Many years ago, my investment mentor told me: If you have to bet your fortune on a politician’s rational decision, don’t. Remember, always short sell the politicians.
I had my doubts, reasonably. And now, after witnessing the entire fiscal cliff talk and do, I think he was so right. It is naive to believe otherwise.
Remember there was a time, probably in early Nov 2012, after the presidential election, when almost everybody was pledging that we WILL NOT go over the cliff? And now with D-day minus 6, without a fiscal deal agreement, it is almost 90% that we are going over the cliff.
Right. Always short-sell a politician. Why Naked Short? Because you don’t want to own a politician in the first place. They are bad assets, they are liabilities and they need to be sold instead of bought.
Among the politician groups, there are two types: the group that is pretentious and lame, the group that don’t bother to lie their intentions. Naturally, the Dems are the former and the GOP are the latter.
Many Dems, while they are super rich, while a few more taxes does not kill their business since they are either legacies or Hollywood super stars, they ask for everybody to pay more taxes. Right, like everybody making more than 250K a year or 400K a year made their money through some scam or crime, that they deserved to be screwed and support those who never paid a dime to tax revenue but receiving all the benefits through these man years.
George Cloony or Warren Buffett or Nancy Pelosi, do you know how hard it is for a middle-class (defined someone making around 300-500K in New York or San Francisco, 100 - 300K in other places) to struggle in such economy? I guess you don’t. Prove me wrong.
All Dems are doing is to cut the road from middle class to rich, both through mentality by demonizing rich or through legislation by screwing rich or the path to rich with taxes and laws.
GOP on the other hand, don’t bother to lie. They tell you in the face that we are rich and we are capitalists, we want to squeeze profits from you and you can join us too if you work hard enough and lucky enough. They are no Saints. They won’t give their hard-earned money to you for free. But I appreciate that if they can have a business-friendly opportunity (or rather profit-friendly environment) to make sure you have a possibility to be there. Frankly, I like this better, therefore I am leaning right.
The Cliff is approaching. Buckle your seat belt. Lock in your capital gains, lock your income gains and lock your doors in case there are looters.
Merry Christmas and Happy New Year, everybody. Buckle your seat belt and cliff diving here we come.