The mating rituals related to the fiscal precipice and the European debt crisis took their toll on the markets last month.  Some would have you believe that dividend stocks are now worth less because the tax burden will increase on the income to be reported, others are selling their stocks now so that they can pay this years capital gains rate rather than some unknown increase.  Fundamentals will prevail over hype. This time IS NOT different,

With all of the talk related to our domestic fiscal cliff, the slowdown of the Chinese economy, and the European debt crisis added to political turmoil that is ongoing my thought is…

If only we could somehow invest in the company that manufactures the cans that get that get kicked down the road.

The latest round of investor worries have stirred the normal phrenetic reactions from the experts.  The politicians remain steadfast in their minimalist reactions to economic catastrophes and, as a result, volatility continues to plague the equity and bond markets as the European “crisis” evolves.  The  domestic economic malaise that threatens to engulf our own future is totally ignored because it has not yet reached crisis proportions.

What I am beginning to find amusing is the special interest wars.  By that I mean the division of opinions on subjects like climate change where the contrary positions of the large energy producers versus the property insurance industry are diametrically opposed.  We have reached a stage where capitalism and politics have become synonymous.  This does not bode well for a long term optimistic view.  If special interests can monopolize public opinion then we will only be successful if those interests happen to be aligned with the common good.  I cannot imagine non competitive social welfare programs being able to go toe to toe with the barons of industry.   You don’t have to carry that logic out too far before you start to realize that “Brave New World” is closer than we think.