QE2 to Navigate Uncharted Waters - Barrons.com

NET VS. GROSS: QE2 to Navigate Uncharted Waters - Barrons.com

The Fed and Obama would appear to be ignoring the old saying about the 'net' and the 'gross' - wherein it's the 'net' to the investor, entrepreneur, etc. that matters; and, with high taxes and increased risks, the adjusted projected net is clearly not being constrained by (at least) current interest rates.

But, as shown by the poster-state for Obama and Pelosi policies (we are of course talking about California), the indications are clear that businesses are leaving the state and the unemployment rate is notably above the national average.

And, based on weekend poling results, the Democrats may end up staying in power in the state - strongly backed by public employee unions.

Somehow, the tea leaves seem a bit dicey. Here the Republicans had a chance to defeat Barbara Boxer in the Senate (but apparently blew it) and the overspending and high taxes of the state's democrats appear to have been endorsed by the electorate.

The investment picture would appear to be clear for global businesses - i.e. they need to and are being forced to look outside the US (after all, they have to compete for both talent and investment capital on a global basis and they have to be able to competitively price their products; and, these are matters that Democrats seem unable to comprehend).

Even American investors are putting money overseas as they feel they can get higher 'net' returns.