Get ready for another crash...the next leg down of this historic
correction...the next kick in the pants...the next moral lesson."
..........................................
From Congressman Ron Paul, in his "Texas Straight Talk" column on his House of
Representatives website on July 27th:
"Free people should be left alone to follow their conscience and determine their
own lifestyle as long as they do not interfere with other people doing the same.
If morality is dictated by government, morality will change with every election.
Even if you agree with the morality of the current politicians and think their
ideas should be advanced, someday different people will inherit that power and
use it for their own agendas. The wisdom of the constitution is that it keeps
government out of these issues altogether.
Many say we must reform healthcare and treat it as a right, because that is the
moral thing to do. Poor people should not go without healthcare in a just
society. But too many forget the immorality of stealing from others in order to
make this so. They also forget the morality and compassion that naturally exists
in communities when government is not fomenting class warfare with wealth
redistribution programs."
. . . and from Richard Russell, editor of Dow Theory Letters, in remarks posted
on his website on July 29th:
"My thoughts on what may be coming up? The difficulty in coming years is going
to be in making money; it's going to be even more difficult in coming years to
avoid losing money. In other words, the hard part will be to hang on to your
money and assets over the next decade. There will be many so-called
opportunities to make money, but most of them will prove to be false or very
risky.
We've experienced 27 years of generally rising prices from 1980 to 2007, in
which profits were easily and readily available. However, over time, the
markets tend to even out. Therefore, I foresee a long period ahead when the
opposite holds true, and in which it will be very difficult to accumulate
profits and very easy to lose money.
. . . and from Bill Bonner, founder of Agora Publishing, writing in The Daily
Reckoning newsletter on July 30th:
"The markets are always teaching us...always correcting us...always giving us a
kick in the pants. These are moral lessons...in the broad sense. That is, if
you do the wrong thing you get punished for it. Step on a rake; it hits you in
the face.
The purpose of a bear market is to correct the errors of the preceding boom.
Most prominent among those errors is to think you can make money by speculating
in the stock market. When this idea takes hold, good sense goes out the window.
People will buy dotcoms with no business plans...and house builders at 40 times
earnings!
But that's how we'll know when the correction is over - when people give up on
the stock market...when they want nothing more to do with it. Judging by today's
news...we're still a long way from there.
Get ready for another crash...the next leg down of this historic
correction...the next kick in the pants...the next moral lesson." |
