I read an article in CNN written by economist Steven Kyle. The article is spot-on discussing the chain of events that could happen if the United States were to default its debt. His solution is quoted below:
“Were I advising a low-income country that had no choice but to listen to my advice, I would have a simple message: “You got in to this mess by passing huge tax cuts over the past 10 years and starting two wars that clearly have gone as far as they are going to go in terms of achieving your goals. So just let those tax cuts expire next year and end the two wars and you will have done more to reassure long-term investors than anything else you could possibly do. That will give you the room you need to make investments to start growing again.”
I agree with eliminating the two wars. I do not agree with letting the tax cuts expire as I believe that the government still rakes enough tax income to support most social programs and keep the machinery running. I would eliminate a lot of the pork barrel spending. I would also pass special legislation that would ban representatives and senators from being contacted by think tanks and special interest groups such as lobbyists. I believe that lobbyists are scum of the earth and this government formed “by the people and for the people” has morphed into this bestiality that is controlled by those whom has the most money. Reduce taxes of small business to spur jobs and innovation. Lengthen the school year by one month to prepare our children to compete the BRICS and the N-11 nations. Open the borders to allow the best to immigrate to this nation. After all, this is a nation that was formed by revolutionary events and as such it should continue the revolution in the form of technological innovation and international influence.
Do you want the government to reduce the deficit? Tell your legislators to cut the head of the beast first (aka special interest groups).
Switching gears to the indexes. The SP-500 did a bouncity bounce off the 200-day moving average line. A nice event but not a definite one. The machines know that many traders set stops around those levels so I would not be surprised if there is a broad and quick sell-off to scare the weak hands as the 200-day line is breached. I have been long and taking a beating but so far I have not seen indications of a double dip bear market. However, I have not finished running my scans. My opinion of the market can turn on a dime. Remain Flexible.
SP500 daily 7-29-2011
Popularity: 4% [?]
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A Crazy Proposition
I read an article in CNN written by economist Steven Kyle. The article is spot-on discussing the chain of events that could happen if the United States were to default its debt. His solution is quoted below:
I agree with eliminating the two wars. I do not agree with letting the tax cuts expire as I believe that the government still rakes enough tax income to support most social programs and keep the machinery running. I would eliminate a lot of the pork barrel spending. I would also pass special legislation that would ban representatives and senators from being contacted by think tanks and special interest groups such as lobbyists. I believe that lobbyists are scum of the earth and this government formed “by the people and for the people” has morphed into this bestiality that is controlled by those whom has the most money. Reduce taxes of small business to spur jobs and innovation. Lengthen the school year by one month to prepare our children to compete the BRICS and the N-11 nations. Open the borders to allow the best to immigrate to this nation. After all, this is a nation that was formed by revolutionary events and as such it should continue the revolution in the form of technological innovation and international influence.
Do you want the government to reduce the deficit? Tell your legislators to cut the head of the beast first (aka special interest groups).
Switching gears to the indexes. The SP-500 did a bouncity bounce off the 200-day moving average line. A nice event but not a definite one. The machines know that many traders set stops around those levels so I would not be surprised if there is a broad and quick sell-off to scare the weak hands as the 200-day line is breached. I have been long and taking a beating but so far I have not seen indications of a double dip bear market. However, I have not finished running my scans. My opinion of the market can turn on a dime. Remain Flexible.
SP500 daily 7-29-2011
Popularity: 4% [?]
Related Posts:
About the Author