Romney-Ryan could Win….and what it means
Our generally defensive overall posture continues with our best position at the moment being the short T-Bond position. While this trade is part of a long-term perspective, we will take it off today as the good economic good news of the summer has probably run its course and there should be opportunity to reinstate it again on the next bad news rally. We will retain short stocks, long dollar, and a small short gold position. I know, we are getting rid of our profitable positions and keeping our unprofitable positions.
As to the coming election. I find it comical that the liberal press is making fun of Romney’s choice, but it does create a ticket that will resonate with a big part of the population. That population is the crowd that gave us Reagan supply side economics, the Laffer curve, Jack Kemp, and other gems that started the deficit we see today (take a look at the Political Talk 2008 segment on the main part of this site).
This same mentality was a big factor leading to the various bubbles and inequality that we see today. In my mind they could win handily in this election because they pander to the belief of seeking wealth by any means and that plays to a lot of people. While they talk of the poor having their hands out all the time, they work through Washington lobbyists to move more and more wealth to their side of the ledger. This mentality has been a big factor in the stock market and real estate bubbles with their quest to take risks on soft ideas. This same crowd thinks it is ok to move jobs and money offshore and let the middle class die.
By the same token the progressive and liberal crowd has missed a big opportunity by not pushing social security and medicaid reform as a package with the health care reform law. They have missed an opportunity and are leaving themselves open to fight soft/bad ideas that play to the uninformed.
On the optimistic side we all have the opportunity to handle our assets in our own way. The Romney-Ryan plan, which is austerity packaged as a big economic dream, will in my mind, through the markets bring about what the Democrats have not able to accomplish in Washington, and that is making a big dent in the inequality equation. That will occur by definition in a major market decline where the 10 percent who own 90 percent of the private assets, lose 75 percent of it through their economic actions.
The right wing crowd didn’t trust him and he had to get one of their people on the ticket. What