I stayed up until 1:30 AM last night, watching the third presidential debate. And unlike the previous two debates, this one was real testy.
Within about 20 minutes, McCain was openly angry. He tried to hide it, but just because you try and smile when you’re pissed doesn’t mean other people can’t tell.
Obama, on the other hand, didn’t get angry until about one hour into the debate. But once he got steamed, it was very obvious too. He couldn’t come close to hiding how he felt.
Why were the candidates ready to kill each other? One of the biggest reasons was that the debate was about domestic issues. Then they were also asked about the negative advertising they had been running against each other.
It wasn’t pretty.
But perhaps the biggest thing I noticed about the debate was how these two candidates have embraced the center. It’s gotten to the point where you really can’t tell the difference between the two. For example…
Both candidates are advocating heavy tax cuts
Both candidates think we need stiffer regulation in the financial arena
Both candidates have proposed huge spending increases
Both candidates have embraced alternative energy
You see, tax cuts are something the right typically advocates. Spending increases are something both parties have done lately. And the stiffer regulation and the love for alt energy is typically something the left proposes.
These candidates have so many policies that embrace the center, that it’s nearly impossible to tell them apart (well, in social issues they are VERY different).
Now, I’m not writing this piece to advocate one candidate or the other. In my opinion, they are both very capable. Instead, I’m writing this to point out that politicians often say whatever they can to get elected.
If Obama gets elected, I doubt he will be able to do everything he’s promised. In fact, I know he won’t. Not in this economy. And it’s the same with McCain. Neither one of these candidates will be able to do what they promise.
But here’s the truth. What these candidates plan on doing after they are elected will have a major effect on the economy. After all, these guys would take office in the middle of a recession, war, and credit crisis. They’re taking control just in time to see the budget deficit eclipse one trillion. Social Security is about to cause a huge hole in the budget, and Medicare is in even worse shape.
For that reason, the next ten years are going to be painful. There are a lot of adjustments America needs to make. And just like a politician would, they’ve waited until the crisis is upon us before doing anything to fix it.
That just makes the problems more expensive to fix.
And so with elections coming up, I ask you to think long and hard about all the candidates. Look at where they stand. Look at how they plan to get us into fiscal solvency. And choose the candidate you feel is most likely to get us to a better America.
I personally have issues with both candidates. It’s my belief that America needs to cut back on spending in a very drastic way. Neither one of these candidates is going to do that.
Now that I’ve gone on my once-monthly political tirade, it’s time to answer some feedback…
I wonder about the following for YOU…in one of your previous writings you wrote that you went to help your father with a holiday home foreclosure (Costa Rica I think it was), and ended your writing with the phrase…
CHEAP IS IN…
Now in IDE Unplugged dated 9 Oct 2008 from your writing I guess you expect further price downfalls due to the deteriorating economy and lower Q3 earnings results.
So one way or the other if the market falls significantly further, say Dow at 6,000 or 4,000 points in the months ahead, then you can claim, I told you folks P/E with E down then P also down..!!! And, if the market pops back up, then you would say…I told you cheap was in!!! And if you are that clever, why have you not helped your father by warning him the risks involved in taking a mortgage in the first place?
-Paris K
You’ve thrown a lot of accusations at me, Paris. So let me answer them one at a time. First, I’d like to address the “if I’m so clever, why didn’t I warn my father” part of your feedback.
Why would you try and make me feel guilty for what is happening to my father? It’s just rude. My father is his own man. He’s going to do what he wants, regardless of what I think. Most fathers are like that. So you can’t blame me for the choices he makes. I would never blame you for choices your father makes.
Did I warn my father about the housing market? I sure did. Did he listen? Like most Americans, he didn’t think I was right. That was his choice. Now he’s dealing with the repercussions of it.
Now onto what you said about “cheap is in”. Yes, I certainly said that phrase and still believe it. But here’s where your logic is flawed: Just because cheap is in doesn’t mean the entire stock market will move higher. There aren’t enough companies that cater to budget conscience consumers to push the entire market higher.
What I was trying to do was point our readers to particular sectors where they’d have better luck.
Lastly, onto the P/E mention. Is there any doubt that earnings are coming in lower than expected? And with negative GDP growth projected for at least the next two quarters, we’re bound to continue seeing lower earnings growth. Considering bull markets are built on earnings, I don’t see how this market could recover when corporations continue to earn less money.
Does that mean companies that cater to budget conscience consumers will suffer? Not nearly as much as other companies in the market. For the most part, these companies should thrive and give you a nice little pocket of gains in a down market.
And before I go, I leave you with some great news we recently received from Terry…
I have taken IDE’s concerns from over two years ago and secured all of my savings into five year 7.5% CDs. I have watched several of my friends and associates lose thousands of dollars in the markets, including individual retirement plans.
I’m so glad you listened and were able to secure your funds before the market crash, Terry. You’re taking your destiny into your own hands and doing exactly what you need to do to secure a better future for yourself and your family.
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