Thursday, October 21, 2010

Thoughts about the market, the economy and not all stimulus projects are equal.

The Dow has hit 11,200 this morning and is within 58 points of its 52 week high. I had said this rally would go to the 11,200 level in mid September and that prediction has be validated.

Where from here is the big question? I believe that before the election the Bulls want to drive the Dow and the S&P 500 above their 52 week highs. Then we will have the election and the finality of what the political implications will become evident. Will it be gridlock or will something get done to turn this economy around and solve the unemployment problem. The Country needs real jobs and I personally think it would be a great time for infrastructure repairs and a time for some great National project, like an East-West Speed Railroad system, so we didn't need to take an airplane or car to go coast to coast in a more efficient green way.

I have always wanted to take a high speed rail train across the country, as I experienced abroad. Amtrak just doesn't do it. That would be a project I could get behind. How about you? There is a project to build a High Speed Rail train from LA to San Francisco, which many would use, if it becomes a reality, but I am afraid I will be too old by the time it is completed. The Federal government has given $2.25 Billion of the $8 Billion allocated under the American Recovery and ReInvestment Act (ARRA) to this project. The project must be complete and operational by the Fall of 2017 for CA to get the Funds. The four sections eligible for stimulus funding are: Los Angeles to Anaheim, San Francisco to San Jose, Merced to Fresno and Fresno to Bakersfield. However, in order to accomplish the goals set out in the stimulus program, the Authority believes it is clear the funding must not be spread among the four sections, but rather concentrated in one of them.

I have attached a map below of the proposed route for any Californians who haven't seen it. Additional information may be obtained by going to this link at The California High Speed Rail Plan.

If we could start the branches for a National High Speed Rail system, we could then join the pieces to form a national network. This endeavor would add such a wonderful treasure to our country as we are at the beginning of the 21st Century. President Eisenhower left a generational legacy with the InterState Highway system. It is hard to conceive what our country would have been like had Ike not foreseen this project when he did. It is an invaluable treasure for our transportation needs and so too would a High Speed Rail system be, which was designed for a more green, efficient way to cross this great land. I would like to see this in my lifetime, wouldn't you?

The lesson of this ramble is that not all stimulus is equal. Some stimulus have real long lasting benefits, if you can think beyond today. Can you? This is why voting is so important. If you vote you can make an impact and if you don't vote, you have left the decisions about your future to someone who only cares about themselves. The Tea Party and the Republicans have declared no more spending! Reign in Government, is their cry. To me that means no solutions to our current problems. The Democrats want some stimulus targeted for this type of project and other Green solutions. Did you know that freight rail systems get 436 miles on a gallon of gas? Vote and vote wisely this election. Elections have consequences! Your future depends on it as well as that of your children. It really is an important election.

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Blogger Vic Cebollero said...

I think it's a good idea, but how can our country move forward when the government is clearly behind corporate interests that appear hell bent on globalization? The plunder from the banks continues unabated and the Federal Reserve is not responding to the cries from the disenfranchised homeowners who are being thrown out of their homes. If the government can't address the core issue of who gets bailed out the people or the banks, then TVA type projects will never get funded and the bankers will keep collecting their #140B in bonuses while Joe Sixpack is forced to sell apples. Bring justice to the corrupt financial industry first, unless we fix that we will as Jefferson said, " ... be strangers in the land our forefathers fought so hard to get".

6:17 PM  
Blogger Charles Amico said...

Vic, until the voter can sift their way through the BS, we haven't got a prayer. These Corporate ads running all around the country by those wanting more jobs outsourced to India and China are fooling the voter. They are so craftily worded they will get the average uneducated voter to vote against their own interests. Somehow, the people must get what they want even if it is bad for them. Then maybe they will wake up.

6:30 PM  

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