Psycho House

1/21/2010

The Day Democracy Died

We the People , in the USA,  just became We the Corporation . In a real sense all campaign finance reform has been virtually abolished . The US Supreme Court in a partisan 5-4 decision gave corporations and their lobbyist (or any entity) the permission to spend whatever they want on any election . Any candidate who dares stand against any wealthy special interest can be threatened and overwhelmed by money in an election. For more read the lead NYT editorial The Court’s Blow To Democracy

It may take a few years for the real impact to be felt. Here are s ome examples

  • Locally Developers and corporations will be far more able to buy town and state politicians who appoint the local zoning boards and make the laws. If they want to put a strip mall next to your home and crush the value of the houses in your neighborhood they can.  Businesses on the local and state level will get to pay less taxes and YOU will have to pay more.
  • Big Shadow Banks – YOU bailed out the big banks for their mistakes and they got HUGE bonuses. Forget Obama’s declaration to fight the Shadow Banks. Goldman Sachs (4.3 billion in profit last 1/4) and the other shadow banks know can throw billions at politicians that oppose any taxpayer bailout. The bailout era may have  just begun .
  • Military Industrial Complex – Any weapons company knows it needs a war and fear mongering to grow profits.  Now they can spend whatever they want. The criteria for choosing a weapon will also change from its effectiveness to whichever company has the most money to intimidate a politician. If a poll doesn’t support a war/weapons system they can overwhelm him/her in a reelection with money.
  • Monopoly s – The biggest winners are the biggest companies. In every industry the most powerful company rules. It will be far easier forcing smaller competitors out of business once the giant corporations own local state and national politicians. Example EXXON – The biggest corporate entity will have the most money and therefore own the most politicians. Each competitor will get shoved aside or gobbled up starting with small business and ending with their major competitors.
  • Freedom No other functioning democracy allows the legal corporate buying of politicians . People have the power in these democracies. The corporate board rooms in the USA will be the oligarchy where decisions are made on everything from taxation to your freedom if you dare to challenge their power.
  • Taxpayer – The taxpayer has been thrown under the bus.  As corporate taxes fall either deficits will grow or you will be forced to pay the difference.

There will be some corporations and individuals (perhaps Google & folks like Warren Buffett) that will work for the betterment of the world. But greed/profit is the bottom line for corporations. Your $25 contribution or work for a candidate can be overwhelmed by Exxon’s or Shadow Bank’s  $2.5 billion contribution. Our constitution centuries ago was  created for We the People – now its changed to We the Corporations. Remember yesterday 1/21/2010. If there is no change – Democracy as we know it has died.

KISS & Stocks (Keep It Simple Stupid)

If you don’t understand a term look in up at Investopedia.com dictionary

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING!

Index Percentage Volume
Dow -2.01% up
NASDQ -1.12% up
S&P500 -1.89% up
Russell2000- -1.76% -

Investors411 record – 5 years of beating benchmark S&P 500 and almost all major US indexes

Technicals, Fundamentals & Analysis

See Positions , Strategy , and Overview for changes made over weekend.

US stocks got toasted in HUGE volume.

Obama threw down the gauntlet at the shadow banks and stated he never wanted to see an institution that was too big to fail. "Never again will the American taxpayer be held hostage against these banks that are too big to fail."

However, the Shadow Banks now have the power (see above) & enormous amounts of money (lots of it your tax dollars) to defeat any meaningful reforms.

  • McClellan Index at -49.56 = Almost significantly oversold.  Only 10 points till  @-60 or oversold.

Sorry, just too upset about Supreme Court decision to even think about stocks.  However, obviously, investing in the biggest corporations, in the long term will make the most money.

Positions

The  Positions Section (also at top of blog) has the latest buys and sells (Usually updated over weekends)

These are positions I actually own

SELLING & BUYING

See POSITIONS (scroll down) for details on this and what’s under consideration for 2010.

Long Term Outlook = CAUTIOUSLY BULLISH

AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING

  • Share/Save/Bookmark