Monday, March 9, 2009

The GOP and Self Inflicted Wounds

In May of 2007, during a nationally televised Republican Presidential debate, three of the GOP's candidates indicated that they did not believe in evolution. At the time, we reckoned that it would be quite difficult to surpass this moment in terms of the level of embarrassment it inflicted upon a political party Since that time however, the GOP has obstructed every economic rescue effort(without offering an alternative), portrayed Rush Limbaugh as the face of the Party, and now has allowed Richard Shelby to go on national television and advocate that Bank's be allowed to collapse. 

Apparently, Senator Shelby is not familiar with the elementary school concept known as cause and effect. Now, we are quite certain that the Government's decision to allow Lehman Brothers to fail will come to be viewed as one of the most decisively poor decisions in American History. If the wise Senator thinks that market/economic conditions became strained following the Lehman debacle, he should know that a Citi failure would be immeasurably more destructive to the Global Economy.

Assuming that the Senator does understand the potential implications, and is simply trying to further relish in his own notoriety via continued talk show appearances, we would hold the behavior to be even more irresponsible. As we have said before, Investors need to know the Rules of the Game. Government actions thus far have provided no blueprint worth basing investment decisions upon. Furthermore, Investors have also been forced to digest the erratic pronouncements of politicians bent on making name for themselves. This, we feel, is not constructive insofar as the prospects for a Recovery are concerned.
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