BY PANOS PREVEDOUROS PHD – I am sure that my Obama loving friends celebrated well last night. I’m glad they did because it’s pretty much downhill from here.  This market reaction is only a tiny harbinger of what’s to come.

Nothing personal with the President, but as Margaret Thatcher put it, Socialism lasts only as long as other people’s money last. The math is both simple and brutal.

I hope you don’t think that only the top 1% of income earners lost a bit of wealth overnight.  Government and private company retirement funds, individual 401Ks, university endowments and most other savings and investments of the remaining 99% are in the stock market. (And in US bonds and T-bills that pay less than inflation so people’s savings diminish with time while pension under-funding is growing.)

Of course Californians voted for added taxation to themselves. The outcome of this will be none other than … Ross Perot’s “giant sucking sound…”

These days the world is running at the speed of the Internet. Trends develop and bubbles burst quickly. So all of us under 75 stand a good chance in finding what Greece is all about where, among other things, unemployment for people under 25 years old is at about 50%.

Celebration will quickly turn into sequestration. The Treasury has quietly informed the President that the debt limit will be reached before the year is out.

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3 COMMENTS

  1. Stick to transportation and civil engineering, Panos. The views expressed in this submission are simplistic, sophomoric, and utterly uninformed.

    • I was set up to interview and possibly be hired by a few different non-corporate businesses, but they made it clear that they would wait until the election to proceed. Well I found out soon after Obama was re-elected, they were sorry but they are under a hiring freeze. As a recent college graduate in the chemical field, my prospects are already slim as it is… now I fear that these next 4 years are going to be nothing but a brutal struggle.

      And 'economist', there is nothing uninformed about this. Obama has made it clear he plans to go after the rich and businesses to increase federal funding, to 'pay their fair share'. The uncertainty of these past 4 years has already stunted economic growth, and actions to increase tax rates on investors and businesses will have a dramatic impact on the economy. Already plenty of places are trying to shift all their hourly employees to part time to avoid Obamacare expenses.

  2. I'm guessing you're not much of an engineer either, eh? Clearly your English is as bad as "reel 'muricans." You wrote socialism–I would submit that you should lose tenure for such patent idiocy.

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