As the Dow Jones Industrial Average hits an all-time high, one of my dearest friends emailed me and asked “isn’t this a major bull trap?”
At the same time, I was reading how legendary hedge fund manager Stan Druckenmiller was pontificating that “it’s going to end very badly.”
How could either be right?
Well, let’s examine the evidence that supports a record day on Wall Street.
First, let’s start at the top.
It’s pretty clear that our government is run by a fascist, meaning “one who has the political philosophy that is no philosophy at all, and does whatever appears necessary.”*
According to the words of the president, the “sequester” was life-altering until it wasn’t.
Yet, according to the actions of the president, the troops are leaving but the drones are staying, including the ones domiciled in the United States.
We could find a book with similar words and actions, but let’s move on.
The USSR was founded on central planning, a basic tenant of communism and we all see how successful that program was.
Yet, Ben Bernanke has enthusiastically embraced that exact principle. So, it’s possible that someone could call Ben a quasi-communist. Of course, it wouldn’t be me.
Furthering the Wall Street building blocks, the president, in his most recent inaugural address, talked about taking preschool activities away from local communities and even the parents. That’s great news, given the wonderful job done on both the primary and secondary educational levels by the government which includes the following:
· Record student loan debt and default
· Since 2006, one-half of bachelor’s degree holders are unemployed or underemployed
· Our high school students ranked 25th to 28th in the world in science, math, and reading behind the Slovak Republic, Macau, and of course the intellectual giants, #1 ranked Finland and South Korea
Speaking of Korea, North Korea has recently announced that it may not adhere to the North/South armistice agreement. (For all you liberals, not our Civil War, but the 1950s Korean War.)
Couple these issues with Italian comedian/statesman Beppe Grillo’s most recent European ground shaking pronouncement, and you have all the reasons for the Dow to ascend to new heights.
Undoubtedly, from Oakland to Detroit, widespread unemployment to shadow housing inventories, I can find a multitude of reasons why the Dow is currently setting records.
Yes, everything makes absolutely perfect sense to me.
Now, if I could just find those slippers so I can get back to Kansas.
*Ancient Rome: How it Affects You Today – Richard J. Maybury