#1 RULE OF INVESTING >When the government decides that a company will be successful, it WILL be successful! In other words, probably not a good thing to short.

Another form of saying a similar thought….Don’t fight the Fed! When the government decides the economy will boom, AND they get the policy prescription right, the economy will boom.

Getting the policy prescription right is the key. Before the field of economics became as advanced as today, policy prescriptions were often wrong - as in the great depression. That is why it took 10 years to get out of it. The right prescription was for massive deficit spending. But Washington kept cutting spending as the tax revenues went down, which caused the tax revenues to go down further. Roosevelt’s new deal did increase spending and was working somewhat, but was too small to make a large enough effect. In the infinite stupidity of Congress, they decided the New Deal was causing too high of deficits, and they then cut spending…..Causing the recession of 1937. It wasn’t until WWII demanded massive deficit spending at all costs that the economy recovered - proving John Maynard Keynes correct, that massive deficit spending was the solution - as backwards as that may seem.

The policy prescription in place today IS the right prescription for the economy. However, Bernanke is not the guy to lead it. He a moron who cannot communicate a consistent inspiring message. He is too analytical and keeps focusing on “problems” instead of “vision”.

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