1. Control of water by non-government entities. They do NOT care about the public good, but profits. Profit seeking in this case is at odds with the public good. The current economic crisis is exactly because Washington stopped considering “national interests” and started listening to corporate and banking interests instead. The two are EXTREMELY different.

Profit seeking ventures will do almost anything to make more money, and it’s government’s job to regulate them to keep this in check and in line with the national good. Otherwise, see what happened … if instead of keeping the loans I make I sell them instead, then I will eventually have an incentive to make lots of bad loans I can sell because collection and default will be someone else’s problem. Exactly what happened – Common Sense 101.

The problem proliferates from this point onwards. Rating agenices will eventually continue to say “all is well,” and if you are in charge of investments and warn your firm not to buy these loans while everyone else is, you will likely lose your job. So the problem proliferates due to lack of ethics and common sense.

http://www.commondreams.org/newswire/2009/02/25

2. You cannot “stimulate” jobs where there are none – you need to recreate the manufacturing sector and it will take 30 years of policies to do so, especially since we are a high cost environment that cannot compete due to labor costs and health care costs. Rejuvenating the industrial sector is the only thing that will restore national prosperity to our peak of supremacy because the jobs that have left US shores are not going to come back – we’re too expensive. Two things can help. Tax incentives for manufacturing at home, and also a revamping of liability laws to encourage production of products that otherwise would not be made here. Too manyproducts are not made because of liability laws. Sorry, but liability has to be rethought.

http://www.marketoracle.co.uk/Article9109.html

3. The long term cycles do show the stock market rebounding late this year into late 2010, and the dropping from then on into late 2014/early 2015. Here’s a video I made of the current short term seasonality of the stock market calling for a low right about now or in mid-April. Options traders use to your advantage. I’ll release this software sometime soon so you can analyze any market by western and lunar seasonals, by political conditions, by economic conditions, by trend following, by cycles and that’s about it.

http://www.screencast.com/users/wbodri/folders/Jing/media/14d55f26-9769-4a99-99de-349f42a649f3

( http://www.screencast.com/t/Fueshusm )

Either it has bottomed now, or a late October low (October 20 week).

Whichever it is, a rally into December, then the window dressing fall as funds change their portfolio before year end, and then rally to mid January, and then fall into late March/early April 2009.

Somewhere in 2009 we have a bottom (perhaps that is it), and then a rocket rally up to 2010 and then fall for years thereafter until the real mess works its way through the system … probably ending 2014-2015 by cycles work.

Here’s the best charts I can find: