Don’t Buy Bailout Stock
If you must buy stocks, don’t reward the losers who took Federal bailout money. They will not become good companies now that they are hooked on welfare.
I am not an investor in the stock market, nor do I hold any degree in economics or business. But, judging by the present state of the economy, which has been run into the ground by degree-carrying “experts”, maybe these two non-qualifications qualify me to comment on the state of the markets.
I believe that any company who takes federal bailout money is declaring a soft bankruptcy. Acceptance of this federal money is an admission that the company is not profitable and is unable to succeed in the market place. Why would anyone put their money into such failing institutions, especially with the specter of nationalization (banks and car companies) hanging over these entities?
If you feel compelled to put your money in the stock market, find companies that are undervalued. Find a company that has not taken bailout money and that has lost value based only on the downturn of the overall market, not on whatever core values define that industry. Companies like Apple and Google, despite the distrust of the tech industries, come to mind–and does not failure of tech stocks seem insignificant now.
This is an age of mistrust. The FDIC is showing signs of weakness and the federal government has become so bloated in terms of deficit that it promises long-term economic degradation. The last tool the feds have is to print money, thereby creating the potential for hyperinflation.
We may be on the verge of a revolutionary change driven by negative economics. Such events led to the bloody French Revolution, the Russian Revolution, and the rise of Fascist states in pre-WW2 Europe. The United States, we who stabilized the world economy since the economic demise of the U.S.S.R., are tottering on the edge of the abyss. In these economic conditions, with leftists and amateurs at the helm of the ship of state, maybe the best place to invest your coin is in canned goods. You can use the title to your foreclosed home, your worthless cash, and your IRA summaries to kindle the flames of your fire in Shantytown, USA.
1 Comment
You may be singing to the choir Matt. As long as there are so many liberal minded, Obama mesmerized fans, who are living false sense of security lives, thinking no major catastrophy could ever happen to our country in their life time, we will be ripe for losing our country and our way of life to the unthinkable. The major problem with most of these people is they have never experienced hard times in their lives, such as war and depression. They only know of them and they are disallisioned in believing life will never be that hard.