Romney comments outlines Reaganomic objectives

America is getting a third world education, according to Mitt Romney, and the reason is the Teachers Unions. Seperately Mitt Romney said unemployment over 4% is unnacceptable. Now switching to some Krugman analysis, we see over the past 30 years that Reaganonmics is actually a systematic method of shifting the wealth of the nation to the top 1%. This can be proven by simply acknowledging the top 1% have increased their wealth significantly more than the 99%. Since the Romney wants to continue the Reaganomic trend by breaking unions, it is clear the underlying objective is to lower wages, and with lower wages it is possible to hire more workers (thus the 4% unemployment) and increase corporate profits by offering less money and services such as retirment, dental and so on to the employees. This is simply industrialization and would expedite the shift in wealth further to the top 1%. As I have said before, I do not mind if that is the objective, the part that bothers me is throwing out 4% unemployment but not giving the entire story behind how 4% will be achieved so voters can make an objective decision.

Strengthening dollar a problem for growth

Throughout the recovery, the weak dollar has fueled growth by increasing exports. Now with the Euro problems, the dollar is strengthening which could put a damper on that growth. The stronger dollar lowers commodities, especially oil, which could get the consumer moving, and even the housing market seems to have found a bottom so now the question is the domestic market strong enough to support the economy until China and Europe can get their act together. Ironically, this could mean Europe is the best investment now, especially if it sheds the troubled Greece, and then back up Italy and Spain with stimulus and a lower currency to increase exports. It is very tough to say if that scenario will happen, so markets will remain undecisive until their is an endgame, and then markets will move big accordingly. The problem is the banks invest before the individuals, so you have to take the risk of choosing a scenario and believe in your investment.

Facebook Flop

In the previous post I had assumed that the sellers had gotten the selling out of their system in the first day of the Facebook IPO, but clearly the stock has been stepping down, desperate to find a bottom. Meanwhile, Apple went back to it's SAFE Mode of 550. The markets found a bottom to walk on to figure out which Europe crisis they have to deal with (Greece leaving or Greece staying). Interesting

Facebook vs. Apple

It almost pains me to be right that Apple bubbled and popped. Now Apple is facing a bitter rival that could threaten it's stock price further, Facebook. Apple used to be shrouded in mystery, playing jokes on investors with ridiculously low estimates, grand new products, and so forth. Now the best they can come up with is copies of their own products, and now a television that is not going to be much different than a Samsung television, since Samsung already essentially makes the Apple products. In this regard, Apple is behind in the game not the innovator. This lack of innovation has forced the ruthless investors to take there money out of Apple and look for other places to make money. I am going to stop here and mention that I bought a whole ten shares after hours of Facebook. Why? I know that Facebook is a complete scam company bleeding information out of the users. Facebook is like a double agent, the users think they are getting a great service with privacy, and the advertisers think they are getting connected to a billion customers, when in reality facebook is just backstabbing everybody for their own profit. Just look at the IPO, how they milked the investors for every cent. Also, Facebook is not a growth company, it is already a bloated misguided company that is not sure how to control the party it created. Those should be arguments against the stock, normally, but the market is correcting, or perhaps crashing, and that means a lot of big money wants to buy in soon. That money will flood in to the stock which the investors think will make the most profit. Previously, that stock was Apple. The banking sector looked good until JP Morgan popped up like a scarecrow in a corn field to scare the crows away. Therefore, the speculative money will land in Facebook. Nobody knows the profits or losses or business practices, but everybody knows the name, and just on that alone investors will build it into it's portfolio. I will summarize. Investors have seen the potential of Apple, they do not know the potential of Facebook, so they will flock to where the most potential gain is. If it is Facebook, Apple will have a hard time regaining it's glory, and will join AOL, Cisco, Microsoft, and other has beens to share stories of how they used to be so great. Steve Jobs would have spanked Zuckerberg, but Steve jobs is dead, so now investors are left to reluctantly follow Sugar Boy.

Market correction bad news for Apple

In case anyone did not notice, the apple bubble is bursting. It has now boldly broken through downward support levels trying to find traction down the slippery slope it made by fanatic buying and overconfidence. Apple is a good company, they will not go back to 0, but the broader correction is making investors rethink their portfolios. Apple was a buy because it always went up, and this is no longer the case, and there is now a big chance to lose big money on Apple. That is why Apple is falling faster than the broader market. Just on technical support, Apple will have to hold 500, but if things really fall apart in Europe, my crazy Apple 400 call could give Apple a new base to start with realistic growth without the wild speculation.