Vail Daily letter: Too similar to ’30s
Vail, CO, Colorado
The month of May was the worst May since 1940. That’s 70 years ago and therefore extremely important. But all the bulls totally ignore the significance. They talk about pullbacks, typical bull-market behavior, you have to buy when blood is in the streets, etc. They go back 10 to 20 years for comparisons, not realizing that the current situation is very similar to the 1930s.
How can we know that? Because the speculative bubble that preceded this was similar to or larger than the one that burst in 1929.
Stephen Wynn, head of the large casino firm, appeared on CNBC and was rather blunt on his opinion of Washington policies. He said he is moving his headquarters to Macao because China’s governmental policies are more dependable than those of Washington.
He quoted Alexis de Tocqueville, a Frenchman who was fascinated with the U.S., who wrote more than 100 years ago, “The American republic will endure until the day Congress discovers that it can bribe the public with the public’s money.”
Well, that day arrived! More than half of the population doesn’t have to pay taxes. More companies and individuals are leaving. It’s a shame that the land of the “free” is threatening to become the land of the tax slaves. About 10 percent pay 40 percent of the taxes. What’s fair about that?
By the way, there is a news item that someone in the White House has broken a law, which would be a criminal offense. The person named is at the top level. This could be very serious for the administration. For information, just Google Joe Sestak. This would have some very important implications for investors, as well.