Are You Surrendering Your Rights b/c You Don't Know the Truth?

Psalm 46:10 "Be still, and know that I am God; I will be exalted among the nations, I will be exalted in the earth."

So I’m going to use my blogspot as a type of political forum today. I can’t take credit for the material I’m sharing but I can be the person who decides to use my audience to get information out for the public to be aware of. I was taught growing up that you should never vote for a party affiliation but for the person running for office. I’m not turning my blogspot into a political arena, I just picked up a newsletter from the President of my bank today and this is what he had to share with his audience:

The Bottom Line
Is Capitalism in Danger?

Volume V Issue VII - July 1, 2009
A Monthly Financial Commentary for our Friends, Clients, and Advocates

Was justice served with Bernard Madoff’s recent sentence of 150 years? Will this send a message that white-collar crime doesn’t pay? It depends on whom you ask. In watching interviews on CNBC of those who lost money in the 50 billion dollar ponzi scheme, the responses are mixed. Madoff is likely to go down as the poster child for the dishonest indulgences of the middle part of this decade. In his own words he “ had left a legacy of shame.” The battle cry, as a result of this and many other fraud instances yet to be uncovered, will be “regulate, regulate, regulate!” Business owners can count on more hoops to jump through in the future. It may be that the most successful businesses in the future are the ones who operate best within the government’s parameters. Just as there are accusations today that regulation was too lax in the past, human nature will swing the pendulum too far the other direction in the future. I would speculate that the Republican candidate for the Presidency in 2012 will be running on a platform of “less regulation” - since there is a chance the nation will have grown tired of it by then.

So, is Capitalism in danger? Is legislation afoot that could transform this nation into a socialist nation? Milton Ezrati’, Senior Economist with Lord Abbett, answers theses questions with a “no.” Although he concedes that we are entering an age of increased government regulation, higher taxes, and overall government involvement, he maintains that the “fundamentals of capitalism remain intact.” He makes the argument that those who will bear the brunt of the regulatory burden will be large firms that have become systemically too important (a.k.a. “to big to fail”). Stricter government regulations will make these behemoths less able to innovate and maneuver in the marketplace. This will open up opportunity for small and medium sized firms to utilize their nimbleness and dexterity. It will reward firms who are small enough to fly below the regulatory radar. In summary, he does not expect a European type of socialism, but instead more like the America of the 1960’s and 1970’s. This perspective is a cause for relief for some, and disappointment for others, depending on your political bias and or economic philosophy. Adam’s Smith’s invisible hand of economics will always guide the mighty dollar to find it’s highest and best use. But there may be more detours on that route than there have been in the past.

Much has happened over the last quarter. We’ve gone from sentiment being about as low as it could possibly be, to being slightly optimistic (though admittedly skeptical). This turn in sentiment has been seen very clearly in the stock market. The S&P closed at 677 on March 9 and stands at 919 today. Although that is a huge move, it only gets us just slightly positive for the year because of the severity of the sell off in the first two months of the year. Oil and other commodities also had a very positive quarter. This wild vacillation of mood and sentiment reminds us that whatever the prevailing sentiment of the day, it will eventually change. When pessimism is at its highest, take heart. At some juncture down the road things will improve. Likewise, when optimism is seeping out of every corner of the economy, beware. The nature of the capitalism that we know and love is cyclical. We might compare investor sentiment and the economy to the weather; if you don’t like it, just stick around a while because it is bound to change eventually.

Chad P. Wilson, CFP
Foundation Bank - a division of McKenzie Banking Company

Disclosure attached: “The above is strictly informational and does not constitute any sort of recommendation. Please consult your own financial advisor for specific tax, loan, or other investment advice.”

I have a few close friends that I enjoy talking politics with and when the election in November was over we agreed that our country probably had no idea that they had just voted Socialism into office. See the President we elected was popular and all over the news and many young people were tired of the 8 years of the former President we had in office. I believe that the generation that helped elect our current Commander in Chief got exactly what they weren’t sure they didn’t want. Yet, I believe our government’s institutions have done a fine job in educating this generation into thinking big government is what they want. Be very careful what you watch or listen to on the radio. I’ve believed for a long time and it could just be my bipolar disorder, but I bet I’m right on, that our government is programming us into believing what we believe in. Socialism is only a mild reformed form of communism. Read up on it and educate yourself, be aware of what the media is propagating in its ‘news’, and be more informed with the next election. Also be aware that the Federal Senate and House of Representatives have power to say what their voters want. Make it clear to them that Socialism is not what you want for your country.

I’ll end with letting you know that I don’t use this blogspot as a forum to sway you politically. I was only sharing another man’s opinion about a very real subject. Don’t sit on your duff and not say anything about the direction our country is going in. We have rights to vote for a reason but if we continue to allow government to grow as big as it’s getting…the ones of us who warned the ones who wouldn’t see the truth starring them in face will be helping you dry your tears when you have no control over anything anymore b/c you surrendered your rights by not informing yourself of the truth.