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2011 - What's Coming
- Andrew Cuomo
- Apple
- Bad Bank
- Becky Quick
- Ben Bernanke
- Boeing
- Bond
- Brazil
- China
- Copper
- Dreamliner
- El Nino
- European Central Bank
- Foreclosures
- Fox Business
- France
- Germany
- International Monetary Fund
- Iran
- Iraq
- Italy
- Krugman
- La Nina
- Market Share
- Mexico
- NBC
- New York Times
- ratings
- Real estate
- Reality
- recovery
- Tim Geithner
- Unemployment
- United Kingdom
- Volatility
- Wall Street Journal
- Yen
- Yuan
Oh boy is 2011 going to be an exciting year! Some things that I think might happen:
-Volatility is going up across the board. If you have the stomach for
the swings that are coming across all markets there is a ton of money to
be made; balls and timing are all that are necessary. The markets will
create dozens of opportunities to make and lose.
-There will be 50 days with a swing in the S&P greater than 1%.
There will be 10 days where gold swings $50. There will be two days with
a drop greater than 100 bucks. Most of the big moves will be down
moves. Bonds will not be spared the volatility.
-Gold will be higher a year from now but off its peak. At some time in
the fall, gold will be near 1,800 and the New York Times will do a
front-page story that gold is on its way to 2,000. That will be the high
point of the year.
-Copper will continue to rise. This metal will benefit as the poor man’s
gold. Why buy an ounce of something for $1,600 when you can have a
whole pound of something else for only $5? The logic is compelling only
because there is no logic. Increasingly, it will become understood that
money does not hold value. Copper will do a better job of storing value
then a Treasury Bond.
-The US bond market is in for a heck of a year. The 30-year will trade
at BOTH 3% and 5%. Higher rates will come early in the year, then the
deflation trade will come back into vogue.
-Spain will be the next sovereign debtor that falls prey to the market.
This will happen before the end of the 1st Q. The package to bail them
out will exceed $500b. This will exhaust the EU resources. There will be
very high expectations that contagion will then move to Italy. That
will not happen in 2011 (2012?) The European Central Bank will step up
to the table (finally) and support the market for Italy. Sometime
between March and June Italian bonds will be a great buy.
-The IMF will contribute $125b to the Spanish bailout. The US portion of
this will be $25b. Republican Senators and Congressman go nuts. The
American people will side with them. The argument, "How can we help Spain but not California?" will
be the mantra. In the end the IMF commitment will stand. But that will
be the last time the US contributes to a sovereign bailout. This will
prove to be very destabilizing at some point after 2011.
-The ECB will be forced to issue bonds that are joint and several debt
of the EU members. This development will stabilize the EU temporarily,
but it will be hated in Germany. The amount of the new issuance of these
bonds will be small. The program will be terminated in 2012.
-The dollar versus the Euro will be all over the lot. The low for EURUSD
will be ~1.17. The really big surprise is that toward the end of the
year the Euro will be pushing 1.50.
-The CHF will be like copper. It will attract investors as there is no
good alternative. Before June EURCHF will trade below 90.
-The market will finally wake up to the fact that the YEN is not a good store of wealth. The continuing argument will be, “Yeah the Yen stinks, but everything is worse so it should be okay”.
Wrong. The Yen is a short. The best currency trade of the year will be
long Sterling short Yen. There will be better levels to put this trade
on then exist today; be patient.
-The US will have a full year deficit of 1.4 trillion dollars. This
depressing reality will hang on the US economy/markets. Congress will
talk about the problem endlessly, but little will be accomplished. By
the end of the year the problem will be so acute that belt tightening is
put in place for 2013-15. But it will be too late by then.
-QE2 will be the last QE we see. The program will end (on schedule) on
6/30. Perversely, long-term interest rates will rise as long as QE
continues. When the program is finished rates will begin a rapid
decline. This will not go unnoticed by academia. The result will be that
QE will be a disgraced policy that will not be used again for at least
five years.
-The high for the S&P will occur before June. The S&P will fall short of 1,500. The low will be 1,100.
-Oil will rise to $130 in the next six months. It will be above $100 at the end of the year.
-China’s inflation rate will continue to rise. Food will be the primary
driver. The central government will respond with monetary tightening and
an acceleration of the Yuan appreciation. It will not work. Inflation
will push 7%. The domestic economy will continue to grow but at a much
smaller pace. 5% GPD will be all that China sees for the year. The trade
surplus will fall by a third.
-Brazil will continue to shine as a resource rich country that runs a
trade surplus and has low budget deficits. The surprise of the year will
be Argentina. Food will be the reason. Argentina’s fortunes will
improve with rising wheat and soy prices.
-The US will wind down its presence in Iraq. With every step we take out
the door domestic violence will rise. Iran will assume a larger roll in
the south (Basra). This will not go over well with the US. Much of the
year will be spent debating what should be done. US warships will be off
the Iranian coast waiting for a phone call, but no shots will be fired.
Russia and Germany will not go along with strong sanctions against
Iran. The problem will fester toward a resolution in 2012.
-Kim Jong-Il will die. His son will take over. The heir is a
nut, there will be more military exercises that results in shells
landing on S. Korea soil. China will make public statements that it is
trying to bring order; behind the scenes they will be applauding the
chaos.
-Obama’s popularity will continue to fall. The legislative “successes”
at the end of 2010 will convert to a series of failures. There will be
no new stimulus. Portions of the health care legislation will be dialed
back. The mandatory participation feature will be found
unconstitutional. Without this feature the legislation makes no economic
sense and a great debate will be initiated as to what to do about it.
Nothing will be accomplished. Reason? There are no “answers” to this
problem.
-Obama will propose a means test for Social Security in his State of the
Union Address. Retirees who are living the high-life (Warren Buffet
types) are going to have their SS checks cut to the bone. Any senior
with income of $200k will be impacted. The great socialization of Social
Security will have begun. The popularity of this program will fall of a
cliff.
-The 2% reduction on worker contributions to Social Security will be
extended and expanded to 3% for 2012. Rates will not go up in future
years. Social Security will have to be gutted as a result. This will not
happen in 2011. But the seeds will be sown for this to occur in 2014.
-2011 will be a stock pickers market. Index investing will see a bad
year. Some of the darlings of 2011 like AAPL and NFLX will not fare so
well. While I don’t see big declines in these stocks there are much
better places to put money to work. M&A will be a dominant theme.
That is where the action will be.
-There will be at least three more 'Flash Crashes'. The SEC will launch
another investigation into how this could happen. The conclusion will be
that ETF's and how dealers manage them are responsible for the
liquidity problems in individual stock names. There is no solution to
this problem. The market will be on edge looking for the next mini
crash. A stock will fall prey to this and drop 20% in seconds. Unlike
prior examples there will be no recovery in the stock. Holders will
protest the losses. There will no restitution. Market confidence will
fall as a result.
-Meredith Whitney will be proven wrong in her forecast that 50-100 munis
go chapter 9 this year. The process to insolvency takes much longer
than she has anticipated. Only 11 munis will make a chapter filing. The
rest will be pushed to the brink in 2012.
-The center of attention will move away from California as the most
bankrupt state. In his State of the State address in January, New York’s
new Governor Andrew Cuomo will fess up to the fact that for the past
year of so NY has been burying its problems. Substantial cutbacks in
spending will be the result. NY State long -term GOs will trade at 6% at
some point in the year.
-Unemployment will not go down. The average for the year will be above
10%. The number of workers who leave the system will rise to 20mm. These
workers will find part-time jobs that pay cash. The new day-workers
will compete will illegals for employment. Social tensions will be the
result.
-The Chevy volt will not sell well. Boeing will be unable to complete a
single Dreamliner. GM will trade below $30, Boeing will hit the low
$50’s.
-The Singapore dollar will be the strongest currency on the globe in 2011.
-Apple will not come up with a new product this coming year. The rest of
the consumer tech manufacturers will gain some market share. The
problems with dropped calls with the iphone will be an issue. Apple will
respond with alliances with a number of other providers. ATT's stock
will suffer as a result.
-Headline inflation will rise a bit. It will push through 2%. Those
numbers are meaningless. The price of a pair of jeans will be 50%
higher. Food will cost us 15% more. Gas will be at $4. Bernanke’s QE
will be blamed for the inflation.
-Much to my chagrin and surprise Tim Geithner will not be replaced as
Treasury Secretary. He will continue to do a very mediocre job for us.
He will be replaced in January of 2012.
-Comcast will complete the acquisition of NBC/CNBC. One of the first
acts will be to fire Mark Haines. Nothing will help. The ratings will
continue to fall. Becky Quick will move to FOX Business. Diana Olick
will get her own show. She is being groomed to be the next Suzie Orman.
Simon Hobbs will return to London.
-There will be violent weather episodes all over the globe. The La Nina
condition that is now dominating global weather is the strongest in 50
years. This will make a dramatic shift to El Nino conditions this
summer. This will set the stage for a very big Atlantic hurricane year.
There will 12 named storms. Two cat. 4 storms will hit the mainland.
-Fannie and Freddie will be merged. Out of the ashes will come a good
bank and a bad bank. The bad bank will hold 2.5 trillion of questionable
mortgages. The US will end the year exactly where it started on this
critical issue. The federal government will be responsible for more than
95% of all new mortgages issued.
-Washington's other mortgage lender FHA will run into troubles. Their
minimum reserve level set by congress will be breached. A bailout will
be required. The true cost is buried. The bailout will be less than
$20b. As this is a problem for the Senate, the legislation will passed
quickly.
-There will not be a failure of a government bond auction. But the
coverage for each issuance will grow smaller. China, Russia and Brazil
will reduce their holdings of US reserves. The mysterious "household"
sector will show a huge increase in Treasury holdings. This will be
confusing as it will not match up with other data. UK reserve holdings
will show a decline. These are actually holdings of China that were not
included in official reserves. This will bring uncertainty.
-Mortgage Gate will die as a headline story. In fact it will go the
other way during the year. Increasingly, the problems in real estate
will be focused on the fact that there has been too few foreclosures.
That too many people had been living in a home without paying a dime
becomes a cost that all have to bear. As a result there will be a much
higher level of foreclosures throughout the year. Contrary to
expectation, residential real estate for average priced homes will not
decline much further. However, prices for high-end homes will continue
to fall. Anything with a price tag of greater than $1mm will be worth
20% less by the end of the year.
-The narco violence in Mexico will expand to many more cities. Tourism
will be hurt as a result. Some of the violence will pass over our
border. Anti immigration attitudes will expand. Because the low-end
economy will remain in the dumpster the actual number of illegal aliens
will decline by more than 1mm. This will add to the RE woes in some US
areas. It will stress the countries that they originated from as $
remittances decline.
-Interest rates will be higher throughout the year for corporate bonds
and Munis. This will bring a reversal of the mania to buy dividend
stocks. Those who thought that this investment strategy would work for
them will be disappointed. The number of hucksters pushing the dividend
story will grow in number while the popularity of the strategy declines.
-Jon Hilsenrath will write an article for the Wall Street Journal that
is actually critical of the Fed. The unpopularity of the Fed will rise
to such a level that Jon will have no choice but to follow suit.
-The Fed will come under attack from all sides. They are truly in a
no-win situation. Unemployment will continue to rise while inflation
rises and the dollar declines. One side will shout that the Fed did too
little (Krugman), others they did too much (the rest of the world).
Everyone will hate the Fed as a result. Bernanke will not lose his job,
but his term as the boss at the Fed will be forever tainted.
-ZIRP will be with us for yet another year. Bernanke will not let go of
this loser policy. Inflationary expectations will respond at some point.
By the end of the year a Fed Funds rate increase will be seen as
imminent even though the economy will be soft.
-Social unrest will become visible in America in 2011. There will be
demonstrations in many major cities. Some will turn violent. Economics
will be at the heart of the anger. The frustration that was evident in
France in recent years will come to the US.
Have a great year!!
»
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Rage on - your politicians will side with the bondholders over the taxpayers every time. It has nothing to do with kissing off an American State to save a European one. It has everything to do with kissing off an American State to ensure that bondholders don't take a major haircut. The Obama Admin has not been looking for more IMF money so that they can bail out Cali.
I look for China to play the saviour of Europe card and find a way to employ more chinese overseas. All the CB's are working together to shear the sheep and maintain the farm.
I look for the same thing but for a different reason - China is effectively a giant hedge fund buying up "distressed debt".
They don't buy PIGS debt with the expectation that it will not default.
The expect default. What they will then demand is some kind of equity.
China will have a "seat on the board" of the new Eurozone - and for a few billion here or there, it will be the deal of the century.
+1.
It's not a Republican thing, it's not a Democrat thing, it's not an American thing, it's not a Chinese thing. It's an Elites thing.
Absolutely. Not a single person who doesn't live there would support backstopping any state, even *if*, say, California sends more tax receipts to the FedGov than it receives in return. There would be absolutely no support nationally for backing any non-US government.
There is presently national support. We are sending them money now, and have been for a while now too.
Prediction for 2011:
In dollar terms, gold will go to $1650 (credit: Jim Sinclair) or higher, perhaps as high as $1800, before selling off. However, it might make new highs (above $1700) by the end of the year.
Gold will beat stocks -- U.S. stocks, eurozone stocks, and emerging market stocks (global index).
Gold will beat Treasury bonds, muni bonds, corporate bonds, euro Sovereign bonds, junk bonds, MBS, ABS, and every other sort of bond in any currency.
Gold will beat copper, although copper will do well.
Gold will beat yen, sterling, CHF, and any other government paper nonsense.
Silver will outperform gold for a while, but not necessarily over the full year.
Grains might do better than gold. Natural gas and uranium also have potential.
Oil will also do well.
All of this "GBP is better than JPY" stuff is a waste of time.
....if China cuts its auto consumption and the housing market is dead in the water and utilities are not stringing new lines, why will copper go up?
Lets get real...speculation can only drive a commodity price for so long...in the end fundamental demand and supply will dictate copper's price, and the demand is not going to be there unless the primary markets for copper suddenly improve.
Copper wire is being replaced by FIOS. Invest in glass.
Hey, maybe that desert real estate I bought might pan out afterall!
Working off of the premise of his prediction: If there is a flight to PM's in the coming year, copper will begin to be looked at as another store (any port in a storm) of wealth. Not agreeing or disagreeing, but I find it plausible.
Confed:
Ron Paul will be shown how bad things really are and will be frightened off from doing anything significant.
He already knows things are terrible, but when he realizes things are much worse than he thought, he does some hearings and sends toothless requests, then finds something else to chew on.
(Yeah I know, junked in 3..2..1)
I hope you're wrong. Even if Ron Paul gets ground into tiny little bits, I want to believe that there is at least one honest and principled man in DC.
It reminds me though of something Glenn Beck said in 2007 during the elections though. Now, before you all hate on me, I'm not a Beck Kool-Aid drinker, but I will occasionally listen to his radio show in the car.
During the run up to the election Beck, Rush Limbaugh and a few of the other big name conservative talk show hosts were called in to meet with George W. Bush. There was a big blow up in the media about it because these guys had to promise that they wouldn't reveal any details of what was discussed in the meeting.
The one thing Beck did reveal though was that Bush said the election would have no bearing on anything that would happen in Iraq and Afghanistan. The cards were in play and the people in power were helpless to change any of it.
Even if it's a losing battle, I still want to see Ron Paul get up there and kick some Fed butt.
Ron Paul means what he says, but if he comes close to causing any real trouble, the GOP power structure will just remove him. Ultimately, he's not his own boss.
He'll hold a bunch of hearings that will raise eyebrows, but ultimately will not fit in with the media's paradigm, so they'll go nowhere. There will be articles like "Could Ron Paul be right?" that chew over the issue for ten pages, then the author will go back to covering whatever Boehner is peddling that day.
chet: sounds about right. but i doubt that anyone here actually knows what ron paul's motives and intentions are.
How could they be worse? Have you heard the man talk? He expects riots and the dollar to go to 0 and most Americans to be wiped out. What now? Will ending the Fed turn us all into redneck cannibals ala the Road?
It is one thing to talk, it is another thing to be the guy who is the catalyst and thus self fulfills prophecy.
BTW-Yes, they could be far worse. The real question is who here truly has the guts to survive?
Catalyst? The fire was lit a long time ago. If a person is riddled with leprosy and is losing fingers regularly are they going to blame a passerby who points out their affliction as the source of their prior affliction?
You misread what I wrote. Ron knows what can happen and what is likely to happen. There will be a collapse, he points that out himself.
And you wrongly assume Ron has any power. He is tilting at windmills. There will be a collapse, the collapse he points out and it would be done with or without him.
haha Like Ron Paul doesn't know exactly how bad things are.
I would tend to agree with you, but for a different reason.
I think the lobbyists will make sure he's Elizabeth-Warrened in his new role.
Since when? He's been chewing the Fed-bone for 20+ years. Increasing validation with every passing day.
The doozy would be an about face: Dr. Paul suddenly revealing an alliance with the elite. But I think he's the real deal, a true patriot. He's waking people up either way - every thing becomes so clear when he speaks.
WW,
Ron Paul will not back off the Fed at all.
He will be sold out like Caesar,and will be guilded.
Waking up the people does nothing, because they will sit on their ass.
Obama will be re-elected because he is so admired.He was ( I may puke), voted the most admired man in America for 2010.
The all powerful Gestapo Group GGI, will continue to make new and inane rules, and regs, to make lawbreakers of all.( esp caucasoids).
And if you have any funds left in FRN's in the states, your going to lose them(401k's/ IRA's).
Warren Buffet types to be means tested for SS?, 200k crowd?.
Dream on, anyone who can pay and has savings will lose a major portion fo their benefits.(and I do not mean millionaires).
Your SS will be stolen, and you will be re-paid with your lifes savings.
After all, responsible, and prudent people are going to pay the price.
The IRS will become likely the Big Brother of 2011, and ALL financial transactions will be under microscopes, 24-7-365.
Uh, that's gelded, not "guilded". Unless he's going to join a guild.
He will be sold out like Caesar,and will be guilded
Uh...just to clarify, you mean 'gelded'?
I agree with him being gelded. His impact on what ever he wants to do will be swept under the rug. It's just not in the 'best' interests of 'anybody' involved. BTW we are part of the 'uninvolved'.
Very interesting.
Further revealing its repressive nature and true allegiance - a pack of unwitting traitors. Ignorance is no defence, however, as the IRS itself has demonstrated. The People will continue to bleed as long as they remain apathetic to their neighbors' persecution. Undesireable death and misery either way - might as well get it over with.
We can only hope Barry is reelected in 2012. I'd prefer them not to change horses again. Barry is mostly used up as is, we don't want a new horse in there to pass through even more insane agendas. Of course I would prefer Ron Paul, but he would befall an "accident" Even if he was able to overcome voter fraud, and that assumes the masses wake up which is unlikely.
Instead of Hope and Change it will be Security and Reform if America lasts that long.
Good to read, it was informative. Thanks
Krasting is DA MAN! Not just one or two weenie predictions but a score and more! What if most of them are wrong? Who cares! It's the audacity!
Always enjoy your work but this made me laugh...
-QE2 will be the last QE we see. The program will end (on schedule) on 6/30. Perversely, long-term interest rates will rise as long as QE continues. When the program is finished rates will begin a rapid decline. This will not go unnoticed by academia. The result will be that QE will be a disgraced policy that will not be used again for at least five years.
"Acadamia" never believes their ideas are wrong, they just believe they haven't been allowed to do enough of whatever idiocy they were engaged in. We will get to QE47 and they'll still be saying if we just do $50 trillion more that should solve the problem...
Exactly, KISS.
Academia will cherry-pick effects of QEx they like and ignore/deny the others. We will see QE3 (extension of QE2) and maybe QE4 (Munis) in 2011.
Do I get this right, Bruce: You're saying EUR/CHF will go below 0.90???
That's another totally wrong prediction. The Swiss economy would completely implode long before! As a last resort the Swiss will either introduce capital controls or the SNB will start printing money as well.
Existing and future entitlements will bankrupt the government without endless QE.
...spot on....the Feds have an addict on their hands....no one could bear to watch the "whips and jangles" of our "free market" if its juice was cut off....
I agree. I think unless they extend and ramp up the BAB program via new legislation, QE3 will be about purchasing muni debt.
Bruce--I agree wth the civil unrest part. There has been a lot of chatter on some of the boards I look at, talking about how one group is to blame over another. The reasoning is so incredibly stupid, it makes me shake my head. Watch for "classes" of people, such as bankers and lawyers to become scapegoats and targets.
I would add:
1. Escalation of "class" warfare.
2. Increased incidents of vigilantism and self-help.
3. Increased crime (particularly theft and shoplifting).
4. Increased jingoism.
On the other hand we will also likely see:
1. Increased dumpster diving and "recycling"
2. A decrease in what I call the "plastic pails and useless crap" culture.
3. Community and local support grows as municipal and state programs are cut back. Communities will increasingly police themselves since they have no choice.
4. Increased but isolated acts of "town justice".
The fact that you didn't mention Ron Paul and his looming battle with the Fed, or his looming fight over the extensions to the debt ceiling, speaks to your liberal bias.
the fact that you didn't mention ron's
traitorous israel firster offspring speaks as well.
shucks it's only cost us $3 trillion so far.
http://spectator.org/blog/2010/04/22/rand-paul-and-israel
http://www.rense.com/general41/trill.htm
any guy that raises a corrupt shill like that shouldn't
be in charge of squat.
did ron send you a refund for the pres campaign donation?
thought so,i wonder where all that money is today.
controlled opposition gets the front page, real opposition gets a bullet. ron will end the fed about 30 seconds after
theyve looted the last dime.
Your trolling has failed.
Speaking truth is hardly trolling.
Ron Paul is ConOp and nothing more than entertainment for ConOp Tea Partiers. He can bark at Bernake all he wants - it's not gonna change a damn thing. In fact, Ron Paul has been in Congress forever - and hasn't changed a damn thing.
People should get over Ron Paul and American Politics in general. It's just a dog and pony puppet show meant to distract while the Banksters continue their rape, pillage and scorched earth policies against the American People. Professional criminals use this ruse all the time. The Banksters and our Politicians have merely perfected it.
I hold suspect anyone who still believes in Red/Blue, Right/Left, Liberal/Conservative paradigms and holds any of the filthy, treasonous bastards in .gov and Wall Street in any regard... they deserve none.
Get a life.
I tend to agree, I see no difference between the political parties except the tone of the rhetoric and who is pointing what finger at who while the whole charade of a political system that is totally off the rails with no real solutions anywhere in sight. No functioning justice system that, if it does anything at all, just picks at a few scabs around the edges of the vampire squids.
Ron Paul sounds pretty good regarding the gold standard but technically, it seems like we already have the epitome of a libertarian economy... corporations are running wild with only government intervention to keep them from collapsing except Ron doesn't want to keep them from collapsing. I don't think we need anymore laissez faire policies
This is the dumbest thing I have heard. Our economy is so far away from Laissez faire that its a wonder any business gets done at all in this country.
Look at any small business. First thing they have to deal with is the building code, then local tax structure, then employment regulations. I can't even begin to think about all o the governmental requirements that need to be satisfied just to set up a small business.
Then lets say you invent a better mousetrap and are successful. Then Bill Gates, Steve Jobs, Citigroup, GM, etc. will lobby their government pals to make it illegal or say that it needs some type of government oversight. This is just another way to add cost to the competitor to try and drive them out of business.
I can't even begin to name the ways government interferres with business. The most obvious is the tax system. IRS anyone. Pay or go to prison.
True dat. I've owned several businesses since 1976 and I'd never start another one. More time was spent shuffling government paper in all its manifestations than doing something productive. This current environment has given American Business the very motivation it has needed to reduce work force -- and NOT re-hire. Having employees can be a delight if they are productive; but the mechanisms for ridding a business of the flakes has gotten onerous. If you work for the State or Federal Government you have to kill somebody in plain view in the parking lot, or be dead at your desk for over a week to be removed from the payroll.
LOL! Funny shit at the end...
+2 (and that's a really big number for me)
A major shift occurred in the last decade where employees moved from being an *asset* to becoming a *liability* for the Company. Quite literally, employers fundamentally changed their structure and re-vamped HR to *protect* the company from the *liability* that is the employee.
Amazingly, this is even true (and especially true) in those industries that are fundamentally based on "intellectual property", like what *was* HP, AT&T, and IBM.
This trend is *not* changing. We will see increased use of contractors and consultants -- in every industry in the United States. It doesn't pay to have employees. In part, this structural social transition is why it is silly and ridiculous to talk about "economic recovery" in 2011. (After a transition, it is possible to have higher productivity and greater economic activity, but society has not yet done the "heavy lifting" required for this transition; most specifically, government is actively prohibiting progress in this area.)
You've got to be *insane* starting a business these days (although I concede niche opportunities exist, and will always exist).
Relating back to the original thread assertion, no, this is *not* "Laissez faire": Large corporations use government regulations, laws, tax policies, and subsidies to wage war upon small companies and potential startups. The most technically correct definition is "fascism". (The honest reader should move past the derogatory connotations for that term and simply consult the dictionary.)
We have a libertarian economy??!!!! I don't see how we could possibly have more government interference without outright fascism. The major corporations have only grown to the size they have BECAUSE they have captured and wield government power.
You stated it yourself. These corporations have only NOT failed because they have captured government and are using that to prop themselves up. That is not liberty, free market capitalism or any such thing. That is a bastardized form of fascism.
Do you really think the current system is laisse faire? Have you seen the epic size of federal rules and regulations? I bet you couldn't read them all if you spent 8 hours a day at it all next year.
What we are dealing with is corporatism, the merger of state and corporate power. Libertarians are against the use of state power to support these corporations. You are trying to equate fascism with free market capitalism. You are basically saying white = black, up = down. Do you think Mussalini was a free market capitalist?
The current system the big corporate players use their puppet gov to attack the smaller competitors to consolidate power. This is not a free market. Look at the SEC, see them going after big players, or after the smaller competitors to the big players?
I distrust anybody who can just bitch and moan but never go out on a limb and stand up for anything. Why don't you just crawl back under the rock you came out from under?
Ergo, you detest yourself?
Every man of principle is entertaining.
Ron Paul is a man of principle.
Therefore, Ron Paul is entertaining.
His tenure in Congress may be disheartening to you, but I admire his patient continuance in well-doing.