Where Will The Markets Close This Week?

7 thoughts on “Where Will The Markets Close This Week?”

1. I like reading what they have to say. Perhaps you know too much and just don't

   need Market Club? You are a cool man Carl, so which is it?

   regards

   Thomas

2. I'm not sure the average American understands how bleak the outlook is. America is shipping jobs to China because we live in a global economy and the true value of manufacturing jobs is being reflected in Asia, not the high-priced wages of Americans. Economics is ultimately politically neutral, and any attempt to save "buggy whip" jobs for political gain will ultimately end in failure. In fact, it was the government's policies towards saving outdated jobs that helped lead to the US losing its competitive edge to begin with.

   For example, the government refused to let North American steel mills close for 30 years to save jobs. The result? A bloated inefficient industry that is desperately trying to keep up with Chinese and Indian mills who have superior technology, better steel, and lower costs. Government interference promoted by U.S. steel industry special interests over the years killed the domestic industry and allowed foreign mills to take over 80% of the global market. A mill that used to employ 1200 people can now be run by a crew of 30.

   But it gets worse...Everyone thinks the answer to America's problem is innovation; you know, the kind of stuff that gave us a man on the moon and Apple computers. All we have to do is educate our population to a higher level of technical skill and we'll be right back in the driver's seat putting those foreigners in their place. Sorry...it ain't going to work this time.

   While America's been making cuts to its education system for decades and applauding under-performance, mediocrity, and pop culture, the developing world has been plowing funds into advanced education. There are now more students in private advanced technical education in China than there are students in the entire United States (please read that last sentence again to get the full impact). Meanwhile, patent applications from the U.S. have decreased over the last five years, whereas patent applications from Asia have skyrocketed.

   So, the U.S. can't compete in manufacturing. And it's no longer the world leader in innovation, its traditional area of salvation. What's left? How many fast food workers does one nation need?

   And as if that isn't enough, America -- the food basket for the world -- is now a net importer of food because of a government policy that sees the country burn potential food for fuel. When inflation REALLy gets going and all those unemployed people can't afford to eat, it will make riots in Egypt look like a picnic.

   Just watch what Adam calls "the Bernanke nightmare," also known as the CRB index, and you'll see the crisis forming on a chart right before your eyes.

   I honestly can't see a way out of this mess for the U.S. In the 1980's Volcker ramped up interest rates to keep inflation under control. But the economy had more savings in those days and could withstand the hit. Now, a dramatic increase in interest rates would be a final bullet into the nearly dead, which is what America is with its current debt levels and unfunded liabilities.

   Unfunded liabilities, one example: You see, most countries, like Canada, for example, set aside actual money for things like retirement. Every employed worker pays into a fund for his/her eventual retirement and the money is invested for their use when they retire. But not the U.S. It prints a giant IOU for the money, because in an act of supreme arrogance (or stupidity) it was assumed the money would be there for all the retirees. Well, last year the first of the baby boomers came looking for their checks...and guess what? The U.S is about $14 trillion short...and counting.

   America is about to find out what it's like to be poor. And it won't be pretty. Oh, and taxing the rich?...forget it, they're the first to leave for greener pastures if only because they can. Corporations are already pulling up stakes because of a 35% corporate tax rate (Canada's is 19%)and the wealthy have already started the egress to join their assets in other countries. Welcome to Canada!...and Switzerland, and Singapore, and Hong Kong, etc.

   Unfortunately for the Average American, once that can gets picked up way down the road, he, his children, and his children's children are going to be paying the tab...for a long, long time.

3. Down we go, mateys.

4. How about a Direct Tax on carbon generation, made especially "transparent" in order to persuade more users (all of us) to think about and incentivise toward non-carbon generating sources. Windmills have drawbacks including bird and bat slaughtering, humming, low availability. Solar has low availability, especially at sundown, also requires a substantial levelized cost partly balanced by no carbon tax on their energy product.

   Hydro-electric (damned dams) disliked by naturalists,spawning fish and probably others.

   I would like to see much greater use of geo-thermal sources, with 95% availability, the output can be used for baseload electricity. Great "hot spots" recently discovered in West (by god) Virginia but its coal mining industry would probably prevent or at least slow down geothermal development.

   Earth movements, called earthquakes in Japan, are a design restraint but "The Geysers" near San Francisco has been operating for a century and still going strong.
   Smaller generating modules on displaceable platforms might reduce quake caused interuptions.

5. The President spoke of a fair and balanced approach. Is it fair and balanced that GE paid zero taxes while some Mom working at a donut shop pays more than zero?

6. Hi Adam,
   again thank you for the daily no-hype market update, this is very helpful to me
   in this volatile market.

   Re: your comment about GE not paying taxes --
   I think we all favor a free-enterprise, open-marketplace
   with only minimal & effective government regulation to protect people and the environment
   from a ''profits at any cost'' mentality.
   So with a huge part of our deficit going for Wall Street Bail-Outs
   for the ''too Big to Fail'' Banksters whose unregulated derivatives caused our recession,
   and many of global corporations paying little or no taxes,
   it always seems that the small to medium business owner gets the worst of it,
   while the TBTFs hire lots of lobbyists with plenty of dough to get what they
   want from Congress.

   So if all those lobbyists with all their campaign contributions would tell Congress
   to grow up and get intelligent,
   I think we would have better government --
   but it seems like neither of the big-two political parties
   or the lobbyists who pay their re-election bills want to solve problems
   so that average folks can pay our bills, raise our families and have a future to look forward to.

   Oh well, thanks for letting me vent.

7. Absolutely no useful information.

   Thanks a lot.

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