Take the other side of the freak out…

Oh the budget woes of the governments around the world.   And we’re  obviously not just talking about Ireland, Iceland, Italy, Spain,  Portugal and those other countries over there that seem to dominate the  macro-economic headlines most every day in 2011.  Of course, the other  big headline that the mainstream media wants you to focus on is the  supposed “budget impasse” in our own country, here in the US.

And any time the markets are freaking out about something that’s  simply a rouse, as this “budget impasse” absolutely is, it’s a great  buying opportunity.   Take the other side of the freak out.

Apparently, the same Republicans and Democrats who found $850 billion  in 2008 and trillions in further assistance to bailout the TBTF bank  shareholders can’t find a few tens of billions of dollars to continue to  fund food stamps, welfare payrolls, educational programs, cancer  treatments for poor children, for social security and other social  services for the general public.   Yes, the same Republicans and  Democrats who give away trillions of dollars ever year to these same  banks nowadays by lending them taxpayer money at 0% and borrowing it  back in the name of the same taxpayer whose money they just lent at  3-5%, apparently can’t find a couple billion dollars to fix bridges  anymore.  And the Republicans and Democrats who say they have to cut the  assistance that my Haitian friends on 101st and Amsterdam who all work  full-time but can barely afford to make the stabilized-rent where the  family of eight has lived the last twenty years can still find trillions  of dollars for subsidies for ethanol, oil, offshore drilling, coal  companies, giant construction conglomerates, first-time homebuyers,  underwater homeowners, and a check of $2 billion in welfare at the end  of last year for GE, which would have been insolvent in 2008 if  rule-of-law still applied to corporations in this country.

So let’s step back from all this mainstream focus on how the  Republican/Democrat Regime in power is broke.  It’s not.  Indeed, the US  would immediately run a surplus if we simply cut each and every subsidy  for corporations, rich people and homeowners.   With trillions of  dollars in targeted tax tricks for the biggest corporations with the  biggest lobbying budgets and companies like Microsoft and Google barely  bothering to pay taxes while others like the aforementioned GE actually  get an outright welfare check from the government.

You and I pay taxes, right?  My companies pay taxes, don’t yours?  If  the Republican/Democrat Regime could be bothered to just make everybody  pay their fair share of taxes in this country — both individuals and  corporations — we’d immediately be running surpluses, not deficits.

Of course, all the people running these companies and the politicians  they pay to get all their targeted tax tricks are already screaming  that even an increase in simply collecting corporate taxes would somehow  derail our economy.  Uh, if simply applying the rule of tax law equally  to every person and corporation and for-profit entity in the country  would destroy the economy, then cut taxes for all the rest of us too.

My point here is actually all about trading.   Think about it — just  because the mainstream media and the Republicans and Democrats and the  corporations that own them want you to fret about our country’s ability  to continue to fund a few billion dollars here and there in social  services and infrastructure upkeep while simultaneously finding  trillions for corporate and homeowner welfare doesn’t mean it does  matter.

In fact, all this senseless handwringing over the Republican/Democrat  Regime pretending its broke is a buying opportunity.   They will indeed  figure out how to borrow the money from the same banks they’re lending  your welfare money too and the economy will go on.  Indeed, in three  months we won’t even remember why everybody was so worried about all of  this supposed budget problem.

I’ve been actively buying both Google and Microsoft lately, as the  companies are as cheap as they have ever been and will continue to grow  their earnings for years.  Who knows, maybe someday they’ll actually  have to pay their fair share of taxes with my shareholder money.   Somehow I would be that our markets would be much, much higher and  prosperity and life in a country where rule of law is universally and  equally applied.

Regardless, when this stupid bluff of a budget impasse by the  Republican/Democrat Regime ends in a few weeks, the market’s likely to  start rewarding strong fundamentals again.  And both Google and  Microsoft have plenty of strong fundamentals.