-- Posted Tuesday, 9 December 2008 | Digg This Article
| Source: GoldSeek.com
Rick’s Picks
Tuesday, December 9, 2008
“Phenomenally accurate forecasts
Should investors hail President-elect Obama’s plan to create 2.5 million jobs as good news? Frankly, no. It is probably the worst news to hit Wall Street since 1935, when FDR created the Works Progress Administration with the stroke of a pen. Obama apparently intends to bring back Keynesian quackery full-bore, and with it a robust echo of Santayana’s warning: Those who cannot learn from history are doomed to repeat it. We shudder to imagine how long WPA II will delay a genuine recovery -- one based, perforce, on strong capital investment, technological innovation, lower taxes and -- let’s not mince words here – creative destruction. It took a World War to lift the U.S. economy from the 1930s Depression, but we’d prefer not to imagine what it might take to get us out of this one, espcially if nanny state welfarism becomes the central theme of the Obama Administration, as appears likely.
That said, we don’t see any good alternatives, politically speaking. Nor do we think the sort of capitalism that has brought the world economy to the edge of disaster deserves a second chance. With America slipping into economic depression, we’d sooner take our chances with home-grown socialism, at least for a while, than with the kind of economic policies that lobbyists for the banks, manufacturers and big business would clamor to implement under duress. All have been corrupted beyond redemption anyway, so let them sink or swim. We will all have to endure quite a bit of economic pain before common sense is restored to the marketplace and the wisdom of Adam Smith once again holds sway in the nation’s business schools. A generation could pass before we are able to start up the banking business anew, presumably after driving a stake through the heart of the Federal Reserve.
In the meantime, Rick’s Picks will try not to diss whatever quack panaceas percolate up through the mire on Capitol Hill. We sincerely wish Obama all possible success, knowing that in purely economic terms he cannot possibly succeed. The human dimension of the problem should be addressed first, as it will be, and we should not doubt that a benign socialism is better equipped to do the job than whatever Rough Beast the Captains of Industry could devise.
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Information and commentary contained herein comes from sources believed to be reliable, but this cannot be guaranteed. Past performance should not be construed as an indicator of future results, so let the buyer beware. Rick's Picks does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. From time to time, its editor may hold positions in issues referred to in this service, and he may alter or augment them at any time. Investments recommended herein should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Rick's Picks reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscribers’ initials will be used unless express written permission has been granted to the contrary. All Contents © 2008, Rick Ackerman. All Rights Reserved. www.rickackerman.com
-- Posted Tuesday, 9 December 2008 | Digg This Article | Source: GoldSeek.com
