Professor Elam

Before there was a Warren Buffet, there was John Templeton.

Templeton pioneered the idea of global investing, was knighted, and no less than Prince Phillip, husband to Queen Eilzabeth, conferred his annual humanitarinan award.  I observed Templeton make the remark in the 190s that Americans (or anyone else) would not likely sit still for the sort of prolonged economic crisis that we had in the 1930s. Then FDR would thry this and that for years and years, all to no avail. FDR was never able to re ignite the private investing economy. Eight years later unemployment was still well into the double digits.

We appear to be headed to that end now, high unemployment and massive financial difficulty as I have cataloged here. The State of California cannot send a citizen a good check for an income tax refund. As my wife queried, how long will people let the government confiscate their real wages and return only a promise.

We just had the worst two months in stock market history in Jan and Feb. Clearly this is a no confidence vote in the Bush policies that Obama has continued, printing money and changing plans week to week.  CITI stock about a buck and GM has  Going Concern warning from its auditors.  Stocks melted another 300 points yesterday.  

Obama may have won the election but we will have another Congressional primary in about twelve months. While Congress has gerrymandered itself to near permanent status, as the last two elections have shown, there are some swing seats that determine who runs the show.  The clock is ticking and America is waiting for action not promises, until then expect lower markets. I chronicled the tea parties planned for April 15. If stocks are still melting then, expect the start of a real revolution.