The Fiscal Cliff-Hanger: Were the Mayans Right?

Good news!  The US Government has confirmed the end of civilization as we know it WON'T happen on December 21, 2012 - the end of the Mayan Calendar.  The bad news? The Mayans may only have been off by 10 days.  The US will plunge off the so-called "fiscal cliff" on December 31, 2012.  Many folks are probably wondering what this "fiscal cliff" is all about anyways? The "fiscal cliff" is the phrase coined by the United States top economist, Federal Reserve Chairman Ben Bernanke, to characterize the man-made impending economic cataclysm created by our US Congress.

Bernanke said, "Under current law, on Jan. 1, 2013, there's going to be a massive fiscal cliff of large spending cuts and tax increases. I hope that Congress will look at that and figure out ways to achieve the same long-run fiscal improvement without having it all happen at one date."

Congress, in its infinite insanity, decided playing chicken with the US economy via the man-made "debt ceiling" and "budget" crises at least twice every year, was not exciting enough.  So, Congress purposely set up the US economy to drive over a cliff, unless the most dysfunctional group of 535 people ever assembled in world  history, comes to an agreement on whether to steer left, or right and avoid plunging into the abyss.

So, the big question is, "which is Thelma and which is Louise" in this picture from our real-time historical econo-drama?  I'm sure we can all agree that Treasury Secretary Tim Geithner (a.k.a TurboTax Tim among the CPA crowd) is Brad Pitt in this analogy.

My second question is, "should I trademark the term econo-drama?"  Just think of the royalties Dr. Bernanke could have earned had he trademarked "fiscal cliff?"

And lastly, "who will bail out the U.S." if we continue to write our own version of the similar econo-drama, and Greek tragedy, "The Five Little PIIGS" that is playing out on the European stage simultaneously? 

Insider Trading Laws Don't Apply to Congress?!?

On Sunday the TV show "60 Minutes" did an excellent report about how "insider trading rules," that apply to EVERYONE, do NOT apply to members of congress.  Anyone who buys or sells investments while in possession of information not available to the public goes to jail - unless you are a member of congress.  And, no surprise, members of congress seem to have a very good stock and option trading record!  

Just think how much money you could make if you could do things like, buy stock in the initial public offering of VISA (the credit card company) knowing that highly restrictive credit card legislation was going to die in the House of Representatives? Nancy Pelosi, the Speaker of the House at the time, did just that!  

Or, what if you could buy a whole bunch of stock in health insurance companies the day before congress revealed legislation that would significantly help health insurance companies? John Boehner, the current Speaker of the House, did just that!  

How about buying a bunch of "put options" (betting the stock market would go down) after attending a confidential meeting where Federal Reserve Chairman Ben Bernanke first revealed the impending financial crisis?  Find out which member of congress did that by clicking the video link below.

Every voting American needs to watch the beginning of this CBS 60 Minute report.