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The Great Recovery

The bull market on Wall Street is a collective confidence based on company mean/lean layoffs. Regardless, the Dow is an important perception, so those who say perception is reality should be comforted.

Signs of unemployment point to upwards of 17% as the real number. That’s a liquidity killer impacting spending and recovery more daily, and every municipal, state, and federal tax base.

30% drop in giving at our Dallas area, 150 family church (how about your favorite charity) and 3 more major family earners lost their jobs last week in that same pool.

Quote from an employee of a major Dallas commercial real estate company, “We’re giving the keys to the multi-story building back to the bank on Monday. It’s just the beginning. And what you saw in home foreclosures last year you will see in commercial buildings this year.”

Though ponzi schemes are being exposed, we haven't ferreted out all the ponzi schemes yet.  My friend lost $5M, all he had, in a $80M total bust. Insider trading ain’t going away but investors in for the long haul weather the turbulence better.

We need to stop bailing out the weak companies who probably should have died a natural death. New regulations need to be created to prevent any one entity to hold too much capital, so the risk of failure is mitigated by a lessened impact, and thereby the country is held hostage by the failure.

We should not have implemented cocaine-like fiascos like Cash for Clunkers, which could be argued, was a wash, and is more harmful than helpful to the carbon footprint.

FDIC anticipates bailing out more banks in the next 12 months than last 12 months. When will we tighten up the regulation? If other industries determine a need to create FDIC-like insurance funds for other industries, like the auto industry, and let them fund their own failures as banks insure against their own through the FDIC.

Mad-consumer-spending our way out of this mess is the opposite of what we need. Strategic savings and capital investment is the way out. For the consumer, that’s equivalent to buying solar panels, not fur coat frivolities. For business that is the upgrade on equipment, if cash flow permits.

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