12-09-2009

What Country are We Living In?

I’ve been watching the Economy closely for 35 years.  I’ve opined.  I’ve forecast.  I’ve made predictions and recommendations.  Things in the economy and political backdrop have changed at times, but mostly they go back and forth and then for the most part remain the same.  That is, until this year.  Now, I don’t recognize many of the behaviors that have been exhibited, and I find myself wondering:   what country are we living in?

 If someone told me the following story and asked me what country this story was unfolding in, I certainly wouldn’t guess the United States:

  The legislature of this country is intellectually dishonest.  They propose to take money out of a bankrupt healthcare program, and at the same time, they are adding 35 million participants to the system, stating that this is progress and will save money.  The head of the Senate of this country likens anyone not following his lead on how to reform the healthcare system to slave holders during our country’s darkest hour, trying to intimidate his opposition.  The Chief Executive of this country breaks the law by grabbing money that was legislated to fund a certain purpose and diverting it to support a program that he believes will be popular.  A top bureaucrat decides that by fiat, she will impose limits on carbon emissions because she doesn’t like the fact that the legislative branch hasn’t passed a highly dubious law that she endorses.  She cares little about the potential impact on the economy, as she has never worked a day in the private sector. 

This doesn’t seem like things that could ever have happened in the United States of America.  It seems more like a modern version of what might have happened in the past in Russia.  Russian revolutions occurred like clockwork when the people had enough.  The czar and his family usually fared badly.  

Fred S. Fraenkel
Vice Chairman and
Chairman of Investment Policy
Beacon Trust Company

Copyright (c) BEACON TRUST 2010. All rights reserved. The information contained herein has been obtained from sources believed to be reliable, but is not necessarily complete and its accuracy cannot be guaranteed. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness, or correctness of the information and opinions contained herein. The views and the other information provided are subject to change without notice. This report is issued without regard to the specific investment objectives, financial situation, or particular needs of any specific recipient and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Past performance is not necessarily a guide to future results. Company fundamentals and earnings may be mentioned occasionally, but should not be construed as a recommendation to buy, sell, or hold a company’s stock. Predictions, forecasts, estimates for any and all markets should not be construed as recommendations to buy, sell, or hold any security--including mutual funds, futures contracts, and exchange traded funds, or any similar instruments. The text, images, and other materials contained are proprietary to Beacon Trust. and constitute valuable intellectual property. No material from this report may be used or otherwise disseminated in any form to any person or entity, without the explicit written consent of Beacon Trust. All unauthorized reproduction or other use of material from Beacon Trust shall be deemed willful infringement(s) of this copyright and other proprietary and intellectual property rights, including but not limited to, rights of privacy. Beacon Trust expressly reserves all rights in connection with its intellectual property, including without limitation the right to block the transfer of its products and services and/or to track usage thereof, through electronic tracking technology, and all other lawful means, now known or hereafter devised. Beacon Trust reserves the right, without further notice, to pursue to the fullest extent allowed by the law any and all criminal and civil remedies for the violation of its rights.