So which is worse for the market? The Coronavirus or the deficit and debt?
Well in the short term Covid-19 or Coronavirus is going to reek some market havoc, maybe cause some business slow down for 1-3 quarters, overall Asia may have significant economic slow down, but eventually things will settle down. Unless we are being grotesquely lied to, the market effect will past within a year or sooner easily. The real concern is people’s health and taking care of the ones who are adversly affected by this disease. That is where our worries and energies should be, not the market.
The debt and deficit quietly rage on. And if you add into the ever growing wealth gap there is a real recipe for disaster. I know there are still rational people out there that see this rising tidal wave coming. Why their voices are drowned out I can only guess. And my guess doesn’t offer much hope. Could even the rational people have drowned themselves in the current orgy of market greed? Or are they afraid to speak for fear of the President calling them names? Really and truly that is all he has. He has no policy, no plan, no path forward, only bullying and a hyped up group of angry old white people who were lied to for so long by Fox they cannot tell fact from fiction even if their lives and livelihoods depended on it. And unfortunately it does.
Bernie is not the answer, but he has a bunch of scared young people who have half a clue about the worst case scenario facing this planet and their economic futures.
And whether or not it becomes Bernie v. Donnie in November that dynamic will continue to play out for years to come. The Democrat establishment continues to ignore the problem, hoping some moderate will win the day.
Unfortunately no Democrat “moderate” (ie Biden or maybe Klobuchar) has a plan. They just hope you think they have an answer so they can beat Trump. We need Trump out, but we need something different also. Our outstanding debt and deficit cannot handle Bernie’s plan. And no the market won’t crash completely if he is elected and probably 90% of his ideas won’t pass Congress, but four years of ineffective leadership even well intentioned leadership is not going to help.
Are we past the point of no return? No. We do not need any of the current answers though. We are at a unique crossroad in history so we need unique answers. It doesn’t have to be radical, but it does have to be creative.
One example, all the oil people say the world will end and you won’t make any money in the stock market if we get off oil. The world will be here and you will make money even when we wean ourselves off oil. The how we make the transition is the key. This is where we need creative leadership. I have spouted ideas on this blog before and I am not afraid to do it again. Yes, the infamous ficiticious third party platform for 2020 is coming soon. As I always say, if I can get creative on my living room couch, there are others much more intelligent than me that can do the same. And probably be effective.
The question is will they get off their duff and step up to the plate. There are many out there who have the talent, resources, and connections to do the job, so someone please go kick them in the back end and lets get this party started.
And if you are bored, Super Tuesday is coming so get out and vote for Bill Weld in the Republican Primaries. Why not? It definitely can’t hurt. And if enough people do it, the Trump meltdown will be interesting to watch.
Otherwise spring is here, the weather will be getting better till it gets hot enough for us to begin complaining about the weather again.
The Mavs are still keeping me engaged and excited, but inconsistency on defense is driving me crazy.
And speaking of basketball, some of the best weekends in sports are right around the corner.
Cheers
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