Article Index

The Growing Threat to Capitalism

American exceptionalism, the country's qualitatively demonstrable advantage over other nations, used to be characterized by individualism.

Not to mention egalitarianism, republicanism, and populism.

All of this was supported by the government's laissez-faire approach to America's capitalist economic system.

That's all changed. And not for the better.

Now, top-down technocratic government manipulation of civil liberties, and the American economy, is pushing the nation towards the pernicious charms of socialism.

And America, investors and non-investors alike, will suffer from its impact...

Election 2012: Is Mitt Romney a John Kerry Impersonator?

Be wary of the rich, slick politician from Massachusetts, he might seem eerily familiar.

He flip-flops. He's super-rich. And he has nice hair.

Only this time it's not Sen. John Kerry, D-MA. It's Republican candidate Mitt Romney, the former Governor of Massachusetts.

The comparisons are so similar Election 2012 pundits now compare it to the 2004 election which pitted Kerry against the incumbent George W. Bush.

Here's another similarity: Neither one comes off as likable-- not even to their supporters.

Even still, like Kerry, Romney has been heralded as the candidate most likely to defeat the incumbent even though he hasn't inspired or energized voters.

That may be why Republicans went through candidates earlier this year like they were Baskin-Robbins flavors of the month.

In the end, voters finally chose Romney over Rick Santorum, favoring the uncharismatic yet stable candidate over the exciting but controversial one.

But will Romney and Kerry also share an election loss?

Read More…

Will the Mid-Term Elections Drive the Market Into High Gear?

The past five days added more hues to the emerging snapshot of U.S. economic growth that is sluggish and top-heavy, but still rolling forward -- kind of like a tank that can't get out of first gear. New data shows that U.S. GDP is back to 70% of its pre-recession strength, but jobs have recovered only 9%. It's this disconnect between output and employment that has made the current "recovery" seem so anemic.

That was fine for investors, who bid up risky assets in the past week just as they had the previous three weeks. The S&P 500 rose 2%, the Nasdaq 100 rose 3.5%, overseas large caps rose 3.3%, and emerging markets rose 2.5%. Gold rose 1.7%, silver rose 3%, crude oil rose 2.1%, and even bonds rose 1.5%. Among the overseas markets we care most about, ishares MSCI Thailand Index Fund (NYSE: THD) rose 5.6%, Wisdom Tree India Earnings Fund (NYSE: EPI) rose 3.3%, and ishares MSCI Singapore Index Fund (NYSE: EWS) rose 2.4%. 

To find out why the mid-term elections are important to the market read on...

Money Morning Mailbag: What's More Broken - Washington or Wall Street?

While policymakers will have taken up the debate over financial reform in the halls of Congress, Money Morning readers have been posting comments to our Money Morning Facebook page and writing in to our e-mail mailbag at [email protected] with their thoughts on the Goldman Sachs Group Inc. (NYSE: GS) case and the relationship between Washington and Wall Street.

A week after the Securities and Exchange Commission brought fraud charges against Goldman Sachs, President Barack Obama yesterday (Thursday) blamed the financial meltdown on both Washington and Wall Street in a speech in New York and urged Wall Street giants to stop fighting reform.

Read More…