May 2012 Recession May Be Here

   I mentioned a while back that we will probably have another contraction/recession. Many , like myself, believe it is here. Currently we are in the downtrend. Note the Dow Jones Industrials and S&P over the last ten ays. It isn't looking good. Other indicators are showing recession. The trouble with recession is that it isn't acknowledged for some time after the money people know it for certain...maybe 6-9 months.  That gives the big money people...banks and hedge fund guys...a chance to get OUT slowly...without showing their hand and bringing the prices of stock crashing down. It comes down slowly and the media people who are supposed to know just fumble and scratch their heads. Meanwhile we have lost 30 or 40 % of our 401 K's that we have invested in stock funds.
   The state has a "Stable" fund that has been giving around 4%. It's guaranteed. THAT is where mine is. At least what is left of it after the 2007 drop. DON't think you are going to make money in stocks right now. Nobody is. You won't either. Greedy equals Stupid. Be smart. Protect yourself.

Putin Who? and the US Debt

   I just want to go record about a few things.
   Judging from President Obama's "private" comment to Putin about how he would have more flexibility after the election...concerning nuclear weapons treaties and agreements... Obama wants to engage Mr. Putin concerning certain things like anti-ballistic missile systems and such. That is, he will be more able to give away some of our strength for something. Liberals call Conseratives "mean", and Conservatives call Liberals "stupid". This is a good example of how our president is a liberal. I am comfortable knowing that we have some sort of capability of shooting down an incoming ballistic missile...even if it IS headed for Washington...mixed emotions about that one...but yes...comfortable. I am also comfortable knowing that we have our missile submarines off cruising and hidden...able to make a country disappear should they try to do the same thing to us. That, ladies and gentlemen, is a good thing which makes us safer. We need to keep those things.
   I am not comfortable with our government's debt of 1.2 trillion dollars for this year. That's about three times what George Bush's record was. I don't think most people understand the problem with this. Well, read all about it. It is happening in Greece right now. Smaller scale...it is a perfect example of what happens when China and the rest of those governments who buy our bonds which, in turn, pays for our government and the entitlements, become unenamored with a country that is spending way too much more than it takes in. Can't pay salaries, social security checks stop...or are necessarily cut in amount...those sort of things. When China slows it'sbuying of our bonds where do you think the money will come from? We can't just print it.
   The House and Senate need to consider Bowles-Simpson that is a neat framework for fixing some of the biggest problems we have.
   The democrats want to raise taxes on the wealthy. It is too little, too late...a non-starter. Republicans won't let that happen. So, while we are debating this mouse of an issue, the horses have left the barn.
   1.2 trillion dollars this year. Next year the expensive parts of Obama's health care thing start kicking in.
   Part of Bowles-Simpson is the idea that our government needs to stop being a health care company and pay for vouchers that help seniors buy health insurance. It is the only way to fix the problem. Remember the $60 billion in Medicare fraud two years ago?  We make a truely lousy health care company.
   I'll get to the pharmacy mismanagement at another time. Meanwhile, read about  Bowles Simpson. at the following url. http://en.wikipedia.org/wiki/National_Commission_on_Fiscal_Responsibility_and_Reform