I am tired. I know this is not news, but this geopolitical stuff is really exhausting. It is truly amazing how each day after day, the news makes less and less “sense”. Clearly, there are major contradictions within the news each and every day. OK Arnold, give us an example. OK, here goes. One day, (this past Monday) Speaker of the House Boehner says that the debt limit has be raised that very day without regard to the deficit, then later that day Speaker Boehner says that there will be no increase debt limit without substantial spending cuts. Then the next day, Speaker Boehner says that there has be a dollar for dollar effect, one dollar increase in the debt ceiling, to one dollar cut in spending. Oy! And this is not only a Republican thing. President Obama had refused to allow offshore oil drilling, then suddenly he is embracing offshore oil drilling as though he always supported it. Oy! Take virtually any topic and you will find a similar situation by both parties. I have such a headache, HELP ME!
I am so confused! President Obama wants more offshore drilling; yet on Wednesday, the Democrats in the Senate blocked legislation calling for more offshore drilling. What am I missing? (A lot according to many.)
LinkedIn went public in an IPO on Thursday rising over 100% on the first day. My feelings were that this was clearly a bargain. Last fiscal year earnings were $3 million or so; and by Thursday night LinkedIn was valued at ONLY $9 billion or about 3,000 times earnings. And then I was watching an analyst on CNBC actually saying with a straight face that he felt that this was a fair valuation for LinkedIn. I’ll tell you what, Mr. Analyst, I’ll sell you my company for a measly 200 times earnings! My name is Arnold, please write me at [email protected]. I’m waiting, breathlessly.
I continue to read about the impossibility of dealing with Medicare; yet longtime readers of Arnold’s Ramblings might remember that Arnold suggested a plan with deductibles: Simply stated for those who have incomes of say $50,000 a year would have say a $1000 deductible; for those who have income of say $75,000 a year would have say a $2500 deductible and for those who have income of say $100,000 a year would have a $5000 deductible, etc. (or some variation of that). And in every case the over 65; whether paying personally or through Medicare; the costs would be at Medicare rates as paid by the government. And unlike most government purchases, hospitals and doctors charges are significantly lower than regular rates. In this way, Medicare would become essentially a catastrophic insurance plan and be saved. No applause please!
? The DJIA looks lower short term, then much higher.
? Gold is rising and should reach new highs before correcting down hard.
? Interest rates are still holding, but should start to rise soon.
? The dollar has rallied and may have one more drop before a major rise.
? Oil looks higher short term as well.
? Real estate in most markets looks lower by 20% or so.
? The economy continues to look stagnant or worse.
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