Politics & Profits
Research for Online Investors

by John Dalt

03/05/09

I have tried to avoid politics in the last few days, as my wife said the newsletter was too political. Moreover, she is always right.

I supported President Bush on most issues, but was upset that he did not veto some of the spending.  I thought he spent too much, remember Medicare reform?  Politically he could not veto bills coming out of a republican congress, and they could not say no to his initiatives.  A real witch’s brew that led to deficits beyond necessary, even considering 911. 

Katrina was a mess because of stupid people, Michael Brown as head of FEMA, and everyone in New Orleans.  From the police that were stealing merchandise, to the citizens that did not leave after warnings or take any responsibility for themselves.  Do not forget Mayor Nagin, the race baiter extraordinaire. 

Iraq was justified, but he put an idiot in country to shepherd a new democracy that did not have any idea what he was doing, remember Paul Bremer?  He is the guy that told the Iraq militia they could not serve or even work in the new government, putting 100,000 unemployed men with rifles on the street! 

Bush was depicted as a big spender, partisan, and any other negative that could be uttered.  The national media was very willing to put Harry Reid and Nancy Pelosi on TV every night lambasting the president.  I never saw the president attack them.  I read he refused to have the White House respond to the attacks because he thought it was demeaning to the Presidency. 

So what do we have now?  A big spender?  Only if you call $2 trillion deficits big!  Partisan?  What did he say, “I won, and that was decided in the election.”  A narcissist?  While he was a law professor in Chicago, he wrote a book about the most interesting subject he could think of, himself. 

He and his group of socialist friends are working to destroy our country.  If you do not get involved NOW, when?  You can reach out and touch ‘em at: 

• Obama:
    http://www.whitehouse.gov/contact/    
• Get your senator’s email at: http://www.senate.gov/general/contact_information/senators_cfm.cfm   
• Make sure your representative knows how you feel http://www.house.gov/ 

Do it a couple of times a week.  Share these with your friends, and help stop the train that is running over us.  Let them know if you agree with the pork laden out of control spending, and social ‘Change’ they are pushing. 

Whew! 

The market continued its downward trend today. While the market burns, the administration has a health care forum to make happy talk on how to nationalize the nation’s medical care, and Barney Frank spews more venom about banks. It seems no sector is safe from being destroyed by Washington fiat, and the worsening economy. Oil, gold, silver and treasuries looked ok today as investors fled to hard assets and safety. 

I am 100% long right now, and taking a beating.  I just cannot bring myself to short stocks when they are sitting on their lows, and almost all of them are.  I think we could see a bear market rally of biblical proportions in the next few days.  However, that may be my optimistic bias showing through!  As I have written before, the market is re-pricing lower earnings at a lower P/E ratio, which really drops values on stocks.  If you are sitting on losses, sell into the next rally, as there is probably more pain ahead.  I opened a new position in USO yesterday in the Swing Trade service, oil may get cheaper but we still use a lot of it!  I think gold and silver will go lower.  They were working down even as the market was seesawing down, and there is still farther for them to fall.

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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