I called Victor early this morning because I wanted to get his undivided attention on the mid-term Election results. Here are a few snippets, but you should listen to the podcast for the full brunt.
Although the Stock Trader’s Almanac 2011 suggests otherwise, Victor does not think the current White House / Congress combo is doing to do anything for the stock market.
“We still will not have a vibrant, strong economy if people cannot overcome the system…the Marxist, Liberal system holding back the United States,” he said. This is exactly what I was getting at in my post at the
Communist Manifesto, The Huffington Post What Choice Do We Have In November? We’re Not Free No Matter Who Wins.
“Pelosi, Reid, and Obama are Marxists. Boxer and Brown? Oh my god. You can kiss the CA Muni bond market goodbye. They are not going to get a bailout,” he stressed.
I asked him to put a handicap on The Stock Trader’s Almanac research that suggests that a Democratic White House and Republican Congress has resulted in an almost 20% rise in the stock market. “No chance.” And that’s in the face of the fact that there has not been a down year in the market during the third year of the President’s term in the last 72 years!
The worst “third” year was under Hoover in 1931, when both the White House and both chambers of Congress were Republican: The Dow was off over 50% and the S&P was down 47.1% according to the Stock Trader’s Almanac 2011
In what could be a foreshadowing, Hoover and the Congress passed the Federal Home Loan Bank Act into law in 1932, to spur new home construction, and reduce foreclosures. The plan seemed to work, as foreclosures dropped, but it was seen as too little, too late.
When you put enough people who would otherwise be on the dole, on the ever-expanding government payroll, you will always get re-elected because not getting elected means no more government grilled cheese.
Government will never become smaller unless there is a revolution.