January 30, 3009 Edition

Good Morning All,

The world has now entered the post Bush era, a time during which we shall see much in the way of change, both in America and around the world. The first of what I hope will be many Obama years began a little over a week ago, and already we have seen the implementation of many important actions of both a macro and micro nature, the most empowering of which have been the initial steps taken toward the return of constitutional practice and the "rule of law".

Despite yesterday's market decline, amidst an endless stream of terrible economic news, the major indexes staged their best recovery week since the first days of 2009; and no, folks, none of this activity had anything to do with the hodgepodge of proposals laid out in the Harper budget, the silliest of which was the home renovation idea. As I understand it, a new bureaucracy will be created to return some money to people who spend $10,000 on home-work. Well I, of course, don't personally know anyone who has paid their fix-it man or general contractor sous table, but I have heard stories of such tsk tsk goings on. If stimulation is what Harper or Iggy are looking for, why not just simply cut the GST/PST sales tax on building products for one year; and while they are at it, do the same thing for the automotive industry and home furnishings. Simple is often better.

The Obama stimulus package will be passed by the Senate in what I hope will be an enhanced form that does not include more useless tax cuts. These GOP guys had better begin to realize that they lost the election because their silly mantra of tax cuts for the already wealthy, trickle down, and deregulate were a major part of the problem and are thereby not the solution. Demanding dividend tax credits and capital gains exemptions at this "such a time" is patent nonsense. An extension of retroactive capital loss claims makes infinitely greater sense and would be April, impactive.

The stem cell stocks jumped again yesterday, and underneath the broader indexes, the mid and small cap companies have fared much better than the blue chips. We are entering a new era wherein science will be a dominant theme; one in which research and development will hold sway over ideological claptrap and religious cant. The Captain of this recently launched ship of state has said so and I believe his word. I also believe that his devotion to common sense solutions will bring much needed confidence to a world and a nation in dire need of intelligent, adult leadership.

This is not a time for fear but for bold action, investments included.