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Varchild2008 (84.58)

Socialism Is What I'm Worried About

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February 26, 2009 – Comments (16) | RELATED TICKERS: BAC , GM , F

I read Matt Koppenheffer's article and this is my response.  Unlike Matt, I am worried about Socialism and strongly believe whether you are liberal or conservative you should be too.

I am not advocating 100% Capitalism free of regulations.  I am not even that concerned about regulations.  The concern here is about my portfolio of various companys whose share prices have gotten obliterated last year and this year.  That is the concern and perspective here that all investors need in order to understand IF and HOW and WHEN Socialism will impact negatively any of your investments.

Right now President Jimmy Carter II has just announced a more than half a trillion dollar increase in the Federal Budget.  This elevates the national debt even further than the Porkulus bill.  It basically takes the supposed, inherited, Deficit and doubles it (not counting interest on all of the borrowing).

This in turn could jeopardize borrowing and lending from the federal government in the future.  It can jeopardize Pell Grants and Federal College Work programs.  It can impact every kind of federal lending imaginable to include the FHA.  Because, the Federal Government is left with a situation where it needs to lose that debt at some point.

And when the debt is so ginormously high, the Federal Government is left with no choice but to Hike Taxes, issue Fees, close Tax Loopholes, and basically punish every Man, Woman, and Child that works for a living.  The punishment will send Small Businesses, Mid-Caps, and Large Caps into either bankruptcy or into the decision to ship out to another country.

Our nation already has the highest or at least 2nd highest corporate tax rate.  President Jimmy Carter will eventually remove President Bush's tax cuts in 2010 to pay down this debt.  But given how many "RICH" people will do whatever it takes to avoid these taxes, I do not see why President Carter would stop at that.  Cause, I don't think removing President Bush's tax cuts is going to miraculously nullfiy an almost 2 Trillion Dollar Deficit.

But, that's no big deal.  CAP and TRADE is coming.... EPA Regulations on Carbon is coming.
All sorts of things that make businesses struggle further to make a profit is coming because of all of the Socialist Style Spending Spree.

These environmental regulations will be used to fix the deficit and will make the things you buy much more expensive.  The price of Corn went up because in part due to Ethynol.  The price of a CAR in California costs much more than anywhere else due to a special tailpipe and other required, parts for reducing pollution.

Are we all prepared to see President Clinton bring back the Off-Shore Drilling Ban?  How many Jobs will that create?

Matt can tell you how much he doesn't care because perhaps he buys "SKF" or shorts "XLF," or buys GOLD "GLD."  Matt hedges his investments enough to be nonchallant about Socialism.

So, this is your opportunity to Hedge your own portfolio against Socialism while you still have money left to do so.

Because in this market.... You can't sleep well at night like MATT under a Socialist Regime unless you have a really good hedge against a further deteriorating economy.

In the long term Socialism leads to Double Digit Unemployment, just like France.
Matt should be so lucky that he still has a job.

16 Comments – Post Your Own

#1) On February 26, 2009 at 12:29 PM, verdure (< 20) wrote:

Nice to see that someones enjoying their ride on this republican corporate train wreck.  If you're not advocating 100% capitalism, what percentage are you advocating?  Should we continue schools, highways, disaster relief, ..... or just your favorite corporate relief packages like crop insurance for agribusinesses, ready and susidised access to mineral and oil resources, corporate protection from consumers and small stockholders....

Wouldn't it would be horrible if the sheep banded together and said no to health insurance rip offs and formed a national single payer system like Austalia, or boycotted companies who off-shore employment and profits (thereby paying the lowest actual corporate tax rates in the world), or tried to save the last vestiges of living green planet for the following generations?  Its just too gastly to think of .........

 

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#2) On February 26, 2009 at 12:47 PM, Varchild2008 (84.58) wrote:

Wouldn't it be better to have actual Tort Reform for a change? Rather than having all of the Democrat Sheep Lawyers allow our hospitals and health care industry to sustain multi million dollar lawsuits.... Which is the reason our health care costs as as high as they are.

Wouldn't it be better to allow our Free Market Competitive environment bring costs down for a change and not have a Federal Government find ways to push them up?

And continued blame on the Republicans for things Democrats did and supported is laughable.  Democrats were in favor of all of these subsidies for Agribusiness.

President Jimmy Carter II (Obama) even has an Earmark for Agribusiness right in his Porkulus Bill! 

Conservatives have been absolutely outspoken and loud about the subsidies.  We don't support them.  We support making our Auto Industry viable by not having all of these Cafe' Standards on Fuel Emmissions and Efficiency, that has lead to small cars that nobody wants to buy (and they still don't.).

The best selling vehicles last year included a TRUCK not an Electric, Hybrid, Go Cart.  It was the Ford F150.

Isn't it about time to reduce the cost of things you buy at the store?  Isn't it?  That is the biggest tax cut we could possibly offer Americans.... Reduce the Federal Government's influence on all of our businesses and let our Corporations produce profits for a change.... Rather than having to borrow money to pay for people's pensions.

Social Security is the biggest MADOFF in U.S. History and no one on your Democrat side wants to reform it.  They just think we can somehow sustain everyone's livelihood on endless Taxation and when Taxes can no longer foot the bill.... We borrow from China and beg China to buy our Debt Bonds.

I can't wait when CHINA finally says "NO!" to buying more of our debt.  Oh... Nevermind... You'll just blame the Republicans for the mess the Democrats got us into (exactly as you are doing today). 

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#3) On February 26, 2009 at 1:19 PM, saunafool (98.98) wrote:

I live in Europe. Socialism is great. Nothing to worry about.

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#4) On February 26, 2009 at 1:27 PM, dargus (87.65) wrote:

I think verdue and Varchild2008 are right. It is Democrats' and Republicans' fault. Let's get those bums out of there!

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#5) On February 26, 2009 at 1:32 PM, outoffocus (23.72) wrote:

The 2 party system sucks and will be the downfall of America.

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#6) On February 26, 2009 at 1:37 PM, MikeMark (29.83) wrote:

We may be about 20-30 years behind the curve.

Socialism (and big government) have been with us for quite a while.

Look at and think deeply about the period from 1900 - 1950 and all of the 1800s. Read "Tomorrow's Gold" and "Economics for Real People" and "Economics in One Lesson". Really understand the whole economic playing field from a historical perspective. That will give you vision for your better future.

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#7) On February 26, 2009 at 1:50 PM, cbwang888 (25.98) wrote:

Only bank loss are socialized. Mega profits still go to some individuals (top executives).

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#8) On February 26, 2009 at 1:51 PM, TMFKopp (98.93) wrote:

Nice post Varchild and glad to see that my article is inspiring disucssion. Did want to correct you in one area though -- I am not short financials any way, nor do I own gold or any GLD shares. In fact, Fool employees are required to post their holdings in their TMF boards profile, so if you're interested, you don't have to guess what my exposure is.

Matt

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#9) On February 26, 2009 at 4:53 PM, Varchild2008 (84.58) wrote:

I phrased my words wrong. I was trying to say that you "probably" do those things... Not that you actually do them.

I apologize... My bad... My typo... I don't edit because it's difficult to process anything on motely fool...tons of errors.

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#10) On February 26, 2009 at 5:20 PM, Dart65GTConv (< 20) wrote:

  They working fast there time is short. The real america will not tolerate this propaganda brigade of lies. And housing prices will stablize. The chinese are starting to hit the forclosure market hard. They need that rent to lend it back. Smart people, they take action. America is has an incurable case of the gimmies  This perveted system of rewarding  liers collecting disability and welfare cheats and general hoolagans and the such to gain votes will not sustain economicaly.  Go ahead keep it up the cards are on the tablle and i'm glad, I lived a full free life and will witness this debacle with joyfully.

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#11) On February 26, 2009 at 5:30 PM, wolfecraig (< 20) wrote:

Varchild2008, thank you. Capitalism is the cure. Socialism is the disease. Verdure, get a grip. Government intervention in the free enterprise system caused this problem. Since you brought it up, President Bush tried 18 times to get Congress to address the looming problems with Fannie Mae and Freddie Mac, each time to have the Democrats stop the attempt. Well, you got what you wanted, an extreme liberal in the White House. He is spending us in to Socialism faster than we can catch our breath. Enough from me. If you truly cared about people, you would understand that the only real way to help a person is to give him an opportunity. Liberalism takes his opportunity away. Just look at how well the war of poverty has worked out. I am sure that you just love people to death.

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#12) On February 26, 2009 at 5:35 PM, wolfecraig (< 20) wrote:

Varchild2008, thank you. Capitalism is the cure. Socialism is the disease. Verdure, get a grip. Government intervention in the free enterprise system caused this problem. Since you brought it up, President Bush tried 18 times to get Congress to address the looming problems with Fannie Mae and Freddie Mac, each time to have the Democrats stop the attempt. Well, you got what you wanted, an extreme liberal in the White House. He is spending us in to Socialism faster than we can catch our breath. Enough from me. If you truly cared about people, you would understand that the only real way to help a person is to give him an opportunity. Liberalism takes his opportunity away. Just look at how well the war of poverty has worked out. I am sure that you just love people to death.

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#13) On February 26, 2009 at 5:49 PM, jmt587 (99.89) wrote:

Yeah, what a crazy bunch of ideas Obama has, like including the cost of the wars in the budget.  How stupid, obviously that isn't real money we're spending over there.  And I'm sure those wars will be paying for themselves in no time.  I am so angry with him for creating a realistic budget that includes what we are actually going to spend, and for trying to narrow the deficit by closing tax loopholes and making people and companies pay their fair share.  How dare he?!

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#14) On February 26, 2009 at 7:01 PM, Varchild2008 (84.58) wrote:

Thank you jmt587 for the fact that you can not name 1 single spending cut in Obama's budget.

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#15) On March 05, 2009 at 10:35 AM, jmt587 (99.89) wrote:

Sure I can.  Military spending in Iraq.  That's a biggie.

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#16) On March 05, 2009 at 1:40 PM, jmt587 (99.89) wrote:

Oh, and agribusiness subsidies! Those are being cut.

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