Caution With the Cash is Wise Policy - WSJ.com

LEMONADE AND PRUDENCE: Caution With the Cash is Wise Policy - WSJ.com: "- Sent using Google Toolbar"

This article is too kind to the Obama Administration and it and Congress' misguided policies.

Clearly the administration and its Democratic allies are guided by Keynesian liberal thinking that assumes business and investors are there to serve the needs of the underprivileged and disadvantaged.

History is replete with the failures of this thinking; but, as Mark Twain said, there is nothing more dangerous than someone who believes something that is clearly wrong.

As such, businesses need to be as conservative as possible with their resources. (A recent read of the history of the success of C. Vanderbilt in building his fortune in the 19th c. shows the wisdom of such conserving of cash).

Some waiting time bombs are clearly the government deficits in the US and Europe. The debt bubble the administration is ignoring is getting more and more attention from those willing to look at the obvious.

There are so many positive things the administration could be doing to support investment and risk taking - but, frankly one sees almost none; and, those seen are overwhelmed like a tsunami by the anti-business policies.

A major reassessment of the priorities of government spending are needed (e.g. the drug war and open-ended entitlements) - none of which are seen by the liberals and the administration.

On the opposite side, the conservatives and Republicans let their myopic social values (and hate) stand in the way of progress (e.g. the vote on repealing 'Don't Ask, Don't Tell').

And, while the platform economy (e.g. manufacturing in China) may have worked and been working, a capital reserve in case of something going wrong (at the same time the capital markets freeze up with a liquidity squeeze (as noted yesterday by a commentator on Bloomberg, Dec. 13) likely in the first quarter of 2011) is absolutely requisite and prudent.

One somehow can't help but think of Obama as going up to little kids trying to earn a bit of money selling lemonade and asking them why they bother - and, instead recommending playing and asking for an allowance (entitlement) from their parents?