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business newsWhat the World Will Look Like If Occupy Wall Street Wins
By
Keith Fitz-Gerald, MoneyMorning.com
Nov 01, 2011 12:45 pm
Can OWS get enough momentum to make the politicians yield to its will? If so, this is a good argument for continued investment overseas.
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There are many reasons why the Occupy Wall Street movement could fail -- a lack of cohesion, too many directions, no leadership, not enough money, and no representation, to name a few.
But what if it "succeeds?"
What would our investing landscape look like and what would we do about it?
I think that's an interesting question, especially since Occupy Wall Street has gained some traction, even taking on a global appeal. And more importantly, there are two other reasons the movement could succeed:
A lot of people thought they would go away, too. But Tom Hayden and his collection of Students for a Democratic Society didn't. Nor did Abbie Hoffman, Bobby Seale, and others. Their passion and that of thousands who joined in eventually succeeded in changing the course of social consciousness.
OWS could too.
In the shunning of the hierarchy that is organized politics and corporate America, there is the sort of strength necessary to address the growing disparity and the vanishing opportunities that are the new economic reality for millions of Americans.
I, for one, am hopeful that OWS will find the leadership needed to clearly delineate its goals and mandate change on the strength of the raw, unvarnished potential that is now driving it.
I am also hopeful that OWS will succeed in raising social consciousness to the point that living within our means becomes both an economic and political reality.
But that's just me. You may have entirely different feelings. That we might not agree is irrelevant.
Since OWS began, I've been watching carefully and doing a lot of deep thinking about what things might look like if OWS "wins" -- however you define the term.
So here's a look at some of the potential changes that could take place if the movement succeeds:
Milton Freedman reportedly quipped there is no such thing as a free lunch. Perhaps we are coming to the end of a free lunch society. I have to wonder.
That's the real key here. If OWS gets traction, it will carry the debate away from traditional politicians. Therefore, the real objective should be to change the agenda. The question is, can OWS get enough momentum to make the politicians yield to its will?
This is about as good an argument as any I've heard for continued investment overseas. The combination of overzealous politicians, punitive tax policies, and the involuntary redistribution of wealth that will inevitably hit us all -- from the very highest earners to the very lowest -- signal weaker financial markets ahead. The best choices will be companies doing the bulk of their business in foreign countries where their money (and their investment) is treated better. Until politicians understand that stretching the recovery does nothing to eliminate the excess, nothing is going to change.
Editor's Note: Keith Fitz-Gerald is the chief investment strategist for Money Morning, an online investment research site.
Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
But what if it "succeeds?"
What would our investing landscape look like and what would we do about it?
I think that's an interesting question, especially since Occupy Wall Street has gained some traction, even taking on a global appeal. And more importantly, there are two other reasons the movement could succeed:
- First, our political system is broken and has deteriorated into little more than a fancy debating society.
- And second, the world's central bankers remain out of control; their bailouts are saving the irresponsible at the expense of the hardworking. Our regulators and Wall Street remain locked in an unholy alliance that has done very little to fix the underlying problems that have resulted from decades of bad fiscal policies, unsound monetary practices, and dysfunctional leadership.
A lot of people thought they would go away, too. But Tom Hayden and his collection of Students for a Democratic Society didn't. Nor did Abbie Hoffman, Bobby Seale, and others. Their passion and that of thousands who joined in eventually succeeded in changing the course of social consciousness.
OWS could too.In the shunning of the hierarchy that is organized politics and corporate America, there is the sort of strength necessary to address the growing disparity and the vanishing opportunities that are the new economic reality for millions of Americans.
I, for one, am hopeful that OWS will find the leadership needed to clearly delineate its goals and mandate change on the strength of the raw, unvarnished potential that is now driving it.
I am also hopeful that OWS will succeed in raising social consciousness to the point that living within our means becomes both an economic and political reality.
But that's just me. You may have entirely different feelings. That we might not agree is irrelevant.
Since OWS began, I've been watching carefully and doing a lot of deep thinking about what things might look like if OWS "wins" -- however you define the term.
So here's a look at some of the potential changes that could take place if the movement succeeds:
- Fiscal responsibility and fairness will rule. As liberal as the movement is as a whole, many of the individual protestors -- I've talked at the OWS camp here in Portland -- remain fiscally conservative. They're not looking to get rich; they are looking for financial fairness. They're also seeking responsibility and accountability in key areas that matter to all of us, like bank accounts, medical payments, and simple survival.
- A new economic reality will arise. I am not sure exactly what this term means yet as the OWSers define it. This is not because I disagree with them. In fact, I don't on many issues. But for every articulate individual I've encountered who is part of the movement, I have also run across a variety of foul-mouthed cretins who have no concept of how economics work and whose antics diminish the OWS movement. Still, living within our means seems to be the overarching theme.
Milton Freedman reportedly quipped there is no such thing as a free lunch. Perhaps we are coming to the end of a free lunch society. I have to wonder.
- Banking will be boring. Many OWSers have focused on corporate greed without really identifying the elements needed to rein it in. To me, this is part of the greater social justice narrative. It's also indirectly a political process because the bankers who got us into this mess are tied to the K-Streeters who, in turn, are tied to the special interest dollars used to "buy" our entire political system. If anything, the anger being directed at our bankers is a spectacular glimpse into the very roots of democracy and equality because it could come full circle come election time.
- Social investing will go mainstream. We've had social investing funds and social investing mandates for years. There are "sin"-free portfolios, portfolios that comply with the spiritual values of the world's major religions, energy-free investments, and more. I can easily envision additional social investing categories based on the many divergent causes now wrapped up in OWS. Sadly, though, I can also envision Washington riding to the "rescue" with mandated investments designed to control what's left of our personal wealth as a result of the OWS movement. The biggest target is the wealth already accumulated in our 401(k) plans -- more than $14 trillion at last count. Social Security, mandatory health care, infrastructure...these are all thinly disguised taxes. If OWS truly represents the 99% as it claims, perhaps it's time to engage the big issues rather than let politicians dictate our choices, regardless of which side of the aisle they sit on.
That's the real key here. If OWS gets traction, it will carry the debate away from traditional politicians. Therefore, the real objective should be to change the agenda. The question is, can OWS get enough momentum to make the politicians yield to its will?This is about as good an argument as any I've heard for continued investment overseas. The combination of overzealous politicians, punitive tax policies, and the involuntary redistribution of wealth that will inevitably hit us all -- from the very highest earners to the very lowest -- signal weaker financial markets ahead. The best choices will be companies doing the bulk of their business in foreign countries where their money (and their investment) is treated better. Until politicians understand that stretching the recovery does nothing to eliminate the excess, nothing is going to change.
- Hard assets will back a new global currency basket. I'm not hearing any talk of this from OWSers; perhaps they haven't put two and two together yet. If there is to be equality and the gap between the haves and have-nots is to be closed, there has to be a reduction in debt and a corresponding increase in real assets. This will take a concerted, worldwide effort that may ultimately need to include a common currency or at least a common currency trade basket. In that sense, OWS may prompt the "new world order" long feared by conspiracy theorists.
Editor's Note: Keith Fitz-Gerald is the chief investment strategist for Money Morning, an online investment research site.
Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
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Fifteen trades. All profitable. Since launching his Geiger Index trading service late last year, Money Morning Investment Director Keith Fitz-Gerald is a perfect 15 for 15, meaning he's closed every single one of his trades at a profit. And he did this during one of the most volatile periods for the U.S. stock market since the Great Depression. Fitz-Gerald says the ongoing financial crisis has changed the investing game forever, and has created a completely new set of rules that investors must understand to survive and profit in this new era. Check out our latest insights on these new rules, this new market environment, and this new service, the Geiger Index.
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Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
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