Outspoken

by Larry Levin

There have been many countries calling US spending reckless or worse. As I noted this week China, Russia, Gulf States and others are so fearful of US out of control spending that they are calling for a new world reserve currency. Moreover, the current president of the European Union recently ripped the Obama administration's economic policies, calling its deficit spending and bank bailouts "a road to hell."

In defense of the President, however, I believe that whoever was President would be spending nearly as wantonly. With the exception of Ron Paul, there is nobody in Congress, including John McCain that believes in anything but the failed remedies of economist John Maynard Keynes. Perhaps this is why there are no men or women in Congress that have the guts to rise and eloquently speak against the madness.

We need a man like Daniel Hannan who had the courage to blast Prime Minister Gordon Brown in the U.K. on his handling of their economic crisis. One could nearly same the same to our leaders, which is surely why this heretofore unknown politician became a YouTube overnight sensation. What he said resonates with the US public.

The following are partial portions of his comments, followed by the link.

"Prime Minister, I see you've already mastered the essential craft of the European politician: namely the ability to say one thing in this chamber and a very different thing to your home electorate." (Isn't that the truth! Whatever it takes to get elected - right?)

"We are now running a deficit that touches 10 per cent of GDP, an almost unbelievable figure - more than Pakistan, more than Hungary; countries where the IMF has already been called in." (The US is also running deficits of 10%; however, the total "official" debt will be 100% of GDP in about 2 years.)

"You cannot spend your way out of a recession or borrow your way out of debt. (All government officials are Keynesian morons - believing they can spend themselves into prosperity.) And when you repeat, in that wooden and perfunctory way, that our situation is better than others, that we are well placed to weather the storm, I have to tell you, you sound like a Brezhnev era apparatchik giving the party line."

http://www.youtube.com/watch?v=94lW6Y4tBXs

This is exactly what someone in Congress needs to say to Tax-Cheatin'-Timmah, Helicopter-Ben Bernanke, and to the White House for their fiscal recklessness and bank bailouts at taxpayer expense. Furthermore, whomever this brave politician would be, he or she would also need to demand the same from his own party.


Previous Day's Trading Room Results:

Trade Date: 3/27/09

E-Mini S&P Trades*
(before fees and commissions):


1) VA buy @ 8:30am at 815.00 = +1.50 (1 lot)

2) VA sell @ 9:50am at 816.00 = b/e & -.75 (2 lot)

3) Engf buy @ 11:10am at 819.00 = -1.25 (1 lot)

4) IDVA buy @ 1:40pm at 812.75 = +2.00 (1 lot)

5) 80% buy @ 2:15pm at 815.50 = +1.25 (1 lot)

6) Algorithm positions (6)...combined Secret's and Algo total...+9.00


Electronic (YM) Mini-Dow:

1) None today



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