Peter Yastrow's Blog

Economic Update

The concept that our economy could be in poor shape, but equities would still rally seemed counter intuitive, but has proven to be spot on. Money the world over needs to be put to work, and in the face of sub 4% 10 year yields, equities look quite attractive. Or maybe we could say equities are not unattractive. Equity investors should pay careful attention to interest rates. IF  interest rates were to rise, then the party for stocks would be over.

At this point, it does not look like rates are ever going up again, too much money looking for a return. Even with all of the government spending, the massive deficit, and the future credit rating being questioned, rates remain extremely low. Is deflation already upon us ?

j.o.y. to the world                                         peter

Tags: equities interest rates

Evil Meanies and Soft Hearted Weenies

I did not vote in the last election.

I could not come to grips with either Party’s agenda.

Our government, for better or worse, is a two party system. Democrat or  Republican, pull the lever, and cast your vote.

 I could not decide.  The republican party as every democrat knows, consist of gun toting Christians who don’t believe in evolution, don’t allow abortions, and are always trying to “stick it to the little guy.”  The democrats, as every republican will attest, are a bunch of soft minded do-gooders, who want to burn the flag, and rob the rich to give it to the poor.

 Now suppose, I am a citizen, who believes in evolution. Thinks that guns should only be permitted on hunting reservations. A citizen who believes that the abortion question is an individual’s decision, and if a woman needs an abortion, then it is her choice to get one, and a doctor’s choice to perform the procedure, not the Government’s. I want small Government, that won’t tax me too much. I can take care of myself and will be responsible for me and my family.  Who should I vote for?

 The Republican Party with its Right wing connection, is a bit scary. The separation of Church and State has always been a big issue for me, probably because I am not Christian. So it is a bit scary to think that Christian Fundamentalists who want to teach creationism in our schools, outlaw abortions, and consult God in their day to day decision making, are supporters of the Republican party.

 The Democrats are just as misguided. The Democrats want everyone to have everything and do not seem to understand the concept of cost. They act as if the Republicans are mean, and nasty old scrooges, who do not care if people are suffering. The Democrats in their silver armor on white steed will rescue us all,  regardless of the costs, because they would never let some little issue like a trillion dollar deficit stop them from taking care of their voters.

 I do not fit in either party.  My economics education makes it impossible to vote for the Democrats. Their policies and goals are short sighted and far too over reaching.  The short term benefits will be overwhelmed by the longer term deficits. However, I also have studied ethics, and science at some length, and find it almost impossible to vote Republican. The Republican party can not be taken seriously if some of their most outspoken members do not believe in evolution.

 Whether you are an EVIL MEANY Republican, or a Soft Hearted Weeny Democrat you are part of the problem. Government is a problem, not a solution. We form societies which allow us to cooperate with each other. Government is a necessary evil for societies. The rules must be made, and enforced for a civilization to exist. But the larger we make our governing body, the more money it requires.  The larger we make our Government the more inefficient our economy becomes, relative to other countries.  If we want to compete and succeed in the global economy, our government needs to be lean and efficient.  Reduce taxes on our businesses, and consumers.  Keep the costs of doing business low, and reward entrepreneurs who take personal risks and succeed.  Let Freedom ring, let us all pursue our own happiness.  No one promised us happiness, but we all have a chance. That is America. That has always been the key to our success.  Go out and try to find your dream, and do not hurt other citizens in the process.

j.o.y. to the world                           peter