Quick, name the Senators from South Carolina
Ok, you got Lindsay Graham. But the state has two senators, who is the other? Answer: Jim DeMint. To paraphrase the WSJ: He is described as the kind of uncompromising conservative who can make the senate leaders’ life difficult. He thinks, among other things that some of his Republican colleagues are helping Democrats push America far to the left. In the Journal this morning he said: “What I’m looking to do as a conservative leader in the Senate is to identify those Republicans, and even some Democrats, and put together a consensus of people who can help stem this slide towards socialism.”
And from today’s letters to the editors John Villanova of Stamford, CT writes::” …the point that is missed is that the Republicans didn’t lose the Congress or Presidency because conservative principles fell out of favor with the electorate; they lost because conservative principles fell out of favor with Republicans, including President Bush. The Democrats didn’t so much win as Republicans lost. The American people still largely subscribe to smaller government, less regulation, lower taxes, personal responsibility, etc. But when those principles were abandoned by elected Republicans, a frustrated public simply threw them out.”
- Bank to the markets. Northern Trust, United Technologies and IBM reported better than expected earnings. The Northern Trust news is especially important. This could move Bank of NY and State Street higher from depression-like lows.
- But the primary problem with major bank stock equities is that they may become worthless. Should the government, in effect, nationalize the majors the government seemingly will not want equity but rather dividend paying preferred or debt. Until that is clarified I’m not touching them except for opportunistic trades.
- The market is already down 11% for the year. It should have bounced by now but there is a reluctance to look beyond tomorrow by equity investors. Everything is a trade and buy-‘n-hold seems a dead strategy.
