A Lack of Confidence

Much of what is happening in the economy now is a function of the lack of confidence in the investing community and the American public at large. Throwing more money into the mix isn't going to do anything if confidence is not restored.

How do you restore confidence when your solution is to panic? That's what the proposed $825 billion rescue package is -- a panic response. MY response to more bailout funds is panic. I am fearful of what it will do to my children and grandchildren. They are the ones being asked to bail us out of the current economic situation. They are the ones who will pick up the bill.

The desire of the government seems to be to stimulate spending. Dollars flowing through the economy is important, however, my response will continue to be to pay off debt (of which I have little to start with) and to build savings. My kids will need something on which to survive. Since the greed-o-nomics of today is creating the problem, it falls on those of us who are able today, to set some aside for the survival of those who must face "the tomorrow" that is being created. I suspect there are others who think the same way. Result: pouring money into the economy through additional bailout funds will have little positive effect except to prop up failures.

The best way to restore confidence in the economy is not to send the message that the government wants more of your money; it is to send a message of fiscal responsibility. That is NOT what I'm hearing out of Washington -- past or present administration.

It Has Begun

It has begun.

First, we see the appointment of a darling of the HSUS (which by-the-way has NOTHING to do with your local animal shelters) to a key position.

Second, we see the CIA shackled so they can no longer do their job.

Third, we see Nancy Pelosi gloating over the exit of the now former President.

John Cornyn is the one bright spot that I see in Washington. He is becoming more-and-more vocal in his position of leadership of the opposition.

Wait-and-see Optimism

I suppose it would be appropriate to say that I'm in a political holding pattern right now. It seems that wait-and-see is the best approach to the new administration.

There are some encouraging signs coming out of the President-elect -- but there are also plenty of discouraging ones. The message really isn't clear yet. Will it be the Pelosi/Reid line or will it be something else? Will political pragmatism rule the day or will it be ideology that determines the direction? Will Conservatives have any say in the next couple of years or will it be a left-wing steamroller? Today, the jury is out.

Why do I think the jury is still out? It is because I am an optimist at heart. I am optimistic that there remains enough balance in our country that we won't be captured by the socialist wannabes and instead will walk a somewhat centrist path.

In the interest of setting the stage for a second term, the President elect may choose such a path. At this date it remains to be seen.

A Snapshot of the Economy in a Bright Spot

Yesterday I spent the day in the Nashville, TN, and Bowling Green, KY, area. Their economy seems to be perking along nicely. I understand that there have been some layoffs and the Corvette plant in Bowling Green may reduce production for a period, but all-in-all, it seems to be hopping.

Jobless numbers being reported are ugly. It continues to signal some fundamental restructuring within our economy. Our carmakers are inefficient -- due in part to regulation and in part to Union imposed overhead. That's where a lot of the jobless claim numbers are being generated.

I think we may be "surprised" to see the media coverage of the economy turn much more positive after the Inauguration of the new President. They must exercise their power and annoint The One. After all, they believe they made him what he is. I can't argue that point.