yesterday, June 9, 2009 will be long recognized as the end of the United States of America and the beginning of the new United Socialist States of America. Even the Supreme Court as the final bulwark of democracy punted the ball and ignored the constitution. One final opportunity existed to support the constitution, to uphold the dignity of over two centuries of law. The Chrysler bailout/bankruptcy/union take over. The Government rolling over the existing statutes of contract law to make politically expidient conditions. In essence, even the Supremes decided that Barry and his gang could do what they wanted, whenever they wanted, to whomever, not withstanding contracts and existing law.
The Old America is gone. What investor or company in their right mind will invest in bonds or other debentures that (although by law) have priority over all other debt when the good Old USSA can overturn law in any fashion they wish. Payoff the unions and politically connected factions. Screw the bondholders, they are only the rich and greedy (despite the Indiana pension funds nonetheless). GM is next and this will only be worse. And still to come unknown others would will be treated this way.
Who says the recession is over. I expect it to last and last and last. Only companies and private enterprise provide real working jobs (Oh, the only segment in the US economy to gain jobs over the last 6 months has been government . . . they do not provide wealth merely redistribute it). With taxes up, regulation up, oversight up, who can foresee months in the future let alone years it takes to make investment decisions.
Oh. I can foresee several trends in the years to come. Continued economic hard times for all working (e.g. non-governmental) workers, especially for businesspersons and owners (those greedy rich ones who are barely getting by), and high and rising inflation and interest rates. Buckle down America it is going to get far rougher far sooner than anyone expected.
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