Stock Market Instability + Fixing America

So what is new everyone? Has ENGlobal made a sudden corporate viability change? No. The markets are progressing through what should have happened a long time ago. Since the crash of 2008 we have had some unusual and never seen before conditions.

Business has not been great despite what the White House conveys. Sure, it has been great for select companies in certain sectors but not for the overall economy. The White House and other government agencies have been expressing that business is better than it really is and the main supporting ‘evidence’ they point to is the stock market. This illumination is purely to support the erroneous stance that they, this administration, have improved the economy.

My opinion is that any repair in the economy is nothing more than what would have happened naturally. I also think it would have been much better if some definitive action had taken place to repair it. Has anyone ever see anybody from that economic dream team that Obama put together (including Warren Buffett) and paraded behind him during his first campaign? Of course not, yet I digress.

Q: So what has been holding up the markets for years since the crash?
A: TARP money.

Review history and you will find George Bush started to unleash money to prevent banking and institutions from collapsing. If credit failed our economy would crash – we all get that. Enter Obama a few months later and the Federal Reserve doors went wide open. Further review later testimony from the OMB chiefs before Congress that they lost track of the money – they did not how much money was given out and to whom! This was their job and they failed to keep track of the money. Estimates ranged well into the trillions.

It is easy to figure out where the money is. A percentage of it is invested in the markets and has been holding it up for years in a bad economy. The rest resides in those investing banks and institutions and has been backing them up with a ‘no fear attitude’ helping to keep markets high. The TARP money has created a bubble of sorts that only widespread concern and true economic realization can begin to influence it. That is what happens from time to time with increasing degrees.

A falling tide lowers all ships and that is what is happening to ENGlobal. It is a better company now, albeit smaller, since Mr. Coskey took over. Cutting out dead wood and shaping it up to something better controlled is the first order of business – he did that. Reducing lower profit operations and replacing them with higher margin profit sectors, he is doing that too. That is what the offshore work and automation push is all about. Debt was erased. And this folks is a survivable model for bad times. The next phase is more expansion into higher margins via target acquisitions to get the company value up. That will show up in the future. So you have a good company and it is admirable the price is even held up this well. It’s hard to pick a bottom but it’s a buy.

So what do we need fixed? A new President that will help build business in this country is #1! You may have the strongest military, the most nuclear weapons, many powerful ships or any other measurement of power; but if you fail economically – you are done. This is precisely how the USSR collapsed.

Ignore all the side issues in the political banter. Forget all the side shows about topics that do not affect our economy. The candidate that needs to be elected will not be perfect for any one person. That candidate will have to fix our economy and have the guts to stand up to the present system that has been serving itself instead of the population they are supposed to serve. Once the economy is in repair do we then have the latitude to entertain other issues that are distracting us now from our economic problems. God Bless America. And help us to help ourselves.

Pilot out.