Election Reflection

Bush Advisor Karl Rove took a much-deserved shot at the campaign finance system this week in the WSJ.

"Mr. Obama's victory marks the death of the campaign finance system. When it was created after Watergate in 1974, the campaign finance system had two goals: reduce the influence of money in politics and level the playing field for candidates.
This year it failed at both. OpenSecrets.org tells us a record $2.4 billion was spent on this presidential election. And with Mr. Obama's wide financial advantage, it's clear that money is playing a bigger role than ever and candidates are not competing on equal footing."

Aprroximately 130 million Americans voted in the Presidential election last month. Next time around why don't we have voters give each other $18 each and call it a stimulus package as well? It is ridiculous that anywhere near $2.4 billion could be spent on an election. This country really needs to get that number as close to zero as possible. Anything that leads to reform of the system would be a great thing.

On another note, the idea that McCain had a shot had he raised more money seems a stretch, though. While I wasn't an Obama fan, his message hit home.

Good Morning

Go to a Movie

It's another weak opening but I wouldn't worry about it too much.

Has anybody noticed that the daily U.S. equity market this year is a lot like a regular season NBA game? Nothing really matters until the last 10 minutes. Then a big-time player steps up and closes the deal one way or another.

I'm recommending brunch and a movie. See you back here at 3:00.

Why Stop There?

According to Bloomberg, Merrill is out with research today saying that oil could go to $25/barrel next year depending on the severity of the global recession that we're in.

If the analyst is correct, he'll be a hero. If he's wrong, we'll have or be pricing in a better economy so nobody will care. It's sad but true that those conditions make it a good call.

Euro Working

The Bank of England cut the bank rate by a full point to 1% as conditions continue to deteriorate. England and the U.S. are both reportedly discussing plans to take direct action in the mortgage market. The U.S. may be making plans to jam some rates down to 4.5%. The U.K. is looking at ways to defer some mortgage payments for troubled borrowers.

Homeowners aside, what is going on with the financial engineering at the Federal government level highlights the fact that the countries of the Euro zone could be screwed.

The Euro can cut rates, and have been, but they have no central bank and so can't get involved in shoring up the credit markets with any mechanism other than money supply and short term rates.

Economics and Finance textbooks everywhere are being rewritten as I write this. It's probably too soon, though.

Adobe + Banana Peel

= ouch

Acyclical growth stocks are very very hard to find. Especially large ones.

Looks like Adobe isn't one either as they take down numbers big. The toll-taking continues.