7 replies to this topic

[Steve Netwriter]

What does an Obama Administration mean for investors?
http://cij.inspiriting.com/?p=577

Now that the initial euphoria of the Obama election victory is over, it is time to get back to reality. No doubt, although Obama’s victory is very meaningful for the aspirations and dreams of millions of African-Americans, the truth is that nothing has changed fundamentally. America’s economy (and by extension, the global economy), is still in a mess. On the geo-political and foreign policy front, there are still a lot left to be desired. Although we admire Obama for his victory against all odds, we would not like to be in his shoes because the tasks ahead is colossal. After 2 terms of mismanagement under the previous administration, we doubt Obama could undo all the damages very quickly.

As investors, we will leave the politics aside and look at what the implications of an Obama Administration for investors:
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This is not to say that if hyper-inflation ever happen, it will arrive soon. Such development can take many years to unravel.

[notanewmember]

Invest as if there will be a war soon?

[Steve Netwriter]

Recipe for hyperinflation
http://cij.inspiriting.com/?p=337

There is no way any politician can sell the message that America needs a severe recession (or even a depression) to cleanse the economy from the gross excesses, imbalances, blunders and mal-investments. Thus, it is very likely that they will have to fight deflation till the very bitter end, till the last drop of blood from their last soldier.

Since the current structure of ‘rules’ will be too restrictive in such a war against deflation, there will be popular momentum towards the bending and rolling back of these ‘rules.’ If they press on relentlessly till the final end, there can only be one outcome: the US dollar will be joining the long list of failed fiat paper money in the annals of human civilization.

Since the rest of the world’s currencies are as fiat as the US dollar and are based on the US dollar standard (see How does the US export inflation?), you can be sure the result will be ugly for the global financial system.

[Steve Netwriter]

Invest as if there will be a war soon?

Ah ha, so you're the guy who has a picture of my gold  

I've nicked your Dow-Gold ratio chart to compare with my S&P500-Gold chart

http://www.greenenergyinvestors.com/index....ost&p=74742

[notanewmember]

Thats OK I nicked it from somewhere else ...

[Steve Netwriter]

November 10, 2008
Barack Obama backs plea for Henry Paulson to extend bailout to car industry
http://business.timesonline.co.uk/tol/busi...icle5119805.ece

Barack Obama, the US President-elect, has thrown his weight behind a plea to Henry Paulson, the Treasury Secretary, to use some of his $700 billion (£444 billion) bailout fund to rescue America's car companies.
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However, since the election of Mr Obama last week, the appetite for throwing a lifeline to the car manufacturers appears to have grown.

In his first post-election news conference, Mr Obama said that his transition team was compiling “policy options to help the auto industry adjust, weather the financial crisis and succeed in producing fuel-efficient cars here in the United States”.

Mr Obama defined the failing car industry as “the backbone of American manufacturing” and indicated that he would be more aggressive in rescuing it than the Bush Administration has been.

[Steve Netwriter]

John Rubino
Obama - A Look Ahead *AUDIO*
http://www.howestreet.com/audio/johnrubino_2008_1105.mp3

[romans holiday]

November 10, 2008
Barack Obama backs plea for Henry Paulson to extend bailout to car industry
http://business.timesonline.co.uk/tol/busi...icle5119805.ece

Also from the article.

Mr Wagoner, who said that the liquidity crisis has put an end to GM's merger talks with Chrysler, also gave warning that banks had stopped offering credit to car companies to fund their restructurings

Remind me again, what was the idea behind TARP money? I think the banks are either going to hold onto the new money or invest it in treasuries.