Victory is at Hand
It has been a long 18 years since I left the Republican Party and repudiated what I had been part of for the prior 20 some years. I started my trading company in 1979 and initially embraced the Reagan trickle down economic formula. It was a big personal mistake and the ramifications have multiplied over the ensuring 40 years. Thankfully I saw the light in 2003 and have worked and talked about how wrong that formula has been for 18 years.
Ironically the COVID pandemic has helped trigger that change. Biden’s infrastructure and jobs program is the vehicle for that change. Huge changes are coming in where government money is going to flow and how it will be used. Taxation changes will be slow but the direction is changing. No doubt the changes could provide a window for Republicans to win seats in 2022 but the long term direction of the wind has changed direction.
This should bring about less speculation and more work. We can only hope that the time will come when there will be no reason to watch CNBC. So we are looking ahead many years, but change takes time.
The chart below illustrates how out of kilter the stock market is versus GDP. You can see that, no doubt starting with Greenspan and continuing through the Bernanke, Yellen, Powell legacy, that a phenomenon of unreality started in 1994 and continues to this day. 25 years of keying on something beyond education and work. Shameful. And this chart is just through the end of 2020, things are even more stretched today.
Embedded in all of this is the fallacy that low interest rates will solve all problems through the trickle down effect, when in fact more targeted responses would have been much more appropriate and for sure have led to much less inequality.