Summary: We need speculators to "make" a market, do we really need a lot of today's politicians? I see it as too many times business today need to look at what politicians are doing and not what the market is "telling" them to do. Politicians are very good at getting elected, they would not be in that business if they could not get elected, but many are very lacking in their understanding how markets actually work. The market is the market, in its pure form it does not care about public opinion. Redistricting and how both political parties put districts together to maximize their parties chances in the next election. This process has given us some really amazing politicians. Not exactly the best and brightest get elected. At least one conservative talk show host does not have a good understanding how markets actually work. Government bureaucracies and politicians contribute to the creation of many market bubbles. Housing market is a prime example. They forced lenders to give loans to people who had no business owning homes. Now, Freddie and Fannie are in trouble and home prices continue to go down. Too many Harvard and Yale graduates in government and politics and not enough people who graduated from "State". Demand for silver and gold from places like China and India show just how big those economies have become and where those people are choosing to put their money. The direction of the economy in my opinion is shaped by the perceived business climate by the "Millionaire Next Door" than by what Wall Street does. Federal Reserve has used the quantitative easing to "bail out" wall street, but has it helped the general economy much? Many in government and these big quasi government institutions think they are smarter than the market. The market is always smarter than anyone person. Millions of opinions go into the market, and the whole is smarter than the one. European debt crisis and large states in the United States debt crisis is going to impact our markets. How, when, why, I do not know, but it is too big not to impact markets. Total collapse or run away inflation, who knows. I also am waiting for some government, U.S., China, who knows who to try and break food prices down. Can or will these big debtor states sacrifice enough to pull the world out of this crisis, or do they bring everything down around them? Be very careful in your marketing plans this summer.
