Thought of the day

Politicians take advantage of every situation to gain power and wealth (after they become lobbyists). They are human - this is what humans do. Any time. Any place.

Then problems arise because they think the next guys will solve the issue they created. But the next guys try to kick the can and pass the ball to the next set of politicians. And so on, and so on.

Eventually the time comes to pay the piper. Some ideas are beginning to float of what the problems might be. The seniors protest. New ideas. The unions protest. New ideas. The police and the firemen intimidate us with loss of security. Then defense. No way! The lengthening of the age to receive Social Security. Are you kidding? -- Political suicide.

The best line of action -- fake it. Kick the can down the road. More super committees.

This is what the Europeans have done. The lesson? Politicians are bound, forced to wait for the crisis to erupt. Only then will the people understand and accept the solutions. That we like them or not.

The Europeans waited until the crisis unfolded. Now they are forced to solve the problem. The PIIGS could not keep borrowing at German interest rates. Interest rates are soaring. Their economies are in disrepair. The people will accept any solution, even if they do not understand what is being done to them.

The USA is next. It is not that we do not know the solutions. The problem is that the people do not accept them. They will accept them only when we are facing the ugly crisis.

We cannot keep borrowing at zero percent interest rates forever. The PIIGS cold not keep borrowing at German interest rates forever. The script is the European script. And it will provide exciting investment opportunities.

More details in my The Peter Dag Portfolio , in Dag's Exclusive market Alert, and my free educational videos on http://www.peterdag.com/.

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
2009 Market Timer of the Year by Timer Digest

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