Obama Wins: What You Need to Know

Barack Obama has been re-elected as the president of the United States.

A nail-bitingly close election, with the economy consistently being named as the top issue, has been decided.

Here are a few things to keep in mind.

What should I do with my investments?
Probably nothing different than you were before. If you were happy with your portfolio and investing style three months ago, you should be happy with it three months from now. Making investment decisions while heated about an election outcome puts you in the express lane to regrettable decisions. If you truly want to tweak your portfolio based on tonight's election, here's my advice: Do it next week. Take a few days to cool off. Think it over. Talk to others about it. A few months ago I wrote about the history of market calls based on winners of presidential elections. The vast majority are dead wrong in hindsight.

What happens next?
The odds are good that, no matter who won tonight, the economy will do much better over the next four years than it did over the past four. Housing construction and auto sales are set up for a big rebound, the boom in domestic energy production is simply staggering, and household debt payments to income are at the lowest level in almost two decades. The tailwind of those three combined shouldn't be underestimated.

Things have been looking up for a while, and President Obama's victory tonight neither solidifies nor weakens that view. Ezra Klein of The Washington Post wrote a smart article yesterday (before the election results) with the headline: "Neither Obama nor Romney will turn America into a bleak hellscape." Look past election-season hyperbole, and neither candidate was radical in any historical sense, and would have inherited an economy with the wind at its back.

The big asterisks ...
Enjoy the evening, Mr. President, because you're soon going to be facing with one of the most serious threats to the economy in years: the fiscal cliff. On Jan. 1, $607 billion in tax increases and spending cuts mandated by previous laws (some more than a decade old) go into effect. Neither Republicans nor Democrats want to see this happen in its entirety, but the two parties (surprise) can't agree on how to mitigate it. So, now begins what is likely to be weeks of vicious bickering and backroom negotiations. No one knows how this will play out. My guess: Obama will propose a fairly small deficit-reduction package extending over the next six months, and the hard decisions on long-term budget reform will be kicked down the road anew. And you thought political season was over ...

What did we learn tonight?
Legions of pundits made predictions suggesting a Mitt Romney win was a sure thing. But there are no sure things. Things change, and you have to be prepared for alternatives. Elections are a good reminder that predictions -- including those about investments and the economy -- should be done using probabilities, not certainties.

What do you think about tonight's results? Share your thoughts below.


Read/Post Comments (103) | Recommend This Article (57)

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  • Report this Comment On November 07, 2012, at 12:15 AM, kabrink wrote:

    Wish someone would tell me how to get me and my money out of this country. Welcome to the destruction of the U.S.

  • Report this Comment On November 07, 2012, at 12:16 AM, TMFNewCow wrote:

    Morgan rulez.

    -- Evan

  • Report this Comment On November 07, 2012, at 12:39 AM, shartuga wrote:

    Amen Kabrink. Caymans in December and perhaps an early expat retirement from medicine.

  • Report this Comment On November 07, 2012, at 12:43 AM, digitalroom wrote:

    the next 4 yrs will be tough, to say the least! National debt is going thru the roof at its fastest pace under this admin and from wht I heard, the food stamps recipients have doubled since 4 yrs ago from 20 mil to 40 mil. Better start investing in gold cause the mkt is abt to tank hard! I'm paying more money each yr at tax time and i'm not looking frwrd to the nxt 4!

  • Report this Comment On November 07, 2012, at 12:52 AM, SpaceVegetable wrote:

    I'm selling my winners and locking in gains at this year's tax rates. I'm also shorting the market, since I doubt I'm the only one who will be doing this. Meanwhile, I'm looking into any way of minimizing taxes and making more money to buffer against the inevitable mess Obysmal will make of the economy. Something tells me I'm going to need it.

    SO many stupid people in America....

  • Report this Comment On November 07, 2012, at 12:56 AM, koolkrissy wrote:

    What a horrible day for America! Mr. Obama's ineptness is going to put us all in the poor house. It is a travesty when our President, who has lied to the American people about terrorist activity and lied about the very attack on our embassy which killed 4 of our people in Libya, has not been impeached for his actions, but has instead been given another 4 years to destroy whatever strength we have left. May God forgive us for electing a liar! We deserve just what we are going to get.

  • Report this Comment On November 07, 2012, at 1:12 AM, RouteReflector wrote:

    Wow. These comments.

  • Report this Comment On November 07, 2012, at 1:19 AM, yonkmember wrote:

    Yes... please sell your stocks. Hopefully you can sell some nice companies that are well run (and, at least for me, dividend paying) and have nice balance sheets. Everything is going down terribly starting now.

  • Report this Comment On November 07, 2012, at 1:37 AM, SaraW946 wrote:

    The level of ignorance and lack of education in this country never ceases to amaze me! Most of the comments are embarrassing for their authors.

  • Report this Comment On November 07, 2012, at 2:01 AM, SPARTANBURG wrote:

    I've lived in the U.S. I have lived and am living in Europe. I have never seen the American people so against or so for a president. This is true for Obama and for Bush. In the '70s the president elected was 'our president", not their president. The American people, as one entity, regardless beliefs faced the future together. Such enmity that I see is unfounded and hyperbolic.

    People take this in. President Obama was born in the U.S. from a Kenyan father and a white American mom. He is Christian. He is liberal and a politician.

    You are living in the greatest country on earth. Irrespective of today's tepid economic environment, the U.S. is a cut above the rest. However, to stay there you need all the people and not their bickering and denial. Get yourselves together and thank God you were born or live in this blessed country.

  • Report this Comment On November 07, 2012, at 2:33 AM, bakbeat100 wrote:

    A wonderful night for America! I'm even more optimistic for the market and our country!

  • Report this Comment On November 07, 2012, at 2:38 AM, FreeNachos wrote:

    These comments are hilarious! Keep them coming folks, I love a good melodrama.

  • Report this Comment On November 07, 2012, at 2:50 AM, nolasue wrote:

    Most of you complaining about taxes are well off and need to quit letting the wealthy evade taxes or maybe if the rest of us did what rom did they would have to stop letting unscrupulous wealthy hide their money and pay up on taxes like the rest of us do. If the congress had not been such obstructionist against what Pres. Obama wanted we could have been better off and had a better healthcare bill. Thanks to the repub supreme court this country WASTED billions on trying to get people elected by wealthy trying to buy their control of the American people. Let's not forget both parties swept the issue of the environment aside and it most likely the most important issue to the lives of our futures and our kids futures. An inconvenient truth many still want to ignore.

  • Report this Comment On November 07, 2012, at 3:29 AM, FooLawson wrote:

    Like it mattered who we wanted for president, what about the propositions that we can actually vote for? Don't those matter more?

  • Report this Comment On November 07, 2012, at 5:10 AM, timomimo wrote:

    I am spending the next few days implementing my post election plans - In my business I am cutting about half of the company to 29 hour weeks from 40 hour weeks - this essentially , by government definition, makes them part-time, and thus I will not be affected by the new health care regulations for this group of unfortunate people - I am having my human resource group help in finding part-time employment for this ones who are cut back - they will now know what it is like having to work perhaps 12 to 16 hour days in order to maintain their standard of living - like I have all my life.

    Personally I am rolling back all of my charitable contributions about 50 percent - I am squirreling this money away in anticipation of higher taxes on dividends and capital gains, plus income taxes, plus additional taxes by our city, county amd municipal governments -50 percent of the American people, curiously the same number of those who do not pay any taxes at all, have spoken - people like myself are reigning in their monies and letting nature take its course - I have always been weary of "be careful of what you wish for" - the rich, like myself, will get poorer, and the poor will get poorer - just a continuing fall from grace by another one of the great civilizations of the world - China will take our place in the next 20 years

    I am putting my dollars into Canada for investment reasons, and I continue to shift into gold and silver - It is only a matter of time - just so you are aware I am maintaining my position in the 97th percentile in the Motley Fool CAPS - I have been there since the beginning, going on 6 years now I believe.

  • Report this Comment On November 07, 2012, at 8:07 AM, TMFOpie wrote:

    timomimo, I add you to my Caps favorites because you obviously have some very sound thinking about business and investing. And while I am more optimistic about the future of this country, especially compared to the prospects of others', I respect your small business insights.

    I am not outright political and care more about what happens with our leaders in the executive suites and board rooms than in the White House. Yet obviously I pay attention to what happens in Washington and how it may impact our investments and our investing. I am withholding my judgement to see how both sides of PA avenue deal with the fiscal cliff. I'm seeing it more as a fiscal slide, thinking that we will start to slide over it before the politicos fix it. And I think this has been priced or predicted in the market. And my hope is that this kicks us in our butts that we go through legitimate tax reform and fiscal responsibility, but we'll see. Nevertheless, I'm still bullish on the American spirit of innovation and accomplishments. We've just gotten off the rails a bit with the financial crisis and now we need to get back on track.

    Andy

    TMFOpie

  • Report this Comment On November 07, 2012, at 8:44 AM, Gracpogue wrote:

    I haven't the time or patience for all this drama. Good grief people, suck it up and move on already. It's not the end of the world,... so much drama. Maybe, the R's finally got the message that you can't buy an election,..that you get votes by demonstrating that you can serve the electorate. Maybe, those elected will now get over themselves and actually work together to get some of these problems solved. And, maybe some of you can quit blaming the government for all your woes and care of your own problems. And to the guy that wants to cut his employees to part time so you won't have to provide health insurance, Karma baby.

  • Report this Comment On November 07, 2012, at 9:09 AM, GregAK wrote:

    In a few years people will be writing books about how these 8 years under President Obama marked the decline of the United States. We have chosen the wrong socioeconomic models to emulate. We will soon be no different than our European brethren. Our country has changed, and not for the better.

  • Report this Comment On November 07, 2012, at 9:20 AM, countrygirl245 wrote:

    I would like to know where you got your information that monthly household expenditure is lower than it has been in 20 years. Ratio of debt verses income?

  • Report this Comment On November 07, 2012, at 9:23 AM, TMFMorgan wrote:
  • Report this Comment On November 07, 2012, at 10:02 AM, slpmn wrote:

    Investors - You may not like Obama, you may hate his policies, you may be terrified of the future based on what you think he will do. All fine and well.

    However, if you're going to be serious about investing, you need to detach yourself from those fears and base your analysis on hard numbers and real data. When Obama was first elected, had you sold your US stocks and moved to whatever haven you think is out there, you would have missed out on what has been an excellent market. Consider - From Obama's inauguration date in 2009 until yesterday, the SP 500 index is up 79%. From the date George W. Bush was first inaugurated to the day he left office eight years later, the SP 500 was down 39%.

    There is Fox News propaganda and there is reality. I suggest you base your investing decisions on the latter.

  • Report this Comment On November 07, 2012, at 10:03 AM, NickD wrote:

    The president doesn't really effect the stock market so I'm still happy.

  • Report this Comment On November 07, 2012, at 10:05 AM, atroff wrote:

    From a mother of four who already works 50+ hours a week to survive I am now wondering why I don't take the FREE road like so many others and let everyone else take care of me and my family... Why?? because that is what is wrong with this world. If you want food on your table and heat in your house then you find a way to earn it the way it has been done for hundreds of years. I do not need a handout nor do I believe that my earnings should pay for people who are perfectly cable or earning their own paycheck. Let's get back to respecting ourselves enough to make our own way and quit expecting everyone else to bail you out...

  • Report this Comment On November 07, 2012, at 10:19 AM, kankead wrote:

    Looking to pick up some bargains over the next few months. Also considering moving into more Gold and possibly cashing in on any winners I may have before the end of the year...unfortunately, I have already dumped about 30K this year in anticipation. Shorting some positions is possible, but I think that I am already too late.

  • Report this Comment On November 07, 2012, at 10:25 AM, mdk0611 wrote:

    slpmn - There is Fox News propaganda and then there is Chris Matthews thanking God for last weeks storm.

    Morgan makes a great point about the need to face the fiscal cliff quickly.

  • Report this Comment On November 07, 2012, at 10:26 AM, eddietheinvestor wrote:

    The market is down 245 points after the first hour of trading after the election. That tells us what we need to know.

  • Report this Comment On November 07, 2012, at 10:31 AM, slpmn wrote:

    I heard the other day that there's an agreement in place to quickly pass a bill that will kick the fiscal cliff can down the road 6 months. Washington in action!

    And the point about Matthews is well taken. I don't listen to that garbage, either. My broader point is not that Obama is good for stocks, it's that he's not bad for them.

  • Report this Comment On November 07, 2012, at 11:00 AM, Mathman6577 wrote:

    Good article. I agree w/ the "stay your course" recommendations.

  • Report this Comment On November 07, 2012, at 11:18 AM, bamasaba wrote:

    Eddie, the market being down this morning tells us what we already knew: that there are many investors who make bad investment decisions due to their emotions.

    The same folks that get depressed and sell when stocks are low are probably the ones who are selling now due to their depression over the election results.

  • Report this Comment On November 07, 2012, at 11:19 AM, flynorth64 wrote:

    Morgan Housel for president in 2016!

    Because he's consistently the only sane, reasonable, rational , intelligent voice left.

    Thanks again for another great article Morgan.

  • Report this Comment On November 07, 2012, at 11:29 AM, kthor wrote:

    this selling is just investment adjustments being made by many investors ... they were hoping for an upset in the election but many investors were the ones being upset after it ... if you are long on stocks, then perhaps you will find another entry point to buy more of whatever you have now ..

  • Report this Comment On November 07, 2012, at 11:35 AM, NoviceStocker wrote:

    Looks like a great time to buy stocks coming up, Guess some people are doing exactly what Morgan said not to do, panicking. Many, many companies are doing well and will continue to do so. I'll ride this out, as I've done well in the market the last four years.

  • Report this Comment On November 07, 2012, at 11:56 AM, aretiredperson wrote:

    Here in the Midwest (AND I DO MEAN MIDWEST, LIKE WESTERN KANSAS, NOT OHIO OR INDIANA) Mr. Obama is not much in favor.

    As a retired person facing a Governor that wants to raise property and sales taxes and reduce MedicAid and school funding from the state, a county government that wants to build a $3M dollar home for EMT and Fire and spend untold dollars on a remodeling project, and a city government that wants to spend half a million dollars on a basically open-air pavillion, and a school board that wants a $110M bond issue (to be paid back how?), the last thing I need is an inept, unable to compromise, my-way-or-the-highway POTUS.

  • Report this Comment On November 07, 2012, at 12:10 PM, LairdMike wrote:

    All the polls correctly predicted an Obama win, yet the markets were up yesterday and down today. Why?

    Clearly the psychology of the market vastly outweighs the logic of the beast. Clearly I'm kicking myself for not selling yesterday and buying like a fool today but this is not the first time I've underestimated the power of stupid people in large numbers.

    However, the sky didn't fall, the "fiscal cliff" is a government created drama, not a real physical event and can be solved, and the earth continues to rotate on its axis.

    I think I'll have a nap and look at my portfolio latter.

  • Report this Comment On November 07, 2012, at 12:12 PM, DonkeyJunk wrote:

    Oh, by all means, wealthy investors--sell your stocks! I will gladly accept them at a better value. Yes, yes, the president is wholly responsible for the stock market decline. Socialism, communism, fascism, whateverism. He's doing all of it, today. Sell, sell, sell! Please listen to the correlation your brain insists exists. We're doomed! Close your business! Run for the hills, you silly gazelles! Make room for those who don't startle so easily.

  • Report this Comment On November 07, 2012, at 12:15 PM, TMFMorgan wrote:

    <<Make room for those who don't startle so easily.>>

    Well put!

  • Report this Comment On November 07, 2012, at 12:15 PM, AGCJR wrote:

    Another great article Morgan. I do have some concerns. You state:

    "The odds are good that, no matter who won tonight, the economy will do much better over the next four years than it did over the past four. Housing construction and auto sales are set up for a big rebound, the boom in domestic energy production is simply staggering, and household debt payments to income are at the lowest level in almost two decades. The tailwind of those three combined shouldn't be underestimated."

    According to the Tax Policy Center the expiring tax cuts on Dec 31st will cause an average household tax increase of $3,500. I dont think that can bode well for the economy going forward unless those cuts are extended. Of course as Democrats accurately pointed out, it is difficult to cut taxes( or extend the tax cuts) and deal with the deficit. Unless the plan is to have a massive hike on those in the upper brackets. I dont think that would be good for the economy either. Thoughts anyone?

  • Report this Comment On November 07, 2012, at 12:22 PM, TMFCrocoStimpy wrote:

    I'm pretty sure that today's market dive is in reaction to the ECB president's remarks on seeing weakness in the foreseeable future in the European economy, and has little to do with the election results. Believe it or not, our presidential decision isn't the center of the universe.

  • Report this Comment On November 07, 2012, at 12:22 PM, kickbishopbrenna wrote:

    Heh, they laughed at ireland, they laughed at the PIIGS, they laughed at Europed, so busy laughing the tears blinded them, when they DID calm down, the shadow of the fiscal cliff loomed very very high..maybe Europe is ahead on this one, just like maybe it is in healthcare too? maybe the problem is so complex and the fiscal situation so severe that Obama has actually made the hard, but the right choices? i for one believe he has, and no, I'm not selling America..I was buying today! make no mistake though, you guys are in for the same as we're already in..5 yrs of penny pinching, loss of income, tax raises, and anger. It would have been no better with Mitt. Tough times, panic on the streets...time to buy!

  • Report this Comment On November 07, 2012, at 12:43 PM, pondee619 wrote:

    This election taught us one thing. Although people may dislike Congress, they love their Congressperson. There was not much of an upheaval in either House. The White House stayed the same and both Houses of Congress pretty much stayed the same. The American People must have enjoyed the last 4 years. They asked for it again.

  • Report this Comment On November 07, 2012, at 12:47 PM, JGBFool wrote:

    I think timomimo's response to the election will be good for his/her employees. It is free market economics-- it is in his/her best economic interest to make the changes, and it will be in the employees' best economic interest to gain skills that will enable them to work for a company that provides health care and other benefits. Otherwise, most of them would probably continue to work for a hand-to-mouth wage while receiving no health benefits-- I'm tired of paying for the emergent health care costs for people like this. Perhaps they will be able to start saving for retirement as well, which is important considering that people who are not going to retire soon are not going to be able to depend on Social Security to fund a substantial portion of their retirement needs.

    Rolling back charitable contributions is also a sensible move. Giving money to charity merely for the tax reduction is not a wise move from a financial point of view.

    As for investing in Canada-- that seems amusing, since Canada's health care system is considerably more socialized than our own will be with ObamaCare. If investments in Canada can be profitable, there's no reason to believe that Obama's election will make U.S. investments unprofitable.

  • Report this Comment On November 07, 2012, at 12:58 PM, ajschloss wrote:

    I came to this country 33 years ago with $200 in my pockets. I received a wonderful education; I started my own business in the mid-eighties and provided health insurance to all my employees because it was the right thing to do. I have prospered through republican and democrat presidents. I still believe that as a country we’ll do better when everyone has an equal chance at the pie, not just the few rich and powerful.

    Fine ways to compromise and be civil. It should not be winner takes all. I am staying here even if a republican president gets elected because there is a balance of powers in our government and I can write anything I want. Besides, I will have a wonderful retirement thanks to wonderful American companies I was lucky enough to invest in.

  • Report this Comment On November 07, 2012, at 1:02 PM, CluckChicken wrote:

    "All the polls correctly predicted an Obama win, yet the markets were up yesterday and down today. Why?"

    Buy on the rumor, sell on the news. This is the same thing that happens every 3 months with companies, we expect them to hit some target number so we buy them up and when they hit it we sell them off.

  • Report this Comment On November 07, 2012, at 1:19 PM, Mathman6577 wrote:

    Mr. Chicken: that's why it's prudent to buy and hold instead of trying to time the "news".

  • Report this Comment On November 07, 2012, at 1:27 PM, rhealth wrote:

    You all knew that half the country would be screaming bloody murder today saying the roof is falling in, selling their stocks and arming up for the zombie invasion. Lighten up! A republican win would have given us all free rainbows and gummy bears?

    Mitt romney is too busy to be president anyways, how many kids does he have?!

    Maybe they will let him run the next Olympics.

  • Report this Comment On November 07, 2012, at 1:36 PM, Darwood11 wrote:

    Morgan, good article.

    Yes, there are some interesting tailwinds. However, there are also some very serious headwinds.

    @AGCJR, I think you are right on and there will be tax increases. That is a serious headwind for families.

    These tax increases have little to do with who won this presidential election. It has everything to do with the debt. Arguing who caused what portion is irrelevant, because the President and Congress will have to deal with this. That was known last week, and it is now Obama's privilege to "walk the talk."

    My opinion was that the market was a bit overheated, and I do admit that I was tempted to take some money off the table. However, as is usual, I step back and pause. I did so in this case and decided not to make any changes.

    Anyone with a rational savings and investment plan should have an emergency fund, and if retired, a good chunk of cash or cash equivalents to ride out these ups and downs, while avoiding selling stock during lows. This election should not have altered that basic financial plan. It didn't alter mine.

    However, my concern is far more local. I live in a state that is financially irresponsible, owes tens of billions to pension plans, continues to spend more than it takes in, and seems to have absolutely no interest in changing this until borrowing becomes impossible. This means continued tax increases, an increase in certain utility prices, and a shrinking population to share that burden. That will pose a serious problem for retirement plans. More serious in my mind than the market.

  • Report this Comment On November 07, 2012, at 1:38 PM, Johny205 wrote:

    I'm moving to Colorado and investing in the marijuana market--that market is always very profitable.

  • Report this Comment On November 07, 2012, at 1:46 PM, arsraj87 wrote:

    I like Johny205'scomment .... lets sell some pot.

    I am optimistic about future ... I think next 2-3 years

    good for all us ... at least that the talk of the town here in DC area

  • Report this Comment On November 07, 2012, at 1:52 PM, Jerry2014 wrote:

    60 years ago I heard the word "dividends" spoken by a man that bought a new Ford four door sedan every year in GREEN. I had not heard the word dividend before and I asked him what it was. I was 8 years old at the time. He explained how he got them.

    I looked at that bright new car and I looked at my dad's old car in the garage. I wanted some of those dividends-whatever they were.

    By the time I graduated from college with about $1500 left in the bank fore emergencies and a College Loan of just over $500 I decided I wanted some of those dividends because I knew they paid for that New Green Ford.

    So, I researched good companies that paid dividends and held them for more than 45 years

    without selling them.

    I bought my first nice car with dividends 6 years ago. I still have the stock. This car is a 330i BMW

    which I selected because of its safety record and its ability to get good mileage from a 6 with a 6 speed stick shift.

    I agree with the Motley Fool that to focus on quality companies that are selected one at a time is the only way to invest and focus on the long haul.

    I DO NOT CARE what others do with their money but I do care about my portfolio that pays the bills.

    Historical inflation, interest rates, and other financial factors will always be with us. Go back 200 years and you will see the changes that come and the changes that go.

    Good Companies in this country, in Europe, in Asia,

    in Latin America will ultimately pay for your food, transportation, health care, education, housing, etc.

    I was lucky to be born in California which is a state of the United States. How fantastic is that? And,

    I have seen elections going back to Eisenhower and how lucky is that ?

    In conclusion, we have one President and that President is the President of US ALL. I wish him good luck, good health, and a Congress that will work with him for the benefit of the people, by the people and of the people who have voted and spoken.

    Jer

  • Report this Comment On November 07, 2012, at 2:25 PM, HeyPacketMan wrote:

    I can't wait for QE #23. Pump, pump, pump Argentina style.

    Word to Obama. We capitalists have been in your community organizer sights for far too long. I know when my economic value is not appreciated. Why you kill small businesses over the next four years, I will be actively shopping for my value investing overseas.

  • Report this Comment On November 07, 2012, at 2:46 PM, damilkman wrote:

    The next four years are going to be very hard. Obama ran as a centralist in 2008. In 2012 he ran as a populist. The problem with running as a populist is the people you demonize know it. Unfortunately the people he demonized are those most responsible for wealth creation in this country. The demographics are really stark. It pretty much came down to have-nots voted for Obama and the haves for Romney. I can't comment on the justice of fate and who did or did not get a raw deal. But in the circles of friends I keep we all came from the same demographics and had the same opportunities. Those who are well off voted for Romney. Those who are not voted for Obama.

    So regardless of who is really right there is a sharp divide. A lot of those who voted for Romney feel that Obama's proposed money transfers are unfair and those at the receiving end are undeserving. Those who voted for Obama feel that those who are well off are undeserving of their wealth and should give some of it up.

    It gets worse. Those who voted for Romney feel that capital systems generate wealth. Those who voted for Obama feel that government is most responsible for wealth creation.

    We cannot have a clear economic direction if there is a disagreement down the middle. Regardless of which direction is correct neither will happen if there is no agreement or compromise. The best we can hope for is the economy will work itself out. Unfortuantely there are no checks & balances by the FED and if they blow it there is no one to stop them.

  • Report this Comment On November 07, 2012, at 2:47 PM, Turfscape wrote:

    >>This election taught us one thing. Although people may dislike Congress, they love their Congressperson.<<

    Yup. The sad fact is that nearly all of the country actually LOVES government and LOVES spending. They all just happen to be against "the other side's" government, and "the other side's" spending.

  • Report this Comment On November 07, 2012, at 2:49 PM, Turfscape wrote:

    >>Unfortunately the people he demonized are those most responsible for wealth creation in this country. The demographics are really stark. It pretty much came down to have-nots voted for Obama and the haves for Romney.<<

    But that presumes that it's the "haves" that actually create wealth, instead of simply having the wealth. Being rich does not automatically mean you have earned your riches. Being poor does not automatically mean you don't contribute.

  • Report this Comment On November 07, 2012, at 3:06 PM, CluckChicken wrote:

    Mathman6577 - I was generalizing. We = Market and "buy on the rumor, sell on the news" I thought was a well known quote about how the market acts at times.

    Heard for months that the market had thought Obama was going to win and that the market had taken this into consideration in its valuations and the market was up recently (the rumor). Now that Obama has won (the news) it is down. The quote just kind of fit.

  • Report this Comment On November 07, 2012, at 3:26 PM, stmmmd99 wrote:

    kabrink, actually it's not difficult. Just buy a plane ticket if you want to leave. Please feel free to renounce your citizenship while you're at it. You won't be missed.

  • Report this Comment On November 07, 2012, at 3:38 PM, damilkman wrote:

    To Turfscape thus my use of my circle of friends as a case study. You are absolutely correct there will always be those born with a silver spoon in their mouth and others who will have all of fate against them. My point is in my small case study I found it interesting that those who had been wise and made education, picking a good job, and actually investing important voted for Romney. I will be more exact. Those who chose Engineering/Buisness/Techie Field voted for Obama. Those who got degees in English/Film/Social Sciences or who did not get a degree voted for Obama. We all came from middle class backgrounds and good very good schools. Yet our choices 25 years ago could predict who we vote for. Even if you looked at us when we were starving students one group spent every penny and the other group was always looking at saving. These are general trends and I am sure their are outliers to the data. I just find it shocking how start the divide is at least in my circle.

  • Report this Comment On November 07, 2012, at 4:29 PM, NotJesseL wrote:

    Does it bother anybody that Obama spent about twice the money on ads that Romney did? It does me, since so many self righteous Dems are touting the triumph of the "populace" over greedy Republican fat cats.

    Maybe it was really just money, a good strategy (spend a bunch of money 6 months ahead of the election painting Romney as out of touch) and some really bad Republican mis-steps. (47%, Women's bodies and rape, and God's will and rape).

    We deserve the government we vote in, and as long as we vote them in rather than them grabbing power like Hitler did, things are not so bad.

  • Report this Comment On November 07, 2012, at 4:32 PM, TMFMorgan wrote:
  • Report this Comment On November 07, 2012, at 4:44 PM, DCBr wrote:

    Damilkman,

    Not to create more confusion- but my circle of friends includes chemists, lawyers, engineers, entrepreneurs and a research biologist. Personally, I have a techie degree, an English degree and an MBA. When you wrote that these types voted for Obama, I agree but I think you meant Romney? Either way our points of view have to be considered anecdotal and not representative of the population as a whole.

  • Report this Comment On November 07, 2012, at 4:55 PM, JonathanGalt wrote:

    If the market had the Obama re-election baked in, someone forgot to tell the Coal industry.

  • Report this Comment On November 07, 2012, at 5:03 PM, Johny205 wrote:

    I think our 2 party system is stupid. Why can't our politicians compromise? Does it really matter if your a democrat or republican? They both have their good pionts and their bad points to them.

    There should be a seperation between church and state. I live in Minnesota and you can't buy alcohol or a vehicle on Sunday? What the hell do these things have to do with--religion obviously. If I want to buy a car on Sunday why can't I? If gay people want to get married who cares, if it is against the church call it a different name--like life partners--then they can be happy and get the tax benefits of being married and everybody could shut up about it. I would never have an abortion personally but if an unwanting person gets pregnant and isn't going to be a good parent it is probably better for society that the child isn't born.

    Why don't they just a flat tax? Corporations, capital gain, ect... just make every single tax like 25% Then it fare to all--nobody can complain because everybody pays the exact amount. If capital gains and dividends are 15% then people obviously take their salary as dividends instead of payroll, I myself do this.

    Instead of sabotaging the other party it would be nice if everybody would be willing to compromise and actually get something done.

  • Report this Comment On November 07, 2012, at 10:38 PM, retireewannabee wrote:

    Wow. I'm shocked by some of these comments.

    I am glad that there yet remain some cooler heads that see the larger picture. I'm disappointed that there is such a lack in spirit of cooperation in some of these posts. It's a little sad.

    The American public has spoken. Sometimes your team wins, sometimes the other team wins. In most sports, the losers and winners are peaceful vs so full of venom. This election season has been so nasty. I hope people let it go soon. It isn't productive.

    everyone makes a choice, and some have clearly chosen to embrace a belief in doom and gloom, and they are entitled to it. Sure, Hellscape. People that want to leave the US are free to go. Plenty of people want in, go ahead and make room for them.

    one well off guy plans to stick it to his employees so they can see what it's like to work 12-16 hours a day. lucky them, a lesson in how to know when to leave a bad boss. or be stuck working 2 shifts and have no benefits from either job.

    Be sure to hang onto all that money, Buddy, since that's what really counts in life. Your God will be so proud of you until He gets to the part about what disdain and inhumanity you show those who further your business interests. Who toiled For You to help enrich You, and you decided that they are not deserving of Good Health because you dare not share your riches with The Help.

    Karma, indeed.

    sigh

    meanwhile, the stock sell off is hilarious. does anyone really believe that American companies are suddenly all going to go bankrupt? That none of them have ever weathered any changes of any kind at any time? I don't believe that about a single one of my beloved drips.

    Too bad I've only held for 20 years - I want a new car via dividends!!! Funny it was mentioned, because that has been a plan of mine for a long while. That and being the little old lady at the grocery paying from a sock. Of dividends! Coins are heavy, I'm carrying hundred dollar bills.

    Can't see as who sits in the Oval Office changes that significantly for me, it's more up to the mgmt of the companies themselves to change and adapt to changes. There is usually long warning of corporate doom, if one is paying attention.

    But having a moderate President is hardly the end of the world. But, one can choose to believe that it is. This is the land of the Free. There is almost always Choice.

  • Report this Comment On November 08, 2012, at 3:18 AM, kyleleeh wrote:

    <<Why don't they just a flat tax? Corporations, capital gain, ect... just make every single tax like 25% Then it fare to all--nobody can complain because everybody pays the exact amount. If capital gains and dividends are 15% then people obviously take their salary as dividends instead of payroll, I myself do this. >>

    The reason this doesn't work is because globalization has caused capital to become worth much, much, more then labor. placing a 25% tax on someone who makes $9 an hour is a sure fire way to start to a socialist revolution. Frankly considering the destruction of middle class jobs from automation and outsourcing I'm shocked that people are surprised that Americans voted for a socialist president. I don't know how anyone who is not completely out of touch with human nature could look at how America Corporations have been operating for the last decade and not have foreseen a huge public backlash resulting from it. I can only only say to them the same thing I said to people who lost their $500k home in the bust..."What did you think was going to happen?"

  • Report this Comment On November 08, 2012, at 9:22 AM, Mybesteffort wrote:

    Thank you, retireewannabee. You summed it up nicely. Yesterday was such a great time to buy those stocks you may have been putting off. If you look back at our last 50 years, you will see that the stock market has always done remarkably well under a democratic administration. I am thankful to have learned of Motley Fool and joined up in time to learn their philosophy of investing. Thank you David and Tom and all of your wonderful investing partners.

  • Report this Comment On November 08, 2012, at 11:55 AM, Turfscape wrote:

    >> These are general trends and I am sure their are outliers to the data. I just find it shocking how start the divide is at least in my circle.<<

    I have no doubt that among your circle of friends you've found this pattern. But the difference between data and anecdotes is large. The more compelling piece of information you've presented is not career or money choices, but rather that this is your circle of friends. It reveals more about how we choose to interact socially than it does about wider trends regarding career/finance choices and presidential preference.

    What it really comes down to is that not everything is politics. Incredible investing opportunities happen under all types of administrations. Whether a democrat or republican candidate wins the White House, or whether one party controls Congress or the Senate, good businesses can and will flourish and provide investment opportunities for all who can and choose to participate.

  • Report this Comment On November 09, 2012, at 3:15 AM, Sunny7039 wrote:

    A "nail-bitingly close election"? What election were you talking about? The one that took place in the U.S. on Tuesday, November 6?

    Obama took Ohio and Pennsylvania. He took both Colorado and Virginia -- now that was a surprise -- and to top it off, Florida. He took New York and California by greater margins than Illinois. What alternate reality do you live in?

    It's funny that so many people who supported Romney claim to be looking for a way to pull their money out and leave, when their candidate is a man who never should have been nominated by the Republican party to run as President, and for essentially the same reason. Romney stashes a fortune offshore. Oh, this is perfectly legal, blah, blah. You're right. It is. But if you keep a fortune (which you inherited and expanded here, I might add) in some foreign country, then you shouldn't run for President. You can't have it both ways. This would be patently obvious in time of peace, but should go without saying in time of war. I cannot believe the sheer arrogance of anyone who thinks he is entitled to do both.

    It's funny. The things that for me have made Obama a grave disappointment may very well be the things you like about him (drone strikes! rah! rah!). All in all, I am so relieved to see that for once, Goldman Sachs was not able to buy the presidency, especially considering how hard they tried. Now that was a nail-biter.

  • Report this Comment On November 09, 2012, at 3:27 AM, Sunny7039 wrote:

    damilkman, I don't even believe your story about your own circle -- though if you have any kind of technical background, you must know about biased samples. The reason I don't believe it is because Silicon Valley CA and Redmond WA are full of Obama voters. Take a look at the data. What do you think those people studied? If you are being accurate, then your sample of friends is so highly skewed that it demonstrates nothing.

    Were you trying to say that the "better" people, who studied the "harder" subjects, are Republicans? That's funny. In college, I knew a whole bunch of PhD candidates in physics and mathematics who were Marxists. (I also knew lots of education majors whose entire bookshelf consisted of required reading and the Bible. They weren't "brilliant," but they were more relaxing company.)

    I never thought this meant Marxists were smarter than the rest of us . . . but now that you've made me think about it again . . . .

    ;)

  • Report this Comment On November 09, 2012, at 4:30 AM, gene132 wrote:

    I am actually pleased that Obama won. Now, the next 4 years will be terrible-recession, high unemployment, and inflation. Hopefully, the American people will learn their lesson. yes, experience is a hard school-but fools will learn in no other one.

  • Report this Comment On November 09, 2012, at 12:17 PM, OldPhilosopher wrote:

    I had thought that most Fools were intelligent, rational, people. Given the right-wing absurdities that permeate these comments, I'm starting to think I was wrong.

  • Report this Comment On November 09, 2012, at 1:02 PM, mondaypoker wrote:

    I believe it was Mrs. Thatcher who said "socialism never works because they always run out of everyone elses money."

    For the first time in my long voting history I spontaneously wept when I heard the election results. They were not tears of joy.

  • Report this Comment On November 09, 2012, at 1:45 PM, plunge72 wrote:

    After reading many of the comments here let me offer some sobering thoughts..all the while applauding the Fool's investing philosophy wholeheartedly. I defy anyone being capable of offering a solution to 16 going on 20 trillion dollars of debt hanging over our heads. If there is any solution it comes in the form of either defaulting on our debt or just devaluing it through inflation-there is no alternative. I recently read a piece that insisted that opening up our energy industry to unparalleled levels would raise enuf revenue help eliminate state debt plus dramatically lower federal deficits but if you look at the history of governments, globally, no matter how much money comes in eventually they will figure out ways to spend more than what comes in. My own take is to protect myself through any and all methods of debt defense investments on a gradually ever increasing scale over the next 5-10 years. It won't happen over nite, but , if you think it isn't inevitable you are dreaming.

  • Report this Comment On November 09, 2012, at 1:50 PM, u102 wrote:

    What to expect, while living in a war zone, called planet earth! Is there any Hope?

    Consider the Times too!

    Apostle Peter asks Yeshua

    Matthew 19:27 Then answered Peter and said unto him, Behold, we have forsaken all, and followed thee; what shall we have therefore?

    28 And Jesus said unto them, Verily I say unto you, That ye which have followed me, in the regeneration when the Son of man shall sit in the throne of his glory, ye also shall sit upon twelve thrones, judging the twelve tribes of Israel.

    29 And every one that hath forsaken houses, or brethren, or sisters, or father, or mother, or wife, or children, or lands, for my name's sake, shall receive an hundredfold, and shall inherit everlasting life.

    30 But many that are first shall be last; and the last shall be first.

    Now for Americans you can get an IRS Write Off, for greater investment opportunities.

  • Report this Comment On November 09, 2012, at 1:53 PM, u102 wrote:

    What to Expect Backed Up from a blank piece of paper!

    YHEL AF Liberator/Terminator

    http://truth-revealed.name

  • Report this Comment On November 09, 2012, at 2:21 PM, fooljtv wrote:

    Its a new world and our fellow Republicans have to learn how to live with it. There are 7 billion people on this planet seeking a way of living, justice, peace, and an environment worth living in. All our economic decisions should take into account the goals and desire of our worldly neighbors. Obama just happens to get the vision more closely than the Koch Brothers, Donald Trump, and Karl Rove. America will be better off making political decisions that benefit all of the people, not just the top 5%. I trust that John Boehner, Harry Reid, and Barrack Obama can reach intelligent solutions in the near future that will not jeopardize not only the American dream, but that of all mankind.....

    PS: Just think of all the financial help that was wasted on production of political attack ads; it could have been used toward education and help of the unfortunate in our midst....

  • Report this Comment On November 09, 2012, at 2:43 PM, desengret wrote:

    The attitude of entitlement that has always alarmed me is at the top not the bottom. I am a retired middle class design engineer. Our planet supplys we who scramble around on its surface with the nessessities of life. When distortions occure that do not help the greatest number achieve this they should be controled in some manner.The unfettered money system is the most obvious indicator of entitlment at the top. The only true wealth comes from our planet. Who owns our earth? I'd say we all do. When Mitt was buying, restructing, selling companies after he pulled out millions or perhaps billions.Overall did more people wind up with a better life after Mitt or a worse standard of life? I for one will not research the question. I am pretty shure his attitude of entitlement at the top cost him the election.

  • Report this Comment On November 09, 2012, at 2:52 PM, gdmcfool wrote:

    Without rehashing the election, there are known changes that will impact investments almost immediately. Tax increases on dividends, capital gains, income above $200-250K, additional 3.8% tax on investment income forr those in the $200-250K brackets are already in the works. I take Mr. Obama at his word that he will veto any "fiscal cliff" solution that doesn't comply with those increases. In addition, there is no reason to believe that the Federal Government will promote policies that might increase GDP growth. In fact, it will be surprising if the flurry of regulations do not constrain energy production. For the author to assert that none of these factors should cause portfolios to be altered is questionable at best.

  • Report this Comment On November 09, 2012, at 3:00 PM, Sunny7039 wrote:

    What I find remarkable is that even at the very top, there is profound disagreement concerning monetary and fiscal policy. By "the very top," I mean the very best economists.

    When I found these three videos on the Columbia University Law School website, I was truly surprised. After the initial euphoria, reality set in. If the best disagree to this extent, and if the policies we do end up pursuing are wrong -- which they easily could be, since a lack of consensus usually means that somebody has this wrong -- it will not be pretty.

    http://www.modernmoneyandpublicpurpose.com/archives.html

  • Report this Comment On November 09, 2012, at 3:06 PM, BradleyC100 wrote:

    I am retired and on a fixed income, I have been around for a while; here is my 2 cents.

    It does not matter which party wins an election, neither has the will to tackle the problems our country faces.

    The fiscal cliff will simply be moved out to another date.

    The fed will continue to devalue our money.

    Health care will continue to cost more.

    SS will get the normal lip service.

    Energy indépendance never happen.

    Gas prices will continue to rise.

    The fix everyone needs to share in the pain

    required to make this country great. Term limits, Balance the budget, flat tax.

    Start with 10% across the board cut for all programs, not in the growth but in real dollars. If congress wants to spend they need to tax at the rate needed to pay for the program. Sunset every program to insure that it is reviewed is valid. This would also keep them busy and slow the growth of new pork.

    Not easy to except but if we don't start now the cuts that face this nation in the future will be much more painful.

    Just some thoughts.

  • Report this Comment On November 09, 2012, at 4:46 PM, StanFeingold wrote:

    I think Romney may have lost because he picked Ryan ... a little too far to the right and a couple of breaths away from the presidency. If the Republicans learn anything from this, it must be that they must stay near the middle of political spectrum ... not too far right.

  • Report this Comment On November 09, 2012, at 6:08 PM, timomimo wrote:

    desengret - you wrote "... When Mitt was buying, restructing, selling companies after he pulled out millions or perhaps billions.Overall did more people wind up with a better life after Mitt or a worse standard of life? I for one will not research the question. I am pretty shure his attitude of entitlement at the top cost him the election..."

    Regarding Bain, the article does not say how much he personally made, but some companies had gains and some were losses, some employees lost their jobs and some kept them

    http://www.snopes.com/politics/romney/realmitt.asp

    Here is what SNOPES says about Bain

    "The long-term effectiveness (or lack thereof) of the so-called "Bain Way" remains a subject of debate. In January 2012, the Wall Street Journal published an analysis of the business investments made by Bain Capital during Mitt Romney's tenure there and reported the following:

    The Wall Street Journal, aiming for a comprehensive assessment, examined <NOBR>77 businesses > Bain invested in while Mr. Romneyled the firm from its 1984 start until early 1999, to see how they fared during Bain's involvement and shortly afterward.

    Among the findings: 22% either filed for bankruptcy reorganization or closed their doors by the end of the eighth year after Bain first invested, sometimes with substantial job losses. An additional 8% ran into so much trouble that all of the money Bain invested was lost.

    Another finding was that Bain produced stellar returns for its investors &mdash; yet the bulk of these came from just a small number of its investments. Ten deals produced more than 70% of the dollar gains.

    Some of those companies, too, later ran into trouble. Of the businesseson which Bain investors scored their biggest gains, four later landed in bankruptcy court.

    (Full details of the Wall Street Journal's analysis can be viewed here).

    http://online.wsj.com/article/SB1000142405297020433130457714...

  • Report this Comment On November 09, 2012, at 7:00 PM, mikiheart wrote:

    So much melodrama. Be part of the solution and offer something positive. If you know how, go out and create some jobs. One of the best things you can do is go to the local library and volunteer to teach someone to ready. Geesh! Don't you have lives? with some semblance of joy? America belongs to us... not Mitt Romney, not Barack Obama. Offer some solutions. We the people could reduce the debt ourselves if we really really wanted to. 1 nickle a day from everyone in the country would be a good start.

  • Report this Comment On November 09, 2012, at 7:02 PM, desengret wrote:

    timomimo- Thankyou for the articals on bain capitol. I appreciate your time.

  • Report this Comment On November 09, 2012, at 7:22 PM, IvalW wrote:

    The investment perspective will probably not change much until the government makes some decisions regarding tax policy and spending policy. My concern for the future of the country is how campaigns are run with extensive negativism that pits some segments of our society against other segments. It is my belief our future will continue to dim until a real leader emerges who can change the attitudes about government and the role of government in our lives. President John Kennedy's philosophy and words are being turned upside down. That was the first election that I was eligible to vote.

  • Report this Comment On November 09, 2012, at 7:25 PM, lifeafter82 wrote:

    Where do you live??? “Nail biting close election”??????? over 300 and counting!

    Well, I wrote my humble opinion here a few days before the election, what was based on common sense.

    I know the truth hurt, but facts are facts.

    I am on Fools mailing list, and signed up for this blog, hopping that will learn from smarter people opinion here.

    Well, so far what I noticed that people like to talk, but do not listen. I know it is hard to admit when you are wrong, and it takes a strong character, to acknowledge that. I am still searching the blogs here to find one.

  • Report this Comment On November 10, 2012, at 10:03 AM, yosoykarlos wrote:

    Here is my belated comment on Obama's victory. It's the economy, stupid. How does that compute? The consumer confidence index has been going up. Regardless of what people were telling the pollsters, they were registering that the economy was indeed on the mend. From there, it should have been clear that Obama's reelection was a foregone conclusion. After all, don't change horses in the middle of the stream. (I, by the way, did not see either candidate as representing my interests, and hence, abstained from voting.

  • Report this Comment On November 10, 2012, at 4:09 PM, timomimo wrote:

    plunge72 wrote: "... I defy anyone being capable of offering a solution to 16 going on 20 trillion dollars of debt hanging over our heads. If there is any solution it comes in the form of either defaulting on our debt or just devaluing it through inflation-there is no alternative...."

    I thought about this for a while.I would love to see the Fool take on this challenge. I call it QI 13 (Quantitative Investing in 2013), in some ways similar to the recent Quantitative Easing programs.

    Here is the scenerio. The Federal Reserve creates $12 trillion of new interest free money and puts the Fool community in charge of investing it. The goal is to reduce the public debt from the current $16 trillion to 0 in 20 years, and then repaying the principal from the original $12 trillion.

    This means we must use the $12 trillion to produce $800 billion a year for 20 years - an uncompounded average annual return of 6.67%. If the Fed balks and only will create $6 trillion, then of course we would need to double the annual return.

    All of this assumes a lot about current revenues and spending,that the national debt would not continue to grow and that we could generate budget surpluses, so I will leave those details to the accounting experts.

    Are we up to it?

  • Report this Comment On November 10, 2012, at 7:58 PM, redrockraven wrote:

    For those of you who can't stand the outcome of the election, you are free to head out of the country as quickly as possible. Maybe you have a brighter future in Somalia.

    My only concern with the election is what will happen to the markets while the congress continues to procrastinate on addressing the so called fiscal cliff.

  • Report this Comment On November 10, 2012, at 8:13 PM, Poppypbr wrote:

    Pretend its 1938. Great Depression not over. War breaking out in Europe. Bleeding Heart President has managed to get expensive Socialistic programs of Social Security, Unemployment Compensation, and Public Works (W.E.P.) passed under the New deal. And you thought things are bad today? Obama will be GOOD for the economy and the economy will be ROARING if conservatives keep their hands off the wheel. Market may do head and shoulders in the next year, then rocket to a BOOM! by 2020. I'm leveraging my house for $110,000 at 2.85%/30yrs and investing ALL of it into Roth IRA's.You can sit by and watch while I tack into the prevailing teary-eyed wind. "You're like a baby, don't know what to do. You have a strong heart, but stupid, like a baby."

  • Report this Comment On November 10, 2012, at 8:18 PM, IAMRC wrote:

    I HAVE NEVER HEARD SO MANY FOOLS CRYING AT ONE TIME. OBAMA WAS ELECTED BECAUSE MOST PEOPLE ARE HAPPY WITH THE JOB HE IS DOING. IN A DEMOCRACY, THE MOST PEOPLE COUNT.

    ONE FOOL SAID HE IS MOVING HIS MONEY TO CANADA, IF HE WAS SMART, HE WOULD MOVE HIMSELF THERE AS WELL. GUESS WHAT, HE WOULD HAVE FREE HEALTH CARE. BUT, HE WOULD HAVE TO PAY REAL TAXES TO PAY FOR IT. NO FREE LUNCH. THE MARKET FOR THE LAST FOUR YEARS HAS BEEN GOOD FOR ME, AND I AM NOT CHANGING WHAT I AM DOING. MAKING MONEY IS NOT ANATHEMA.

  • Report this Comment On November 10, 2012, at 8:21 PM, IAMRC wrote:

    TO DEMOCRATS OR ANY US.

  • Report this Comment On November 10, 2012, at 8:21 PM, Poppypbr wrote:

    I should have added above "Making lots of noise". I'm at +14% for the year over an average of 15 funds and the same for 2011. What's the beef???

  • Report this Comment On November 10, 2012, at 8:27 PM, Poppypbr wrote:

    American Dollar is medium of exchange for World Commerce. As population of the world and world economic activity increases, the supply of American Dollars has to increase as well "SO THERE IS SUFFICIENT LIQUIDITY TO FACILITATE TRADE"

    The Founding Fathers were brilliant men. Have faith in their creation and do not be taken in by political rhetoric espoused by men without vision. My 2 cents.

  • Report this Comment On November 10, 2012, at 8:43 PM, Poppypbr wrote:

    Re: Pundits and the Republican "Surprise"

    Too many white suburban voters on their files for Republicans to accurately measure the electorate of the Estados Unidos and Umoja Wa Mataifa.

  • Report this Comment On November 10, 2012, at 8:49 PM, philkek wrote:

    Thanks fools, for many thoughts. Your comments here make me think there are GOOD investing brains still at work in America.

    Will your brains-at-work should help create CHANGES needed to RE-BALANCE the American BUDGET? Wise fools can see this presidential election year as a great buying opportunity.

    Great stocks at discount prices. I hope I'm one of YOU wise fools. I hear being rich is better than being poor.

    Better Business Bureau advises all fools to investigate before you invest. Fool on for profits.

    I believe the US government uses TOO MANY credit cards.

  • Report this Comment On November 10, 2012, at 8:50 PM, marei wrote:

    Look like God decided that the Romneys weren't fit to rule the free world after all!!--Tom Reilly

  • Report this Comment On November 11, 2012, at 10:26 AM, janrussak wrote:

    Reading many of these comments is like reading comedy. Seriously? Perhaps you would have liked a McCain Presidency that allowed GM & Chrysler to go out, followed by many of their supporting companies, as well as the big banks? And the economy would have been better for that? Perhaps a Calvin Coolidge like 4 year second Great Depression would have been preferable? And these fears of doom because a sitting President has been REELECTED? Despite the hard work of the Republican House and the filibustering Republicans in the Senate the economy recovered enough to make it a non-issue. People were panic selling when nothing changed? This is comedy, people. So - how many of you started buying in mid-March 2009? Or did you all miss that opportunity, too?

  • Report this Comment On November 11, 2012, at 10:44 AM, GordonsGecko wrote:

    « The Ultimate TSA TakedownHow Many Bureaucrats Does It Take to Screw in a Light Bulb? »

    The Tax System Explained in Beer

    March 18, 2012 by Dan Mitchell

    In my explanations of the Laffer Curve, I’ve shown evidence that high tax rates discourage productive behavior and boost the underground economy.

    And if higher tax rates are sufficiently onerous, the resulting reductions in taxable income can completely offset the revenue-generating impact of higher tax rates. Indeed, this is what’s already happened with the “Snooki tax.”

    And the same thing happens in reverse. If lower tax rates lead to a big enough increase in taxable income, the government actually collects more revenue – which is exactly what happened when the top tax rate was lowered in the 1980s.

    I’ve also tried to explain, shifting from economics to philosophy, that confiscatory tax rates are unfair and immoral. And I’m glad to see that most Americans agree, with 75 percent of all people saying that nobody should ever face a tax rate of more than 30 percent.

    Notwithstanding that polling data, though, I fear that many people don’t really understand the economics of taxation. So I’m happy to share this little story that periodically winds up in my inbox.

    ===============================================

    Suppose that every day, ten men go out for beer and the bill for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this…

    The first four men (the poorest) would pay nothing

    The fifth would pay $1

    The sixth would pay $3

    The seventh would pay $7

    The eighth would pay $12

    The ninth would pay $18

    The tenth man (the richest) would pay $59

    So, that’s what they decided to do.

    The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve ball.

    “Since you are all such good customers,” he said, “I’m going to reduce the cost of your daily beer by $20″. Drinks for the ten men would now cost just $80.

    The group still wanted to pay their bill the way we pay our taxes. So the first four men were unaffected. They would still drink for free. But what about the other six men ? How could they divide the $20 windfall so that everyone would get his fair share?

    The bar owner suggested that it would be fair to reduce each man’s bill by a higher percentage the poorer he was, to follow the principle of the tax system they had been using, and he proceeded to work out the amounts he suggested that each should now pay.

    And so the fifth man, like the first four, now paid nothing (100% saving).

    The sixth now paid $2 instead of $3 (33% saving).

    The seventh now paid $5 instead of $7 (28% saving).

    The eighth now paid $9 instead of $12 (25% saving).

    The ninth now paid $14 instead of $18 (22% saving).

    The tenth now paid $49 instead of $59 (16% saving).

    Each of the six was better off than before. And the first four continued to drink for free. But, once outside the bar, the men began to compare their savings.

    “I only got a dollar out of the $20 saving,” declared the sixth man. He pointed to the tenth man,”but he got $10!”

    “Yeah, that’s right,” exclaimed the fifth man. “I only saved a dollar too. It’s unfair that he got ten times more benefit than me!”

    “That’s true!” shouted the seventh man. “Why should he get $10 back, when I got only $2? The wealthy get all the breaks!”

    “Wait a minute,” yelled the first four men in unison, “we didn’t get anything at all. This new tax system exploits the poor!”

    The nine men surrounded the tenth and beat him up.

    The next night the tenth man didn’t show up for drinks so the nine sat down and had their beers without him. But when it came time to pay the bill, they discovered something important. They didn’t have enough money between all of them for even half of the bill!

    And that, boys and girls, journalists and government ministers, is how our tax system works. The people who already pay the highest taxes will naturally get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start drinking overseas, where the atmosphere is somewhat friendlier.

  • Report this Comment On November 11, 2012, at 1:39 PM, pwlitt wrote:

    I would have never thought that the Welfare class could out vote the working class in america.

  • Report this Comment On November 11, 2012, at 2:10 PM, cmeinc73 wrote:

    Retireewannabe wrote this response to timomimo's post:

    This election season has been so nasty. I hope people let it go soon. It isn't productive..

    But then goes on to say:

    Be sure to hang onto all that money, Buddy, since that's what really counts in life. Your God will be so proud of you until He gets to the part about what disdain and inhumanity you show those who further your business interests

    RW you should take your own advice; nothing in that comment was productive.

  • Report this Comment On November 11, 2012, at 5:58 PM, Sunny7039 wrote:

    GordonsGecko, let's not have taxes at all!

    Chinese peasants can pay for our military, and our Veterans' Administration, and our policing of the global shipping lanes and air traffic, and our court system, where business goes to make sure it can enforce all the legally binding contracts it makes and all the intellectual property rights it owns. Among other things.

    I know what you mean about offshoring. Maybe anybody who isn't "smart enough" to stash their fortune offshore isn't "smart enough" to be President.

    Your little beer house brawl vignette forgot the part about the security guard, who will step right in to stop the violence.

    Er, but somebody has to pay the guy, . . . right?

    (And do they have better security guards in these other bars that you speak of? Are you sure about that?)

  • Report this Comment On November 11, 2012, at 11:58 PM, timomimo wrote:

    Years ago I was given a small booklet by a very wise man named Albert. The title of the booklet was “A Message to Garcia.” When Albert gave me the booklet, he told me that J.C. Penney, the founder of JC Penney company, at one time gave a copy of the booklet to everyone he hired. I never checked if he did or didn’t. Albert strongly encouraged me to read it over and over to fully understand its meaning. Some of the writing is not kind, but reality sometimes is not kind.

    I ran into the text of this booklet today, quite by accident, in the Bob Bullock Archive at Baylor University. Many of you have probably already read it. It will take 5 minutes or so to read it, and I think some of the book’s insights are still relevant today. It was written in 1899. I was going to copy and paste it here, but for copyright reasons I provide you with a link to one place it can be found.

    http://www.baylor.edu/lib/poage/bullock/index.php?id=55461

  • Report this Comment On November 12, 2012, at 4:16 PM, in2thetruth wrote:

    If you read the US Constitution and investigate what the Government is doing/has done then and only then will most of the citizens realize that our Government is overstepping the confines framed within it's own governing document. While a Federal governing body is required to carry out international trade, policies, provide equal access among the States and provide for the general welfare of an American citizen, it is not required nor needed to dictate what happens in our everyday lives.

    The Goverment has set boundries in which it can operate and be effective, however, it has grown so large that it is crushing the very people it was intended to serve. I for one wish only to have a Government as the Constitution framed. And for this I have been tagged a "radical". Really? A radical for wanting our Government to uphold the federal laws, not to deny my rights as afforded to me in the Constitution, and to uphold the founding principles that made this Nation so great?

    I did learn something from this election; there are now womens votes, poor votes, black votes, senior votes, young votes, latino votes, rich votes, youth votes, religious votes, gay votes, and the one that offends me the most "you did not vote for Obama because he is a black man".

    My fear is that we have all lost sight of what is the most important vote of all, the "individual".

  • Report this Comment On November 12, 2012, at 5:52 PM, puzzledcanadian wrote:

    Man there is a lot of ignorance and misinformation among your readership -- and those most ignorant and most misinformed are most likely to attribute these qualities to others.

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