Mad Dog Mean
Research for Online Investors

by John Dalt

10/29/10

We all get to vote next week, and help determine what the government will do for the next two years.  What will it be?  It looks like many of the “Tea Party” candidates are going to have some success.  We only hope they are a load voice in Washington and not co-opted by “go along to get along” republicans once they enter the hallowed halls.

In an election cycle when the President of the U.S. tells an audience that they “Have to punish our enemies” I am reminded of a term from Clint Eastwood in The Outlaw Jose Wales, “When things look bad and it looks like you’re not gonna make it, then you gotta get mean, I mean plumb MAD-DOG MEAN.”

Our country has been brought to its knees by mistakes made in the past six years (90 years). The suspects run the gamut of the political spectrum. From President Bush to Alan Greenspan, Barney Frank to Harry Reid. Or, we can go back to Presidents; FDR, Nixon, Wilson, Johnson, there are too many to mention in one article.

Is there any doubt the last two years has seen the administration capitalize on the credit crisis to further their vision of ‘social justice’ and increase the size of government?  Rather than encourage producers and entrepreneurs, they vilify any group that raises questions about their policies.

What does the world see in America?  The “Shining City on the Hill” or the city of Detroit hallowed out by liberal policies for the last fifty years?  Will the future of the U.S. be to follow the state of California into the abyss of run-away social programs, open borders, and environmentalism?  We can only hope not.

It is easy to always say “yes” to any citizen, group or industry that requests special treatment from government, you make no enemies.  That is until the taxpayers realize the politicians are picking their pocket to buy elections with dependent voters.

We hope our country has not reached the tipping point.  It appears California has.  The legislature could not produce an honest balanced budget.  The voters appear ready to elect “Moonbeam” Jerry Brown as the next governor, and put Barbara Boxer back in the Senate.  Wow, talk about denial.

Charles Krauthammer describes President Obama as a narcissist with a ruthless thirst for power.  According to the Pulitzer Prize winning author, Obama’s goal is to “change everything, including dismantling capitalism.” Obama wants the government to control Education, Health Care and Energy.

Thanks to subscriber D.F. for alerting us to this article from the Heritage Foundation concerning taxes.

I am out of the office part of the day today.  I must source my Halloween outfit, a “V for Vendetta” mask and cape.  The movie is about a lone crusader against a fascist government.

To the mailbag:
Does anyone really believe that the losers will say, “I’m sorry for TARP, the Healthcare Law, not extending the tax cuts or giving myself a raise.”?  “Lame ducks,” just hope that they are old enough, and have accumulated enough of our money, so that they can retire and not have to go into the real world and earn a living!-paid up subscriber R.A.

John’s reply:  I am a little more Old Testament.  I would like to see them work for a living, and suffer failure.

I have been trading notes with my neighbor who has had
some recent luck with REE (Rare Element Resources Ltd)  Would you have an opinion about this stock?- --subscriber R.V.

John’s reply:  We can’t give personal investment advice.  But, I am familiar with REE.  We like MCP better as they are closer to production with their mothballed mine in California.  We have traded MCP in the SwingTrader twice in the last two weeks for profits.  Both got hit yesterday after China announced they would resume shipments of Rare Earths.  I would stay away from both right now, but look at MCP for a better co to play the rare earth situation.

Kiplinger's had an article on the effect it would have if Republicans gained control of the House but not the Senate.  They said that the resulting gridlock has been historically bad for investors when Reps control one house and Dems control the other one.  Any ideas?---paid up subscriber E.B.

John’s reply: Of course it would be better for conservatives to have majorities in both houses large enough to override a Presidential veto, but we should be thankful for the small check the House can put on the run-away government. It certainly cannot correct all the mistakes of the past, but stopping most and reversing some will be welcome. We cannot continue down the present socialist road.  The worst for investors.  The present market is held up by government intervention.

Editor’s note:  Ronald Reagan’s policies caused bankruptcies and hurt some companies that had made bad investments based on inflation and prior government policies.  All the more reason to subscribe to one of our investment services, the Long Term Portfolio or Buy, Sell, Hold.

Quote:
If ever a time should come, when vain and aspiring men shall possess the highest seats in Government, our country will be in need of its experienced patriots to prevent its ruin.--Samuel Adams, 1776

The information presented in this newsletter is based on generally available news releases, corporate filings, current events, interviews and the editor’s opinions.  It may contain errors and you should not make investment decisions based solely on what you believe you have read here.  Do your own research, it is your money.  If you lose it, it is your responsibility, not ours or your grandmothers!  The editor may or may not have a position in any securities discussed.  The editor may have held a position in a security earlier, or in the future.

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