Jockey for Position

Hello,

2010 has been a very interesting year, to say the least. Today is November 6th after the midterm elections. It seems that the Republicans will regain power in the house of Representatives. No worries. This is a trend based on the fact that we have a Democrat in office as the President of the United States. Also, this is very important in many aspect of doing business. Most Economists will give you mixed opinions about the current status of our countries' recovery from a recession, but the facts remain clear. We need to create jobs.

In my opinion, now is time to leverage and jockey for position. I equate our current situation as being the coach of a NBA basketball team. The best team doesn't always win the championship. Most often, the team that is well coached with the right talent wins the title. Honestly speaking, to be a champion you have to think like a champion. Even when you are down by 20 points and your key player is hurt, you can still win. No, it is not always easy but it is a reality that you can still win. Establish and work the plan and hustle to no end. Champions!When Barack Obama said, " Yes We Can," it meant that we can do whatever we as a nation would like. Right now, we are down 20 and MJ just went down with an ankle injury. But we still have Scottie, Dennis and Phil Jackson coaching. "Yes We Can," Why not?

We are still the 2nd largest country in the world behind China. However, if we are going to work the plan we need to know about trends and history that are very important about our country. In the Reagan administration a trendy name was given to William Niskanen's game plan of how the Americans should conduct themselves in the free world, Reaganomics was established. These policies were effective for not only the eight years of President Reagan's administrations but also thru the Presidency's of George H.W Bush and William Clinton. Remember, the only time in our history that we had a surplus was when President George W. Bush took office in 2000. We all know what happen in 2001. But, what most people don't realize is that regulations in the mortgage industry lightened. This gave our country a real estate bomb unmatched by any other housing market or any other housing trend in our current history. Quasi government agencies were securitising no documentation and stated income loans by the trillions and most of the investors that purchased those securities were not American citizens. Ironically, not until the Troubled Assets Relief Program (TARP) of October 2008, when we realized our direction, companies like AIG, Lehman Brothers, Goldman Sachs and Morgan Stanley had to be bailed out, sold OR restructured in order for overseas investors to recoup the funds invested in what I call the FAKE PAPER market of 2001 until 2008.

The foundation of knowing the history of our troubles is to know what we are up against in 2010. Again, going back to our basketball analogy, we can not just shot threes in order to get back into this game, It is not a quick fix. We will obviously need a game plan and some patience to work a plan that seemingly is already predicted to fail in a fearful investor climate. But, we move forward never looking back and working towards a win that is inevitable. 3-2-1. Game!