And in truth, the sequester's impact may be bad. Rep. Maxine Waters of California, a 22-year House veteran and ranking Democrat on the Financial Services Committee, this week warned of "over 170 million jobs that could be lost." That's actually more jobs than America has, and it's little comfort to say, "But she's a famous idiot," because Washington is full of famous idiots who are making serious decisions about how the sequester cuts are to be applied.
This is from Noonan's WSJ editorial, Maxxine Waters is the "ranking" Dem idiot. I have always suspected that most members of Congress didn't know how many zeros were in a trillion, now it's a thousand, no wonder we have run amuck, they have no idea the size of the numbers. Peter used to say that most people don't understand numbers and I am beginning to think he was right. You have to read the whole piece. Woodward calls the things coming out of the White House, "madness". I think the media and maybe more of the public is starting to ignore his fear mongering. Not saying we don't have problems to deal with, but his approach not going to do it. And here we are after the sequester, and the world didn't end.
I just got two pieces of mail from unknown banks, one trying to loan me money to consolidate my credit card debt at a 8% interest rate, don't have any, cc debt, and another offering a 3.5% 15 yr mortgage, don't have a mortgage, but that does sound attractive. We just might be in the early stages of the "mother" of all asset
A thought for my fellow CEOs: Of course, the immediate future is uncertain; America has faced the
unknown since 1776. It’s just that sometimes people focus on the myriad of uncertainties that always exist while at other times they ignore them (usually because the recent past has been uneventful).
American business will do fine over time. And stocks will do well just as certainly, since their fate is tied to business performance. Periodic setbacks will occur, yes, but investors and managers are in a game that is heavily stacked in their favor. (The Dow Jones Industrials advanced from 66 to 11,497 in the 20th Century, a staggering 17,320% increase that materialized despite four costly wars, a Great Depression and many recessions. And don’t forget that shareholders received substantial dividends throughout the century as well.)
Since the basic game is so favorable, Charlie and I believe it’s a terrible mistake to try to dance in and out of it based upon the turn of tarot cards, the predictions of “experts,” or the ebb and flow of business activity. The risks of being out of the game are huge compared to the risks of being in it.
From Buffet's annual letter, not much extraordinary there, he does say BNSF is now hauling 500m/d of oil.
I am fairly bullish on the market, but trying to determine if it's just a reflection of the last four years gains. Or the energy boom that doesn't seem to want to quit. Buffet does talk about his energy bets, major ones in wind and solar.
Yes the "Law of Large Numbers" is very confusing to folks that don't use math or don't invest in the stock market. Have we reached peak stupidity in our government leaders? Hard to say, I am not sure if the younger generation gives a damn. They seem to think that Uncle Sam will take care of them. He might do it, at least until the music stops.