Infrastructure Quicksand…Start Asking THE RIGHT Question!

Posted by Howard
on March 9th, 2009

This morning I went on a very small buying spree but have remorse just a few hours later. It seems ridiculous, but small losses quickly become giant ones in this market. There have not been two up days in a row since early FEBRUARY.

There could be no death worse than ‘Death by a Thousand Cuts’ yet we are living it.

We are now in the worst DOW decline since 1929, but if this market is worse, we are only half way there. It is easy to get caught up in catching a historic bottom, but why bother?

The one question you MUST ask yourselves tonight and every night until the coast is somewhat clear…how will you survive if this trend continues to the downside?

It is obvious that America has ‘Too Much Infrastructure’ where is does not matter and ‘Too Little Infrastructure’ where it does matter.

We are a nation of wasters and because it has gone on so long and unmanaged, we are bloated in marketing, advertising, public relations, media experts, lobbyists, bankers and soon to be government.

We have rail and public transportation systems that have traffic at 50 year highs, yet we continue to focus spending on defense and worse yet, insolvent banks.

We are stuck in quicksand.

It is not just old tech and old media and old telco and old infrastructure. It is the safety nets of old – tobacco, band-aids (Johnson and Johnson) and toilet paper (Procter and Gamble).

I have blogged many times in the past about getting stuck at a Walgreen’s shelf searching for a band-aid and being mesmerized by the idiotic choices.

Those clogged shelves of stupidity are now reaping havoc on the safety stocks of old. Take a read of Jon Markman’s excellent piece in MSN

The country is buried in ‘Infrastructure Quicksand’.

Seemingly safe, high paying jobs are about to take a another serious ratcheting down. CBS is trading at $3, down from $34 not only because of their ‘Infrastructure Quicksand’. They are a victim of the ‘Infrastructure Quicksand’ crushing their paying customers like GM, Procter and Gamble and Johnson and Johnson.

The stock market is a discounting mechanism for sure, but it is possible it is broken. It is also possible, that just like ANALysts could not measure the upside potential of internet stocks and Google during boom times, they surely can’t measure the degree of unwinding necessary to create a bottom in this market environment.

Unless you have the connections to get a government contract in military, infrastructure, grid spending or pig fart cleansing, you better get liquid, get smart, get small and get socially leveraged to survive a drought of not just price, but TIME.

I vowed to get offline for a week, but Twitter makes it too easy to stay connected and I am an insomniac so writing makes me happy. It’s a curse that I love. Lucky you.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.