The Middle Class Has to Finish the Job
As they often say, there are a lot more middle class people than any other group. Now they have to finish the job that the markets started in 2008. They have to firmly entrench and expand the reforms started and build on a new base over the next 5 years.
The markets this year have been entranced with the illusion that the Political Super-Pac’s will bring back the g0-g0 globalized agenda of building a bigger asset base for the high upper class. Since politics is talking about what constitutes the start of the upper high asset group I would say that the $ 250,000 threshold is probably low and $ 500,000 is more reasonable. In any case, the future of this country is in the hands of those in the middle-class.
The middle-class got a lot of help from the Supreme Court decision and they still need to fight to make sure Dodd-Frank regulations are instituted in a strong form. They have to make sure that no bank is too big to fail’. James Carville and Stan Greenberg were interviewed on MSNBC’s “Morning Joe” this morning concerning their new book “Its the Middle Class, Stupid” and one of the important things that resonated with me is their belief that the middle class does not believe the short-term bull of any politician, they are looking long term. What this means is that they are focused out 5 years or more and this thinking will help them to focus during the coming cleanout and base building period.
The stock and gold markets at the moment are trying to hold some recent lows and more short-term lines in the sand are being drawn. We expect those lines to be shattered over the next 3 weeks.