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Optimism

November 16, 2011 – 6:02 pm

The better than expected news on the economy keeps rolling in. The consumer is still spending, inflation is lower and our factories are increasing utilization according to the numbers out this week. Of course this improvement is incremental and not nearly enough to put a dent in our unemployment problem, but it is clearly movement in the right direction.

Everyone is looking for signs of sustainability as fears over Europe and the artificial deadline for the super committee approaches. As an investor, by the time that happens it will be too late.
Either you believe the U.S. is going to survive and thrive or you don’t. Many have little faith, however, that doubt is misplaced. Always, throughout the last 200 plus years we as a people have always picked ourselves up, dusted off the lingering malaise and gone back to work. Our economy will thrive again because the people will innovate, will continue to increase productivity and they have the economic freedom to do so, unlike many countries where social strata and government interference in one form or another restrict the individuals’ desire to improve their lot in life.

Europe will take care of Europe. The social and economic model they have built is showing the folly of over borrowing. Here in the U.S. we are addressing that same problem, and whether it takes more taxes and/or less spending, we will correct the situation. The last time we found ourselves in this predicament the solution was to grow the economy and slow future spending. Back then we called ourselves the Welfare State and major changes were made to those benefits. There were strong opinions on both sides of the political spectrum but it was needed and it worked. Today the debate is the same.

Things are looking up.

Good Trading
Steve Peasley

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