TheTaxedMan

WDC, LLC gone wild. Now even their insiders are saying enough! All rookies make beginner mistakes....the problem is this will last another 3 and half years....BUT like Clinton (although Bill was a fiscal conservative)....the best thing that happened shortly after taking office.....almost nothing got done....classic gridlock...it should be no surprise we have had the biggest eleven days in many years for the equity bulls, the bears have been crushed....maybe too crushed....time again, for some summertime profit taking.

Noteworthy observations:

1) How did the nominee for the Supreme Court get so easily through the Judiciary Committee's hearings....she was very prepared, rehearsed, coached and professional. Most people take the preparation stage before an event far too lightly....you can always spot the well prepared professional...they make it look easy....they are not winging it.
2) How can it be nobody is asking what our "policy" is for Afghanistan...record numbers of kids are being killed now at war///how about the cost? Troop numbers are being increased....the press does not even mention it.....the USA press has turned into a national/ global embarrassment.
3) Why have the pirate attacks stopped? Its summer.. the ocean waves are too big from the storms....expect them to pick up again the autumn.
4) India tells our esteemed Secretary of State to take a hike....on global warming...again no press....how can this be "allowed" by the number one or two most populous country in the world....and she apologies for the USA again....coal equity shares go limit up the next day in China. India's biggest problem right now remains water....their monsoons are very light.......
5) Top economists are saying current debt and compounding liabilities are growing faster than the economy...and that we may have most likely passed the point of no return....i.e. we can't pay it back..(India and China have already figured this out). In the UK they have certainly passed that point.
6) The Fed Chairman said this morning, this years current deficits... run rate.... into next year is unsustainable...and that interest rates will remain low for the foreseeable future....that could be dreaming and self serving ....his monetization of the national debt will last for another six months max.
7) In Russia the local banks have had to reach an agreement to not offer interest rates above 18% to pay depositors to keep money in their banking system.....Their Central Bank lowered interest rates to 11% on Monday...talk about inflation and devaluation of their currency...but their stock market is up and cheap!

Probably the biggest miss by the press, is the fact that Bush tax cuts (which means all taxes are going higher) expire next year....current new health care tax levels are being assigned to and on top of the wrong math. If you throw in local sales tax, with state, federal, the new surtax, medicare...plus plus plus....you are already through 65% approaching 70%....all by design in the Chairman's first six months in office.

We believe any measurable growth in new jobs will be small......smart investors have four main goals to accomplish in short order.

a) Protect your assets adjusted for inflation and devaluation of the US Dollar..a double whammy. b) Get ready for materially higher interest rates....lock in now anything you can. c) Get ready for materially higher tax rates....so you will have less to spend..big problem....d) Keep tax loss carry forwards, seek out tax advantaged income..this is hard because the current generation of investors/ advisers has no experience at this...but their are many attractive options.

Danny Boy seen here looking out for the Taxman.