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alstry (35.41)

The Lesson Of Lesson #1

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May 14, 2010 – Comments (2)

America was built upon the foundation of a rule of law and that All Men Are Created Equal......no one person is above or below the law.

Our nation was founded by a group of people who left environments where the rule of law was selectively enforced and many were persecuted.  Our founding fathers created a template so such behaviors would never happen in America.

Upon this foundation, the greatest industrialist nation in the world as built as capital had assurances that once deployed, a strong and fairly appllied system would protect it.....investors didn't have to worry about the government arbitrarily seizing property, excessively diluting the currency, or interferring with contracts.

Slowly since 1900, probably up some steam around 1980 and really accellerating after 2000.....the rule of law started to erode..........and after the 2008 banking crisis.....it was completely eviscerated. 

We took a nation and economy built upon private property rights and  private enterprise facing a massive financial crisis and only bailed out bankers, govenrment, Wall Street firms and let the rest of the economy rot.

Now we are feeling the effects....cities, counties and states are running out of money due to evaporating tax receipts as we are told there is a recovery....schools and hospitals are shutting down, and millions of Americans are suffering massive wage cuts and losing their homes and life savings.

All of this was foreseeable.....very clearly....because instead of equally applying the law....we selectively imposed it on the majority of the population and "bailed out" those who primarily placed us into this situation by allowing them to circumvent the law or changing the law in their favor.

When ALL men are created equal......you simply can't bail out one party to a contract.  This is simply the basis of Marshall Law where you can't have seperate but equal.

Once you break the rule of law....you destroy the foundation and the system which our economy was built upon.  Once the foundation is compromised, the whole system above crumbles.

As a result, our nation is now running on a foundation of economic anarchy.....and investing has simply morphed into a game of high stakes gambling.

If you Fools think  your odds are better in the stock market than playing in Vegas....my suggestion is you retake a probabilty/stats course.  Based on the fact that the Las Vegas Gaming Commsission is still seemingly enforcing the rules......it is more likely that your odds in Vegas are actually much better....especially if you were a good investment analyst which would have led you to the wrong conculsions.

And if any English Major Fool tells you different........welcome to the Digital Age.

2 Comments – Post Your Own

#1) On May 14, 2010 at 9:45 AM, alstry (35.41) wrote:

Oh I almost forgot the lesson:

When it is the Soverign that gives you your property rights and essentially that which makes up your perceived wealth.....THROUGH THE EXERCISE OF THE RULE OF LAW.......it is the Soverign that can take away those rights which you thought you had in the first place.

When the sheep can't even notice that their system is crumbling around them....there is a fundemental question whether the sheep even deserve to be stewards of wealth or should that wealth be stripped from them and given to more productive and aware sheep?

Welcome to the Digital Age....it will be exciting.

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#2) On May 14, 2010 at 10:52 AM, alstry (35.41) wrote:

The same moral principle applies here as in the Madoff situation.

WIth Madoff, many of his clients suspected something may have been on the edge....but due to the fact that things had been so good for so long, he was so powerful and influential, and that the returns were so consistent....

Despite what may have been their better judgment.....the allure of such wonderful returns was too enticing to resist.....even if it was a fraud.....until......

Morally....did those people who knew really deserve the wealth and lifestyle they maintained based on those fraudulent gains?

Many don't think thieves, or con men should live lavish lifestyles....should those that get money from such people benefit from the improper gains?

Now the moral question as American Fools......if our system is truly nothing more than a fraud being perpetrated by Wall Street Banks and supported by our government officials.....do we derserve the lifestyle we maintain?

Welcome to the Digital Age.....it will be exciting....where productive knowledge will be wealth.

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