Today is the inauguration of the new President of the United States of America. The peaceful transfer of executive power is what makes America so great.
But what is the deal with all the President Obama paraphernalia? There are coins, plates, t-shirts, hats, mugs, teddy bears, camcorders, and snuggies. OK, I’m joking about the snuggies, but they advertise often. But for a country in the middle of a terrible recession some business men believe consumers will spend for their new President.
Which makes me recall something that I’ve stated about a year ago. There are terrific deals to be had right now. You can get a car for dirt cheap. You can get housing for a major discount. You can vacation for far less than you probably believe. I’ve been harping on the jobs report as the key indicator of when the economy will change for the better. My theory is that once we are on the other side of the mountain the economy will pick up fairly quickly. My main rational for this is the efficiency of personnel resources within corporate America. Adding to that is the prospect of a stimulus. *
What I forgot to include in my reasons is there is a huge cash bubble right now. The everyman is suffering because he works for corporate America, but the super rich do not. Their long term wealth is improved by making deals that are timely. The stock market gets a lot of attention as a means to prosperity, but real affluence comes from taking advantage of times like right now. A year ago I called them the real estate vultures because I thought they would buy up sets of lots. Now it goes way beyond real estate. Everything is on sale and there are plenty of people with the means to get it on the cheap.
Barak Obama may be President and folks want a piece of that, but capitalism is still king and an astute few will be aquiring kingdoms.
*Side note – there is a notion that stimulus packages don’t work
because they take affect after the tough stretch is over and facts back
this up. But this misses the point. Just declaring a stimulus gets the
economy moving. Businesses prepare for this coming infusion and this
preparation is what gets transactions happening. Without the stimulus there
isn’t a prompt to get commerce moving again. For example is shingles.
The cost of shingles should be decreasing because inventories are built
up, but they aren’t falling in price as you expect. The reason is
ingredients used in making shingles are also used to make roads. One of
the major stimulus targets is infrastructure. The supply and demand
rules are already adjusting to a stimulus that doesn’t even formally