Freaked About Interest Rates? Freak on This $VIX, VXX, $USDCAD

Stock market will tumble when quantitative easing slows or stops. Obama may want to let the Republicans do it so they can screw the big money supporters. Well maybe. So stay away from interest sensitive investments like bonds. as rates rise bonds tank. easy right.

Stay in  US Dollars because other economies will be suspect. Right well mostly. take a look at the Canucks to the north. They are dangerously close to balancing the federal budget and starting a lot of personal tax cuts. they will probably increase their version of social security but have it funded properly. they have real healthcare without stupid web sites and pay for through general taxation.

The Canadian dollar will do remarkably well because Uncle Sam still needs to borrow and increasingly high interest rates will be needed.

So if you have a few bucks take a look at Canadian denominated assets or real estate or just cash for now. Then when the tables turn so do you.

George Gutowski writes from a Caveat Emptor Perspective.

Obamacare Insults Social Media. Facebook and Twitter Can Solve This $FB, $TWTR #SEO #Obamacare

Obamacare web site is seriously deficient. Most Democrats not even denying this. President Obama who is one of the most savvy social media politicians missed the power of social media and allowed the bureaucrats to build something that does not work.

The trick is to make connections. Duh. This is social medias core competency. Let Facebook (Nasdaq:FB) and Twitter (NYSE:TWTR) sort it out.

It will be cheaper and start working sooner. As soon as politicians make rules that are bureaucracy friendly any idea will fail.

George Gutowski writes from a caveat emptor perspective.

Obama Manipulates Stock Markets with Funky Healthcare Fiddle. Be Afraid $SPY $VIX $XLF

Politicians will tell you the Democratic victory for Obamacare was hard-fought and historic. Economists will tell you Obamacare is going to be expensive. All healthcare is expensive. Businessmen will tell you that Obamacare was stillborn and unworkable. Helicopter Bernanke says they will taper off with quantitative easing. No where else to go with that one.

Obama knows the economy is still fragile. He needs a new stimulus or something that looks like a stimulus. A lot of businesses are staring at significant new bills for Obamacare. Mid term elections coming up. Obama would prefer to develop coattails in 2014 and the all important 2016. Economy needs to improve because after six to seven years its his economy. Excuses have run out.

So you gamble with one of your political assets and create the charade of delay. Probably saved a bunch of jobs. Because a lot of companies were suddenly going to have less than 50 people. Large companies were going to cut costs which means lower salaries and fewer jobs.

If you’re a hockey fan, and perhaps Obama watches the storied Chicago Black Hawks, you ice the puck and hope to dig it out of the corners later. What he fails to realize is: “markets hate uncertainty.” This just creates uncertainty.

Watch the nuanced spin that it will help the economy. With a tsunami of increasing health costs there is a political liability that was not calculated properly. Advantage to global companies with off shore work forces or very small head counts.

In the meantime

  1. Don’t smoke.
  2. Don’t abuse drugs or alcohol.
  3. Walk 10,000 paces a day.
  4. Reduce intake of carbs, sugar and salt.
  5. Have sex as frequently as possible.
  6. Avoid investments which lose money. Too stressful.

George Gutowski writes from a caveat emptor perspective. Working hard on point six.

#FiscalCliff bring it on. Tired of Tax Walls


Tax (Photo credit: 401(K) 2012)

Today I was in a rush so I bought a foot long breakfast Sub. Paid about a buck in taxes. Been paying a lot of taxes every time I do something convenient.

Fiscal Cliff bring it on.

I’m tired of hitting the tax wall every time I want or need something that I can pay for.

George Gutowski writes from a caveat emptor perspective. He was munching on the sub as he wrote this blog. Follow him on twitter@financialskepti

#occupywallst is Congress’ Bastard Love Child #obama #stocks

"View in Wall Street from Corner of Broad...

Image via Wikipedia

Obama is three years into his four-year lease on the White House. Next year he’ll be busy running for office again. But after three years of his leadership why do we have the “Occupy Wall Street” thing. No one is happy with their elected officials. But the Occupy Wall Street” thing is a feed back comment. The people are not happy and are beginning to despair. The movement is like an unwanted lovechild spawned in recent political rhetoric from both sides. 

BTW trashing a park and marching across a bridge is not the solution.

#Obama American torture #Teaparty trap #macro #micro #taxes #infrastructure $stocks

Barack Obama - Caricature

Image by DonkeyHotey via Flickr

President Obama tortured the American public with another infrastructure pipe dream last night. I woke up this morning and the unemployment rate was still 9.1%. No line ups anywhere for new jobs. Oh too early give it some time.

The speech is an enormous political trap for Republicans and Tea Party stalwarts. Obama is blackmailing the political process. If the bill goes nowhere or is changed substantially he can claim hey it’s not my fault and then point a finger. He needs to point a finger. Because in about  14 months from now he knows the economy will not improve enough and he needs some political camouflage.

Disclosure: George Gutowski writes from a caveat emptor perspective. My perspective says there are a lot of caveats for everyone. Left and Right.

Buffett and Obama insider trading or just politics. $BRK.A $BRK.B #buffett #obama #SEC #corpgov

President Barack Obama and Warren Buffett in t...

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Warren Buffett is clearly in the Democratic Obama camp. You can presume he gladly offers the President his advice on economic and business affairs. Just like a good teacher who can tell by the questions a student asks Buffett will be able to determine what Obama’s inclinations are. That’s a hell of an insider scoop that probably no one else has.

But then again when you are the smartest guy in the room you have an advantage.

I doubt if the SEC can even start to investigate this one.

Disclosure: George Gutowski writes from a caveat emptor perspective. I do not speak with either President Obama or Warren  Buffett. I do not hold positions in stocks mentioned in this post. I do not plan to initiate new positions within the next 72 hours.