A perfect storm of circumstances is coming together to make 2011 look like a bad year economically. First, the Bush tax cuts will have expired. Less disposable income = fewer lap dances and VIP's. Secondly , Ken Feinberg, the White House Pay Czar is slapping salary and bonus limits on the seven companies still getting TARP- AIG, Citicorp,BOA, GM, GMAC, Chrysler and Chrysler Financial. He also wants to limit perks to $25,000. Bernanke wants to apply similar guidelines to all member banks of the Federal Reserve and the village idiot aka Senator Chuck "The Schmuck" Schumer wants to limit pay at ALL publicly traded corporations. Together this will ignite a brain drain as many top Wall St. minds will go to London,Hong Kong, Canada and Australia to evade these income limits.
By 2011 the current bull market will be a distant memory and higher commodity and import prices coupled with huge budget deficits will cause a serious decline. Higher energy prices and higher taxes will spell disaster. Obama et. al. want higher oil and gas prices.
The Stock Market now is like the last cocktail party on the Titanic. Everybody knows the party can't last. Everybody knows what the tax situation will be and that we don't have an inflation indexed tax system. Everybody knows we can't sustain trillion dollar deficits and that the Treasury has to raise interest rates to sell our debt.



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