President-elect Barack Obama won a historic election on a promise of “change.” James Howard Kunstler says Americans still have no idea just how big this change will be. He says we are heading into a “long emergency”, out of which a new, very different economy will emerge.
The biggest challenge for President elect Barack Obama is to stop Congress turning this recession into a depression, says Adam Lass. Reckless government spending and “crony capitalism” got us into this mess. And throwing endless credit at non-productive industries will only end up creating inflation and destroying the dollar.
President elect Barack Obama is expected to move quickly to try and revive the US economy. Theo Casey says a new fiscal stimulus will be targeted at job creation and infrastructure building instead of free handouts. However, it still won’t stop the recession. And it will add even more zeros to Treasury debt.
The election of Barack Obama does not change America’s fundamental economic flaws, says Bill Bonner. The slump caused by too much debt will continue. And a US dollar crash caused by reckless money printing is still just around the corner.
Both gold and silver did what you would expect when trading opening early Monday morning in the Far East. But, as per usual lately, someone showed up just after the Sydney close and put an end to the party.
The winner is… Deflation! Trading theme in place… RBA cuts rates 75 BPS! Manufacturing collapses! And Now… Today’s Pfennig!
What are the two most expensive goods you’re likely to buy in your lifetime? A home and a car, probably. And the news today on both is an indicator of how screwed up things are.
Quote of the Week 1: “He was born to be a senator. He never said anything important, and he always said it sonorously.” – Sinclair Lewis, Elmer Gantry
Quote of the Week 2: “Why reasonable people go stark raving mad when anything involving a Negro comes up, is something I don’t pretend to understand.” – Harper Lee, To Kill a Mockingbird
Election day could bring a change in gambling legislation in Maryland, says Laura Cadden. And this would be great news for Penn National Gaming Inc. (NASDAQ:PENN), which has the cash to expand into new operations. Laura says the new law (if passed) could give PENN a post-election spike of up to 20% in November.
Consumer shows spooky signs of weakness… recession now unavoidable? How’s your 401(k)? Some scary stats on the average retirement savings plan. Haunting mortgage data… 10 million Americans suffer “negative equity”. U.S. finance capitalism dead or dying… Byron King on the new paradigm for global economic power. Eric Fry on investing during the post-crash bounce. Plus, one “surefire” sector during these frightening times.