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cheapbag214s · Posted: Fri 4:01, 30 Aug 2013 Post subject: In The Spirit Of Aesop And The Green

In The Spirit Of Aesop And The Green
When President Obama tossed out the one-liner about Romney-hood it got a lot of chuckles and laughs, but it was an incendiary statement designed to go beyond painting Mitt Romney as a crook; it was intended to depict all so-called rich people as thieves. This backward thinking is an insult to the country, the free market, and capitalism; it is the mantra of losers. It's designed to get Americans angry enough to grab torches and burn the homes and businesses of successful people. It's designed to promote theft, not warn against theft. This kind of language is designed to destroy dreams and dreaming.
Last week it was all about Mitt Romney and "fairy dust" of prosperity coming from the top to pollinate the masses. I guess when you are telling tall tales it's best to stick with the stuff of childhood stories. In the real world economies work one way-I actually call it trickle up. Poor people in a rush to give their limited funds to rich people are the main reason poor people remain poor. Walk through those hoods Romney is supposedly looking to loot and marvel at all the nice cars,[link widoczny dla zalogowanych], smart phones,[link widoczny dla zalogowanych], smart phone cases from stores like Louis V and sneakers made by (really) poor people making $2.00 an hour. Why would any rich person have to rob people that are in a rush to give away their money? When I walk through poor neighborhoods I look around and see a pantheon of famous and not-so-famous rich people represented:
It is so silly that rich people would have to steal from the poor when all they have to do is open their doors up earlier on Thanksgiving. And how do the poor pay for all the stuff? They pay with fairy dust, of course. The fairy dust of welfare and food stamps and so-called crazy checks trickle down from government as a reward for all that virtue and wholesome values. This is what promotes fantasy-the ability to live without putting in any elbow grease. The ability to criticize winners even when you don't even have to suit up to play the game is a luxury that only capitalism could create and sustain-for a while.
Spending it before Robin Hood Shows Up
Just consider comments from Nancy Pelosi on this fairy dust and how great it's been for America. The former House majority leader has said it a million times-the rich don't have to steal from the poor because the poor will spend up every nickel and more. She and members of the president's inner circle have given us the economic lesson on several occasions. They say why recipients fret about record food stamps when these people take the money and run . to the nearest mall. According to Pelosi and the White House, for each dollar in fairy dust from the federal government a full $1.79 is put into the economy (Department of Agriculture says the number is $1.84).
"It is the biggest bang for the buck when you do food stamps and unemployment insurance . the biggest bang for the buck." Nancy Pelosi
If you follow this theory logically the greedy rich person would actually root for a second term for this administration. Just think,[link widoczny dla zalogowanych]; that's more largesse that automatically flows straight into the pockets of the Forbes 400,[link widoczny dla zalogowanych].
Maybe that explains why there's so much Hollywood support for all this administration and fairy dust money that ends up paying for their private jets and lavish lifestyles. True patriotism isn't about beating up success but promoting it for everyone. I believe the sky is the limit for our nation,[link widoczny dla zalogowanych]. I think everyone can own their home. I think every child can have a better life than their parents,[link widoczny dla zalogowanych]. I think America can lead the world for the next century.
But, I also know if Americans accept the idea that a great success story like Mitt Romney, who created hundreds of thousands of jobs, is a form of theft then the sky will not only be the limit but could fall on our heads, and the next century will really belong to Asian entrepreneurs and American poverty pimps.
This multiplier effect is a poor excuse to mask our weak economy,[link widoczny dla zalogowanych], but in an effort to create the fa of caring,[link widoczny dla zalogowanych], an economic spin is created.
The president should talk about fairy tales coming true in the greatest country in the world and leave the story telling to Aesop. Let's focus on making green rather than the green-eyed monster.
Are Rich People Back in Malls?
Affordable luxury is acting much better including Coach (COH),[link widoczny dla zalogowanych], but I'm not sure the rich are spending. In fact, there is evidence they are saving more just like other consumers worried about higher taxes and fewer opportunities. But the rich do like to spend money, and it does fertilize large swaths of the economy. But I think the real impact on a lot of these names hit, but a would-be boycott of rich folks is the shift in buying from Europe to Asia. This week we've witnessed this with Prada and Fossil. I'm spying LuluLemon as a better domestic indicator on this topic.
The stock looks like a screaming buy based on valuation and other measures, but I'm not sure just yet because it's more of a domestic play than other "rich" people stocks. We are watching it for insight and opportunity (this is a name that typically would be featured on our Swing Strategies service because of its volatile nature).
The Market
I like the action this week, it's a lot better than a down Monday and sluggishness until we get toward the end of the week, but it's not a walk in the park. Big rallies faded into the close; both days and major indices are nearing huge resistance points. We may be at the point where conventional wisdom about further actions from the Fed and ECB aren't enough. In other words, Ben and Mario may have to pull the trigger to get over the hump. That would be a September event. The rest of this month will be all about how the market deals with problems. Bond auctions will matter too much,[link widoczny dla zalogowanych], and sound bits from key officials will be taken in and out of context.
I've pointed out over and over again about how poorly priced the market has been lately, and it's not only with depressed stocks. Last night Priceline (PCLN) was slammed after posting subpar results and guidance. I think this is a company-specific issue where a stock that climbed from $52 in October 2008 to $775 this April was priced
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