrey Carter is an independent speculator. He has been trading since 1988. His blog site, Points and Figures was named by Minyanville as one of The 20 Most Influential Blogs in Financial Media.

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