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Guest Post: Election Year 2012: Two Landslides in the Making?

Tyler Durden's picture




 

Submitted by Charles Hugh Smith from Of Two Minds

Election Year 2012: Two Landslides in the Making?

If the economy continues declining into late October, there may be two landslides in the making: the stock market and the presidential election.

The stock market is precariously close to slipping into a landslide. If the economy and stock market both continue declining into late October, the presidential election could also turn into a landslide--against the incumbent.

There is nothing particularly partisan about this possibility; people who vote tend to vote their pocketbooks, and a re-election campaign that boils down to "hey, it's not as bad as The Great Depression" is unlikely to inspire great loyalty in voters who are already culturally predisposed to tire quickly of presidents, wars and a tanking economy.

If the economy and stock markets are both slip-sliding away, the opponent need only be "not the incumbent" to win.

Presidents facing re-election in deteriorating economic conditions find their support in the critical non-partisan middle is a mile wide and an inch deep. A recessionary economy acts like a drought on that shallow lake of support, and when it dries up then the incumbent loses, and often loses big.

Let's consider the critical backdrops of the economy and stock market: household income and corporate profits. Market bulls like to tout rising profits as the reason the market can keep climbing higher in a global recession, but before we get too euphoric let's recall that the earnings of 90% of American households have been flat since 1970.

All those fabulous profits were built on two now-crumbling edifices: astounding levels of household debt and a declining U.S. dollar that boosted the critical overseas profits (40% of all profits) via currency devaluation. Now that the dollar has broken out of a multi-decade downtrend and has been rising for a year, those tailwinds have turned into headwinds.

I have yet to read even one market bull who has considered the negative impact of the strengthening dollar on overseas profits. That is a fatal flaw in their argument for ever-higher profits and stocks.

Can the top 5% push corporate profits into the stratosphere?

Do trees grow to the sky? Corporate profits have risen at geometric rates. Does a recessionary global economy and a debt-crushed, declining-income 90% of households support the bullish claim that profits can soar to the moon?

Here's a chart of the ECRI's Weekly Leading Index courtesy of dshort.com. I have marked it up to show the megaphone top pattern and the downtrend since 2007 of lower highs. This is unambiguously bearish. In effect, trillions of dollars in stimulus, bailouts, subsidies, giveaways and backstops have simply slowed the deterioration. Every time the economy threatened to sink into recession, another "save" was pulled out of the magic hat.

Once again the economy is on the edge of recession, only this time there are no more "saves" in the hat except QE3, and that can't be unleashed (and the sugar high won't last long) until 1) the market tanks and 2) the election is over.

When systems that have failed are not allowed to fail because of resistance by vested interests, the inevitable implosion is only delayed. Please consider this chart from Tony at Macro Story, who kindly shared this comparison chart of the S&P 500 (SPX) for 2011 and 2012. Tony counted a remarkably similar 16-point pattern in the two charts, and offered this commentary:

"First let me explain the basis for why the following may happen. The model analyzes market stress such as a selloff that was somehow averted. When such price action is averted, it is only done so temporarily. It does not eliminate the stress. And the more such events happen the greater the stress built into the system. For example, if you study the flash crash of 2010 or the July 2011 selloff, prior to that a number of opportunities for markets to correct were averted. For whatever reasons, the downside price action needed to “cleanse the system” was not allowed. The end result is the stress became too great and the downside movement was very explosive. (emphasis added by CHS)

 

The best example I can share with you is the detailed analog of the current market and that of 2011 over roughly the same time period. As a reminder there is more than just candlestick patterns but rather levels where price hits within the model. Those are levels used to identify such stress as referenced above."

Thank you, Tony. If the stresses that have been countered since December 2008 with endless rounds of interventions, threats/promises of QE, etc. can no longer be constrained, then the bottom could be much lower than most technicians and pundits expect.

Some analysts have been claiming that presidential election years are strongly bullish. Longtime correspondent B.C. separated election years in secular Bull markets from those in secular Bear markets, and reached a considerably more Bearish conclusion.

Bullish analysts consider 1,180 SPX a remote possibility. SPX 880 is not on their radar. Since nobody knows what will happen tomorrow, much less in October, all this is merely "food for thought." But confident Bulls might want to look ahead a year and study B.C.'s chart for the first year in a presidentail cycle.

Once again, if we separate secular Bull and Bear markets, the oft-touted Bullish trends for the election year and first year of the presidential cycle vanish.

If stocks start cascading in a landslide the enfeebled, failed Fed cannot stop, the sitting president may face a landslide as well.

 

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Mon, 07/09/2012 - 22:10 | 2600863 fonzannoon
fonzannoon's picture

As long as rates stay low and go towards negative territory, fundamentals, earnings etc. will mean nothing. People will continue to latch on to anything with a dividend and drive the price higher. These overvalued dividend paying stocks are forming a massive bubble. It seems treasuries are the trigger that will pop bubbles everywhere. Real estate, dividend equities etc. etc. they will alll blow sky high the second rates move up. The only question is how high does the debt have to go before it detonates. 20 trillion? 30?

Mon, 07/09/2012 - 23:44 | 2601085 AlaricBalth
AlaricBalth's picture

The only thing the Corporate Profits after Tax chart tells me is that the Fed has been devaluing the dollar for decades. Not a very clear picture of corporate profits when it is unadjusted.

A chart of Corporate Profits as a Percent of GDP gives a clearer picture.
http://graphics8.nytimes.com/images/2010/11/23/business/economy/economix...

Mon, 07/09/2012 - 22:10 | 2600865 Michael
Michael's picture

If the economy and stock market both continue declining into late October, the presidential election could also turn into a landslide--against the incumbent

If the economy and stock market both continue declining into late October, the Congressional elections could also turn into a landslide--against the incumbents. There, fixed it for ya.

I'm still voting for Obama so Romney and the GOP/MSM gets fucked up ths ass.

Mon, 07/09/2012 - 22:29 | 2600910 I think I need ...
I think I need to buy a gun's picture

i don't think the republicans want any part of the next 4 years, hence romney,,,,,it's really a one party system in disguise, the republicans steal all the money and the dems clean up the mess EVERY TIME the last 100 years,,,,They are all the same fuckin thing that turn the 99% on trivial issues against each other so they can steal the money, this cycle so happens to be that once every 100 year one where they went to far and took fuckin everything.

Mon, 07/09/2012 - 23:07 | 2601004 Rasna
Rasna's picture

This, indeed, will be interesting.  If Mittens wins Bernank KNOWS that he will be out of a job.  The Glove has said so,,, So, it's in his best interests to help O get re-elected... Barring unforseen exogenous events occurring, we have seen the power of the Fed to manipulate markets.  So can we expect to see low volume melt-ups and phantom rallies from nowhere over the next 4 months?

Personally, there's little difference between O and Mittens.  As I've said before, No one, and I mean absolutely no one gets within sniffing distance of the White House without the blessing of the financial elite.  The Presidency is bought and paid for.

I think that we could see a continued correction to SP 1235-1250, Hell maybe even 1220 over the next few weeks, but I expect that that's it and the ramp will begin.

After the election, well that's another matter.  I had my ass handed to me on more than one occassion trying to trade against the FED using logic.  I don't make that mistake any more.

Mon, 07/09/2012 - 23:25 | 2601046 andrewp111
andrewp111's picture

NSJ. Bernanke wants to stay in power, and he needs to reelect Obama to do that.  Obama has the powers of office, and he will use them to the max. I predict he will (1) have a NATO war in Syria as a distraction, (2) Announce with Bernanke a massive ultimate bailout of underwater mortgage debtors. possibly using Eminent Domain for the Fed to take the mortgages, and (3) his partisan hack Eric Holder will indict Romney for tax evasion within a week of the election.

Tue, 07/10/2012 - 00:56 | 2601177 Missiondweller
Missiondweller's picture

Are you sure Bernanke wants to stay "in power"?

 

The guy seems miserable and has essentially admitted that what should have happened "according to textbooks" hasn't happened. Bernanke just doesn't know what to do and even if he did, he doesn't have the balls that Volker did.

Tue, 07/10/2012 - 01:06 | 2601188 AldousHuxley
AldousHuxley's picture

bernanke just cleaning up mess that greenspan made.

 

romney isn't going to kick bernanke out. he is going to reappoint bernanke and tell him to print even more to save private equity industry from revealing itself as just bet on fed easing.

Tue, 07/10/2012 - 09:24 | 2601723 Race Car Driver
Race Car Driver's picture

This is all a lot of mumbo-jumbo nonsense. Elections don't matter. The banksters appoint who they want amongst themselves - and that includes politicians and school boards.

Mon, 07/09/2012 - 22:13 | 2600867 HungrySeagull
HungrySeagull's picture

That large multi stage rocket will flame out once it burns through the dollar bills stuffed inside it's hull rather than the more expensive fuel.

Neither is going to be pretty; however we cannot afford 4 more years.

I would not be above writing Trump in for Prez comes time to cast a vote.

Mon, 07/09/2012 - 22:45 | 2600949 hungrydweller
hungrydweller's picture

Trump is just a poser; more of the same regardless of the crap that spews out of his mouth.  He says one thing but will not do what it takes to right the ship.  He, like most all current politicians will vote to inflate.  If you want to write in a real candidate, one who supports an economy backed by real money and real constitutional principles, write in Ron Paul.  I will be.

Mon, 07/09/2012 - 22:50 | 2600970 RiotActing
RiotActing's picture

You're an idiot if you think things will get better with Romney at the helm. It really doesnt matter who is there, the fucking wheels are coming off next term, by design.

Mon, 07/09/2012 - 23:14 | 2601028 Long-John-Silver
Long-John-Silver's picture

The wheels are already off. This beast is simply sliding forward on momentum.

Tue, 07/10/2012 - 02:43 | 2601262 laughing_swordfish
laughing_swordfish's picture

The wheels are already off. Unless we can return to CONSTITUTIONAL GOVERNMENT and the rule of law, we are f***ed - totally and absolutely.

At an "All Hands" meeting of DKM Trading, it was determined that our CORPORATE position on politics is this:

WRITE IN RON PAUL ... your pocketbook,liberty, and even life may depend upon it.

 

KrvtKpt, Laughing Swordfish

DKM Trading

 

 

Tue, 07/10/2012 - 07:13 | 2601431 eclectic syncretist
eclectic syncretist's picture

There are many angry posters here who will be even more angry next year if they fail to write in Ron Paul.

Tue, 07/10/2012 - 02:27 | 2601249 jeff montanye
jeff montanye's picture

yes.  donald trump seems a likely solution.

Tue, 07/10/2012 - 10:23 | 2601943 RockyRacoon
RockyRacoon's picture

Sure.  If you want a nukular war with China.  That would certainly help with the "useless eaters" problem.

Mon, 07/09/2012 - 22:21 | 2600889 billwilson
billwilson's picture

The worse the economy gets the better chance Obama has. The only ones who will be left voting for Romney will be the 1%. The 99% know that things would only be worse under Romney. Not that Obama has any answers, but everyone knows Romney has absolutely nothing for them (other than Bush retreads and stronger more rapacious banks)

Mon, 07/09/2012 - 22:47 | 2600963 RiotActing
RiotActing's picture

As soon as that dope Romney starts debating Obama. they problalby wont have to fix it this time.

Mon, 07/09/2012 - 23:26 | 2601047 bagehot99
bagehot99's picture

Who categorizes people based upon income other than moronic Marxists? The 1%??? The 99%???? You're living in a fucking cartoon, son.

Tue, 07/10/2012 - 02:28 | 2601250 jeff montanye
jeff montanye's picture

the rich do.

Tue, 07/10/2012 - 06:11 | 2601382 grey7beard
grey7beard's picture

>> Marxists?

Marxist, favorite word of the wingnut parrots.  You fucking dolts couldn't give one trait of a Marxist yet you had Obama labeled as one before he even set foot in the Oval office or put one policy in place.  Turn off the idiotic talk radio and exercise your brain cells.

Mon, 07/09/2012 - 22:34 | 2600921 zorba THE GREEK
zorba THE GREEK's picture

Is the election supposed to mean something? It doesn't matter who wins in November, they both serve the same master.

Mon, 07/09/2012 - 22:37 | 2600933 xtop23
xtop23's picture

Honestly, who cares? Your vote means nothing. You have a choice between steak with potatos or with the vegetable medley. 

The hijacking of our country, that is so apparent today, has been decades in the making.

Plan accordingly.

Tue, 07/10/2012 - 02:30 | 2601252 jeff montanye
jeff montanye's picture

i think someone else has already eaten the steak.

Mon, 07/09/2012 - 22:38 | 2600935 BigDuke6
BigDuke6's picture

Isreal will find a war or two for you before the election.

Make sure the isreali war machine supporting, biggest flag waving moron gets home to the white house.

Worked with Bush x2.

 

Mon, 07/09/2012 - 22:47 | 2600959 hungrydweller
hungrydweller's picture

"flag waving moron"

"flag waving mormon"

There, fixt it fer ya.

Tue, 07/10/2012 - 02:38 | 2601257 jeff montanye
jeff montanye's picture

yes you are right.  they are not morons but superficially smart but morally and practically bankrupt tools.  

i hope the flag waving mormon replaces the flag waving whatever, ostensibly christian, currently manning the drones (and torturing manning).  

the 99% may have an easier time rising against a more obvious rapacious crony capitalist warmonger than the cleverly (less so as time goes by) disguised one we have now.

Mon, 07/09/2012 - 22:46 | 2600956 RiotActing
RiotActing's picture

Landslide against the incumbent? Is this guy high? Shit is fixed and Obama is the banker bitch, he'll get relected one way or another. They will make sure of it.

Mon, 07/09/2012 - 22:48 | 2600964 hungrydweller
hungrydweller's picture

Whatch mean Obama is the banksta bitch.  Romney is a banksta.  Why have the bitch when you can have the pimp in charge.

Mon, 07/09/2012 - 22:54 | 2600978 RiotActing
RiotActing's picture

Romney is no pimp, he was born with a silver spoon up his ass. He's like Mark Cuban, a dip shit with a lot of money who thinks he's a genius. That Romney is fucking moron, they dont have time to explain things to him. Why change horses? Nah Obama is a lock...

Mon, 07/09/2012 - 22:55 | 2600980 RiotActing
RiotActing's picture

P.S. Romney is no "banksta", he wishes. Empty suit thats going to get crushed in the debates.

Mon, 07/09/2012 - 22:52 | 2600971 ozzzo
ozzzo's picture

I was going to vote for Obamney, but now I'm voting for Rombama instead!

Mon, 07/09/2012 - 22:54 | 2600976 fonzannoon
fonzannoon's picture

it was the right call ozzzo

Mon, 07/09/2012 - 23:04 | 2600987 q99x2
Tue, 07/10/2012 - 13:29 | 2602747 Crack-up Boom
Crack-up Boom's picture

As long as we're in dreamland, Nigel Farage for Prez!

Mon, 07/09/2012 - 23:11 | 2601018 Long-John-Silver
Long-John-Silver's picture

We are in an Economic Depression. The economy is in the process of taking a second downturn. All you need do is compare today's chart to the chart of the Great Depression. History is repeating with a vengeance.

This Great Depression Stock Chart opens in a new window.

 

The Stock Market will take another hit and it's going to be worse than 2008. It will happen on or before October of this year just in time for the November elections.

 

 

Mon, 07/09/2012 - 23:43 | 2601083 One World Mafia
One World Mafia's picture

Gary Johnson can help take away votes from The Mad Obomber.

Tue, 07/10/2012 - 02:42 | 2601260 jeff montanye
jeff montanye's picture

gary johnson is a bit like a younger ron paul.  i hope he stays active in politics.

Tue, 07/10/2012 - 07:34 | 2601478 j0nx
j0nx's picture

Johnson is nothing like Paul. WTF are you blabbering about?

Mon, 07/09/2012 - 23:51 | 2601096 pragmatic hobo
pragmatic hobo's picture

romney will be so much worse than o'bummer.

Tue, 07/10/2012 - 00:36 | 2601146 sitenine
sitenine's picture

Who gives a shit who the POTUS be?  Krugman maybe?  Soros?  Buffet perhaps?  Please.  Neither of these two presidential hopeful douche bags are worth much more than a banker.  What do we expect from either of them?  Still think things can be turned around just by electing a leader?  Someone honestly thinks that either of these clowns can be 'worse' than the other?  In what way?  Maybe one will bring it all down faster than the other - that's the only difference I see here.  To be honest with you, I would rather see it come down sooner than later anyway.  We wont go back to work to build our futures until we have a future to build.  The simple truth is, that our future does not lay along the same path as a failed system.

Tue, 07/10/2012 - 00:10 | 2601121 alien-IQ
alien-IQ's picture

We really need the option to vote for "None of the Above".

I honestly believe that, given that option, "None of the Above" would win by a landslide.

Tue, 07/10/2012 - 06:50 | 2601404 BeetleBailey
BeetleBailey's picture

100% Correct.

THIS is the best we can do? A choice between a scary Mormon and an even scarier Arab?

I shake my head.........

KILL ALL BANKERS! DEFAULT ON YOUR MORTGAGES. FAIL TO PAY CREDIT CARDS.

The Next War: BANKERS.....DEAD.

Tue, 07/10/2012 - 00:23 | 2601141 toady
toady's picture

I believe that is Romney and the 'R' plan, just make sure everything gets worse and just say no until everyone is so sick of this shit they would do ANYTHING, even vote for Romney.

It may just work!

Tue, 07/10/2012 - 00:38 | 2601155 sluggo
sluggo's picture

I have a question about the second exhibit/first table where the # of people in each income category are listed.  Why does the total equal only around 152MM people? I thought there were over 300MM peeps in the US?!?  Wouldn't the "bottom 90% include those who have "no" income (other than handouts)?

Tue, 07/10/2012 - 00:43 | 2601157 sitenine
sitenine's picture

Not all 300MM are wage/income earners (think specifically children, unemployed without benefits, and elderly without pensions)

Tue, 07/10/2012 - 01:36 | 2601214 Mark Noonan
Mark Noonan's picture

I think it will be a Romney landslide even if the economy kind of sputters along officially not in recession.  What a lot of people are missing is that, on the ground, there is a surge of grassroots, GOP support growing.  Not that this is in love with Romney - indeed, very far from it - but it is in love with the idea of taking out the Ruling Class (witness what happened to Lugar in Indiana) and it further understands that whatever gripes one may have with Romney, Obama simply must go because he's an utter disaster as President.

People are waking up to the fact that we aren't electing a savior - we've reached Journey's End when people will invest their hopes and dreams in a mere Presidential candidate.  Romney is a tool  - and a tool which will be discarded if he strays too far from the people.  Romney, though, appears smart enough to understand this - at least for his first term, we can expect him to actually do some useful work in reforming government, even at some pain to Ruling Class interests.  It is, in the end, the only way Romney can prevent a challenger in the 2016 primaries.

Ultimately, though, there must be a revolution - and that will take someone who is actually willing to go flat out against the current system.  Romney won't do it (he's not tempermentally like that - though he may surprise us if his back is to the wall and we're facing default) but using Romney to get rid of Obama and to put at least some rationality in to government policy can give us a breather and allow us to build from the ground a truly revolutionary movement to reform America.  We still have everything we need right here in this country to make it as great as it should be...all we need do is unleash it, and I think that the political will for such radical change is developing.  The final piece of the puzzle is to get a political party (which can end up being the GOP if things go a certain way, but may require a new party) which realizes that the two sides of the coin - Big Government and Big Corporation - both have to go for America to be free and prosperous. 

 

Tue, 07/10/2012 - 10:33 | 2601988 RockyRacoon
RockyRacoon's picture

I'll commend you for being rational.   One thing you may not really be considering is that the game is over.  The US is too far gone to save, under the current "system" that has developed.  That "system" is not the form of government we were founded under.   The economics have failed, as well as the politics.   The familiar concept of denial is one that we should all take a closer look at, and yes, that includes me.   Working under the same set of so-called rules will not get us back to stable.  I'm afraid that it will all have to come down first.  That is something with which the founders were familiar, and not at all averse to.

Tue, 07/10/2012 - 13:01 | 2602622 Mark Noonan
Mark Noonan's picture

And, thus, the need for revolution.  But I think that what the Founders gave us still works at least to this extent:  we, the people, can overthrow the current system via the electoral process.  No assurance that we will, of course, but that we can. That is may ultimately require the shedding of the blood of patriots and tyrants is something that cannot be excluded but I believe there is just enough will on the side of restoring the old, constitutional order that we'll avoid anything like that.

Of course, just restoring it won't be enough: what was subverted before can be subverted again.  We have to learn the lessons and apply them.  However the revolution comes about the end result must be a much more clear re-writing of the restrictions on government power as well as a more definitive statement of the rights of the people.  Naturally, a corrupt political class will set about trying to subvert the new system as much as they had the old, but we can certainly slow them down a lot more and given America another century of good government.

Tue, 07/10/2012 - 02:01 | 2601230 TheObsoleteMan
TheObsoleteMan's picture

Romney has a snowball's chance in hell of winning in November, regardless how bad the economy is. The republicans have sealed there own fate, and possibly forever. The demographics are against them. They sat back and allowed tens of millions of democrats to pour across our southern border AND DID NOTHING TO STOP IT. Pandering to the "religious right" has hurt them too, they seem to have fallen behind the times on most social issues in the eyes of many. Then, they constantly put forward candidates who are seen as either tainted {Bain Capital} or too old {McCain, Dole}. Women have returned to the democrat party after years of voting mostly republican thanks to Reagan. The young are finally showing up at the polls, and they too vote the donkey in large numbers. The only voters the mainstream republican party has are straight white males over 40, and evangelicals. That is not enough to get elected. The Kenyan pretender will do what he has always done: Play the blame game. Blame Bush, blame the tea party, blame the republicans in CONgress, etc, etc. We are stuck with him for another four years {and his gorilla looking wife too}.

Tue, 07/10/2012 - 09:47 | 2601793 toady
toady's picture

On the contrary, the vast majority of illegals vote Republican. In fact, every one of them that I know (20 or so...) votes PRI in Mexico and are 'values voters'(anti-gay, anti-abortion, anti-progressive) here in the states.

Tue, 07/10/2012 - 12:37 | 2602531 TheObsoleteMan
TheObsoleteMan's picture

Toady; How they vote back home in Mexico, and how they vote here are very differant. All they want here is the politican who will subsidize them the most {feed me, clothe me, educate me, medicate me, house me, job me}. Nobody does that better than a democrap.

Tue, 07/10/2012 - 04:55 | 2601348 oldgasII
oldgasII's picture

When insiders start selling their stock you know a company is in trouble.  When more and more Democrat politicians are avoiding their convention you know the administration is in trouble. "Save Que Put"

 

Tue, 07/10/2012 - 06:06 | 2601379 orangegeek
orangegeek's picture

Obama's lone concern is the stock market.  He knows he's out of work if the markets slide.

 

A weekly SP500 shows that a bull market is good for incumbents and a bear market usually leads to a change.

http://bullandbearmash.com/index/sp-500/weekly/

 

The same held true for Carter, Reagan, Bush Sr and Clinton.

Tue, 07/10/2012 - 06:14 | 2601384 kiwipeter
kiwipeter's picture

the fact that Rommney is only 2-3% below BO in the polls suggests to me that BO will lose in a landslide. Everyone knows the Kenyan is a dud, but are only waiting for proof that MR is not worse. Once it is shown MR is of similar calibre I feel he will waltz the election, 350-190 or there abouts.

Tue, 07/10/2012 - 06:53 | 2601405 overmedicatedun...
overmedicatedundersexed's picture

if we have good reason to not trust our gov BLS numbers, our news (MSM), the polls these news groups report on, the validity of votes (diebold no way to document what was cast as you vote)..voting becomes just another way to commit our selves to a pre selected out come, by the so called elite power brokers..GOP wanted open borders as much as the Dems as an example of same, or better yet a GOP Supreme Court judge up holding the right of gov to force us to become part of a health plan, kelo on and on..Bush was hated by the left while he implemented much of what the left wanted( medicare expansion, federal education take over and no action on illegals at our borders)..some fools in the democrat side never saw that he was one of them thru and thru.

Tue, 07/10/2012 - 06:37 | 2601394 Inthemix96
Inthemix96's picture

Its all a test folks.  Lets see, do either of these scum fucks pass the litmus test?

If having come knock on your door, they are both bursting for a shit, the turtles head is sticking right out, who would you let use your john?

A)  Obommer?

B) The Glove?

Fuck that, let the cunts spoil their £2000 suits in my profesional opinion.

Tue, 07/10/2012 - 06:58 | 2601409 Heroic Couplet
Heroic Couplet's picture

Americans who've had their jobs sent offshore don't care about Wall Street. The Internest has enabled middle class Americans to know bankers, hedge fund managers, and Wall Street is the problem. Put it another way: I know 2 billion dollar corporations who refuse to have an IPO, and mom and pop businesses who won't be on Wall STreet ever.

The upper 1% are not enough to get any one candidate elected. No one who is unemployed is going to believe "tax cuts create jobs." They know tax cuts go into private pockets. One of the millionaires at the Buffet Rule stated it best: "Tax cuts have no effect on hiring. If I see suplly and demand for my product, I'll hire, and that's the only way I hire."

Tue, 07/10/2012 - 07:04 | 2601416 overmedicatedun...
overmedicatedundersexed's picture

heroic I hope you are an honest person, so here goes: Tax cuts reduce funding for gov..money not given to gov is then available for private use. unless you are a big gov kinda guy..you have missed the point of less money going to gov.

Tue, 07/10/2012 - 08:03 | 2601531 chistletoe
chistletoe's picture

"Tax cuts reduce funding for gov ..."  what planet did you just step off of?  Where, exactly, have you been for the last 70 years?????

 

not what I was gonna say, but sheesh ....

 

I went to bed last night with my window open

and drifted off to sleep to the strains of The Who singing

"Won't get Fooled Again" ...

"say hello to the new boss, same as the old boss ..."

damn but our generation knew some stuff ....so  what happened?

Tue, 07/10/2012 - 08:43 | 2601635 overmedicatedun...
overmedicatedundersexed's picture

i guess my point is less money for gov is my choice vs more taxes and fines and penalties and fees going to the bloated pig called gov.

Tue, 07/10/2012 - 09:33 | 2601754 lakecity55
lakecity55's picture

Start with Mittens.

He doesn't eat dogs. That's one small improvement.

Keep going from there.

This mess did not happen overnight.

Start with local elections, work our way up.

Return the Constitution to Supremacy.

Do NOT follow this link or you will be banned from the site!