When it was announced that Jay Z and Kayne West won best rap song at the Grammys, neither was there to pick up their awards. I'm not sure what West was up to, although there had to be some artist there happy he wasn't around to snatch a mic. On the other hand, Jay Z was at home with his wife Beyonce and their new born baby-Blue Ivy Carter.
The couple created a stir when the name was released to the public, with a variety of opinions from it's really creative to "Blue" seems sad. Of course, in the world of stardom these days the name was actually pretty run of the mill. George Foreman gave his sons "normal" names, but they were all "George." Other than that, there seems to be a game of one-upmanship in entertainment.
It got me to thinking why Washington doesn't adopt this hip approach to naming their pet projects or other endeavors. For instance, the budget put out by President Obama yesterday was such a farce it screamed for a funky name. The budget was a giant spend-fest with nothing but a blueprint for how to shake down a modern society.
In addition to the $1.33 trillion deficit, the budget reaffirms the fact that TARP has become the personal piggy bank of the White House. Now we are told it will cost taxpayers $68.0 billion because a lot of money will be used to bail out homeowners. Last March, the CBO modeled for the bailout package to cost Americans $13.0 billion.
Ironically, despite the billions expected to come in from TARP, the White House raised the amount it wants to tax banks to $61.0 billion and called it a "financial crisis responsibility fee." That is almost laughable. Responsibility fee is rich coming from the administration that will bring the nation four years of trillion dollar deficits. It is really almost laughable, but I'm too busy crying.
Then there's the revelation that social security runs dry in 2020 when it will have a $2.2 billion deficit after paying out $1.4 trillion, or double this year's anticipated payout. I still think it's dumb not to put that money into the stock market in great American companies like Apple and Deere.
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Considering all the money that's poured in from Hollywood and Madison Ave, President Obama should be able to come up with creative, honest name(s) for the budget and other duties like the State of the Union addresses. Marco Rubio calls President Obama's budget nothing more than a "campaign document."
I think a better name would be: "Stealing Money in the Name of the Poor - Let's Get Those Bastards or Moxie Crime Fighter Money Inspector."
Yesterday's Session
Futures are higher despite a string of downgrades of European sovereign debt, which recalls the latest truism that if it is Tuesday there must be a string of downgrades of European sovereign debt. Did you ever think you'd have to be worried about the hit a downgrade of Malta could have on your savings and investments? On the other hand, this probably seals the deal for the largest money-printing operation in European history. Wall Street loves that, but at some point, if the patient continues to get these artificial jolts, you have to wonder when we are dancing with a stock market coming to life or spending the weekend at Bernie's.
I am concerned with the lack of volume, although we have forged ahead and engaged in the market. What we learned last year is that light volume leaves the market vulnerable to swift moves lower, and yesterday was the lowest non-holiday session in decades. It's something to be aware of, and if I had to err, it would be to overreact by taking profits and looking to buy on dips. Hence the conundrum of this rally that so many have missed. You have to be long, although big money players including a ton of hedge funds are trying to wait for the dip to get into the mix.
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