Get the truth!

The Media and the Politicans are not telling the whole story, or are only providing a portion of the truth, and in most cases whatever you hear is partially inaccurate or a distortion of facts to suit a particular purpose or message. My goal is to tell the truth and provide facts that complete the entire story.







Friday, June 21, 2013

Eliminating Stimulus is GREAT!!

Really quite amazing that when the FED declares that at some time in the not so far off future, that they plan to reduce, and then altogether cease their current stimulus activities, our basic market reaction is to panic and run for the door. I suppose it is understandable because no one in government or in the FED can speak clearly and directly. Folks, when the FED decides to reduce or eliminate stimulus they are clearly stating to one and all the following: "We are in a recovery and no longer need stimulus". Translation for all that need translation is that this is great news. Our FED is declaring openly and publicly that we are no longer in recession and that all capitalists (and even democrats) can now enjoy the fruits of a "recovery" cycle. Recovery is good! Borrowing and stimulus is bad. Recovery is always the next phase after recession. That's the cycle folks. When the FED takes steps to inject stimulus into the economy that is a BAD thing! Stopping stimulus is a GOOD thing! The FED announcing their plan to reduce then cease stimulus to us so we can all take appropriate action is good! So why do the markets crash? Probably because in FED speak, we never really understand what is being said and when it is going to happen. Bernanke double speaks almost as bad as Greenspan did. Give it time and we will certainly not understand what Bernanke is saying. But for now, let me tell you what reducing or eliminating stimulus means...GREAT NEWS!!!!! Strap your seat belts on and get ready for a solid two or three year run (or more). That is historically what happens in "recovery's". Remember stimulus indicates bad economy. No stimulus means good economy. Everyone worth their salt makes money in a good economy. Jobs are created, consumers spend, businesses make money. Enjoy it and stop the panic.