It seems that the smart money is going short this market. Probably the most destructive internal conflict since the Civil War is threatening the U.S. It’s finally become clear to me that this is all about the balance budged amendment. What’s the big deal? Go for it. We need that discussion. We wouldn’t have had the disastrous Bush and now Obama wars if we had to pay for it today. We wouldn’t have allowed pharmaceutical companies to charge us exorbitant fees on a government paid for prescription plan. At some point the market may move over to the Tea Party point of view but as they press their case, the more people hear about their views, their strength picks up. But first they would have to win over their own Party!
Why doesn’t Obama concede to a balanced budget amendedment? What’s the big deal? Once we voted that in we could continue the same old argument? I wouldn’t be surprised if he didn’t. It makes sense. It’s a discussion the country must have. But we first have to recognize it won’t make any difference. It’s all about the allocation of scarce resources balanced budget or not.
This fight will go on and as the saying goes the market doesn’t like uncertainty. At least it doesn’t look like it at this level yet. Go short
