Ben Bernanke Should Directly Confront Investor Fears

Malpass is right! There is little or no confidence in Obama, his many stimulus programs, and his anti-business agenda. That is why businesses are sitting on cash, and not hiring. That is also why people are buying gold and silver, and not investing in stocks.

By buying stocks an investor is saying that he/she believes that company can prosper ...

As long as Obama is in office, the wet blanket effect he casts on the American economy will endure. If you want to see a stock market rally, you have only to see Perry, Romney, or virtually any one of the GOP candidates win in Nov. 2012.

The real question is: Can we make it that long?

If someone wanted to put Obama in office that was not a fan of the United States, perhaps lets say for kaka an giggles, the word Sabot comes to mind. The wooden shoes that the Dutch wore back when they decided their dirty selfish bosses were not providing them with the funds and working conditions they deserved, so they tossed their sabot wooden shoes into the machine they ran at work seizing it up, hence creating the word sabotage....

What archives did I pull that tid bit of worthless information out of, none other than Star Trek II the Wrath of Khan. And many would agree the best of all the Star Trek motion pictures. Lieutenant Saavik (Vulcan no doubt) mentioned that, aka Kirstie Alley, lol.....

Here is a quote below from wikipedia....


"That it derives from the Netherlands in the 15th century when workers would throw their sabots (wooden shoes) into the wooden gears of the textile looms to break the cogs, fearing the automated machines would render the human workers obsolete.[1] However, there is no contemporary source verifying either this behaviour or a source verifying the word being used in this sense before the 19th century.
That it derives from the French sabot (a wooden shoe or clog) via its derivative saboter (to knock with the foot, or work carelessly).[2]
That it derives from the late 19th-century French slang use of the word sabot to describe an unskilled worker, so called due to their wooden clogs or sabots; sabotage was used to describe the poor quality work which such workers turned out."

Not much point risking money on businesses when you can lend to the gubmint risk-free.

True... and that has worked well in the past. If the government does not do an abrupt about face, however, it is likely that they will collapse the US dollar. If that were to happen, all the people who piled into government securities would be VERY surprised by the results.

Even without that, I don't think that we have seen the last of the US debt rating downgrades. Yes, S&P got slapped for their efforts and Moody's and Fitch got the message... which was, hands off the US debt rating - it's a sacred cow! The market, however, is WAY more powerful a force than any debt rating agency and the market is quite able to downgrade US debt at any time simply by refusing to buy it. Bill Gross of PIMCO sold all of his US Treasury paper and refuses to buy any more of it. He's no dummy. Others may very well follow suit at some point although not so far. We'll see, though.

I once knew a very wise old man who said, "Son, something is only worth what you can get for it... no more and no less". He was right, as usual. Treasury paper will always have value as long as people are willing to buy it. Consider this... both US dollars and US Treasury bonds or bills are all paper. When buying and selling these things, one is merely trading one kind of paper for another. I feel as if I am doing the very same when I buy silver... exchanging one kind of money (fiat) for another (real). And we all know which kind is likely to outlast the other!