April Showers, Bring May Flowers...
The Health Care Bill was passed by the House last night. Nancy Pelosi praised the legislation as patriotic. She admonished the Senate to pass the changes, and from the sound of the shills in the MSM, they will. Obama is itching to sign it.
Nancy tells us that the bill has a lot of problems, but once passed, they can then work on legislation to fix those problems.
It's oft said, "We don't have time to do it right, but we have time to do it twice." And in every place where that was the rule, we ended up doing it thrice... We never got around to doing it right.
This bill will be no different. If they try to fix, it, they'll just make it more onerous.
This bill, when passed, will drive up the personal bankruptcy rate and the foreclosure rate. Why? Because it guarantees that everyone will have insurance by demanding that they buy it. Never mind that they probably can't afford it. If you can't afford it, the IRS will come after you. That likely means that your wages will be garnished, and you'll find yourself unable to pay your bills and mortgage.
The insurance execs need more palatial summer homes and yachts. You and I are going to buy those for them. It's our patriotic duty. At least that's what Nancy Pelosi seems to be telling us.
But don't worry, this really will create jobs. The IRS will have to expand in order to work as a law enforcement agency, to make your that we pay our Insurance Taxes. These collections agents will make much larger salaries than folks in the private industry. Further, the taxpayers will pay their Insurance Taxes for them.
I myself, am very worried about how much I will have to pay in Insurance Taxes. Already my co-pays are going up. I assume they will continue rising forever. In the mean time, business is slow and I'm earning less money than i did last year.
I'm on a private plan with my employer, but I can't afford to put my wife on the plan. She has a pre-existing condition. If we put her on the plan, then we wouldn't have money for her medication and medical bills. There is a very real concern that she would be hospitalized or die, before the time period for the pre-existing period ran out.
If we have to pay Insurance Taxes, I worry that we will be unable to buy her medication.
That does this have to do with April Showers and May Flowers? Well, I'm still calling for a crisis in May. This new Insurance Tax that is going to be enacted, will be another straw on the camel's back. but we still have cresting crude prices, record bankruptcies, and unemployment numbers that are showing no signs of subsiding.
In May, we'll be in the middle of the second quarter. That will be plenty of time for the first quarter's numbers to be corrected and for the euphoria of the government's fibs to wear off.
I'm hesitant to predict a market crash. This isn't because I think the market is healthy, but because I think it's effectively doing a 'Weekend at Bernies'. I do not believe that small investors or institutional funds are driving it anymore. Instead i believe that the market values are driven by the money presses. The taxpayer is borrowing monies, that are being funneled into Wall Street to enrich the wealthy and keep the markets afloat.
So long as Wall Street remains the world's fattest federal welfare whore, the markets may well stay up. We could well see a dip and profit taking, but I expect a quick rebound when this occurs. After all, the Federal Reserve can conjure seemingly infinite quantities of money out of thin air through their magical fiscal powers. There's no reason why they couldn't inject trillions of dollars into the markets to keep them afloat. After all, you and I have good credit and we're always happy to pick up the bill. Right?
So what kind of crisis do I expect? I expect an increase in the number of failing banks. I expect a series of large layoffs from major manufacturing firms. I expect the airline industry to experience a crisis. I expect more emergency sessions in congress and bailout talks. In general, I expect a lot of things to begin breaking over a short time span.
Then again, remember, I'm mainly basing these ideas on the fact that world oil production is in decline. World energy production is also likely in decline. Because of this, there is irresistible pressure, forcing our civilization to power down a notch. No economic stimulus can stop the forces of nature. Because of this, it's my opinion that the world economy will crack a bit this coming quarter.
I could well be wrong. We could in fact go several more quarters without hitting a criticality. Each quarter we go will see the pressure increase. Each quarter without a correction increases the damage we'll experience when this breaks.
We don't have much longer to wait, to see how this turns out.
And remember, I'm just some guy on the internet. I'm not your stock broker. I'm not accredited by any institution to give financial advice. The complete extent of my advice is to reduce your debts if you can and take up gardening. It relieves stress and provides you with tasty food to supplement your diet with.