Rays vs Pinstripes

need for capitalismWow! “Death of capitalism”! One might expect this phrase out of some extreme left-wing or maybe even a political figure jumping on the band wagon, but a twelve year old girl! That’s right, a twelve year old girl.

In London last week, thousands stormed the financial district in response to the G-20 summit meeting, where such nobles as Pres. Obama and Prime Minister Gordon Brown discussed ideals on how to overcome the global recession. Many hope to compare this meeting to the 1944 New Hampshire conference, where ultimately the winners of WWII set an orderly financial system to repair the war torn markets. But instead of coming together under one umbrella, many are still arguing the century old debate of capitalism vs. socialism.

One may argue that a strong national government is the only way to securely monitor the financial system, as many argue today. The ideology sounds fair. But when you pull back the cover and study the politics behind the system, you might be singing a different tune.

Compare a baseball club where the manager consults with his players on decisions but still has the final say. Sounds fair, right? Sure, since the manager and the players have a thorough understanding not only for the game but the strengths and weaknesses of each member and how to maximize their potential. Pretty straight forward. But now throw in the CEO. All of a sudden the manager and players are washed out by one “above” them. The buck simply passes over the manager’s desk and lands wherever the CEO decides. Now decisions are made by one, ignoring those (and the majority) who know best. And people wonder why the Yankees are so screwed up.

Everyone agrees our financial system needs leadership; it always has and always will. You cannot run such a dynamic power without rules and regulations corralling the greed factor. But do we need the extra CEO? Does the government have a silver bullet? Do we really believe a government ran market is the absolute best scenario? This country fought a war over the same issues many seem to embrace today. Last time I checked this nation is for the people and by the people, not for the government and by the government.

If we start believing “death of capitalism”, our financial system will weaken dramatically. Why are there so many foreign investors dumping billions in our market while basically ignoring their own? The growth happens here. Now is the time to take advantage. Like Warren Buffett said, “Be fearful when others are greedy, and be greedy when others are fearful”. Capitalism may have taken a hit, but we have over two centuries of exceptional growth to outweigh the last two years. Think about it.

-Chad Carlson

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8 comments:

  1. Boogy Says:

    Chad,
    Great analogies by all means. Do I sense that you take a different look on the current market and believe it to be a " CNBC buy of a lifetime opportunity " like they spout daily ? Are you on the opposite side of where FF stands on the markets ? As Summer said today, we have the possibilty of deflation still. Concerning to me. Thoughts ?

  2. Anonymous Says:

    wait, where's FF?

  3. oldschool Says:

    Chad,
    The blogs here had normally more substance than your posting.
    Who cares about a 12 year old girls opinion in politics? Do you really think she knows what she is talking about?

    I know you are new on board, but we are eager to hear opinions, trends and executed trades.

    What is your opinion about government controlled finances?
    We live recently in FASCISM !
    Will the bank CEO"s go for that?
    I think they should rename Wall Street in OBAMA STREET.
    4 weeks ago Geithner announced the finance institutions need 2 trillion dollars more aid.
    Now the banks are well off and want to pay the tarp money back.
    The Government refuses to take the money back, because they want to control all the banks.
    Someone lies big time!!!

  4. Justin Says:

    Wow, you've got to be kidding me. I've been reading this sight for a while now - and enjoying it - but the fact that FF would invite Chad Carlson to start posting on the main page makes me question his judgement. Chad, 0 for 2 buddy. Your first post was a meaningless bit of sloganeering - "It's time to reinvent the wheel!" - but what the hell does that mean? I kept reading through all your talk of being in a "new era" and waiting for some of the concrete suggestions FF normaly gives us, but in the end your post was no different than a political speech: We need to attack the markets, minimize risk, generate alpha! Yeah, thanks, but as a former financial adviser I thought you'd offer a little bit of the "how".
    And now this posting makes you sound downright ignorant. Your defense of capitalism (why even bother on a site like this?) consists of some lame baseball analogy: So the CEO who knows nothing about real baseball is supposed to equal the government officials running the show -- only the main ones shaping current policy have been Paulson (his proposals are still being put into place) and Summers -- two of the biggest banking insiders around. Hardly a couple of out of the loop government wonks.
    And "this country fought a war over the same issues"? What war was that? I'm trying to recall the big battle we had with the socialist country. And how about another tired slogan, "Last time I checked this nation is for the people and by the people, not for the government...." Okay, so the "people" are supposed to be the banking CEO's - an extremely small group unanswerable to the public and concerned only with enriching themselves (I would have added "and their shareholders" until recent events made a mockery of this idea). And the big bad government is the tyrant? That may be, but only to the extent that they recently pillaged the real people's money to the tune of 3 trillion dollars in order to back up these banks. Or would you have us believe that the uber-socialists Paulson and Summers didn't give the financial industry exactly what they were asking for? Any "cumbersome" restrictions now being imposed are there for no other reason than to placate the people who might otherwise vote out of office the government that has given away so much. And yes, at least we can vote out the government, unlike your "of the people" bankers.
    "Think about it"? Next time take your own advice. Or better yet, start posting some concrete investment advice like FF does and leave the politicking to those who can go beyond slogans.

  5. McBalls Says:

    i can see where FF is coming from by inviting Chad on this blog. It's to act as a counterbalance with FF being the bear and Chad being the bull so either one of them will get it right all the time. just like cnbc.

  6. Finance Fanatic Says:

    McBalls, Please do not compare CMS to CNBC :), I have spoken out against many of those fools on air. They're all hedge fund managers looking to get poor minded investors to jump back in early. I am trying to get more and more voices on Crashmarketstocks...

  7. McBalls Says:

    well according to dear Chad "Now is the time to take advantage. Like Warren Buffett said, Be fearful when others are greedy, and be greedy when others are fearful”.

    Isn't that sounding like a "hedge fund manager looking to get poor minded investors to jump back in early" as well.

    There are many voices on cnbc too. i'm not beginning to see any difference.

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