Is Capitalism Making a Comeback?

I have this sense that our President is so stubborn and poorly advised, that he is starting to almost look silly to the majority of the country that were drunk on the "Hope & Change" Kool-Aid just 2 years ago. The more he speaks, the more he reminds me of a neutered politician making obligatory speeches per the job description. While staying on message - his message, not the American message - there is a sense that he is just speaking for the sake of speaking while the country and the Congress are moving in a different direction.

((King Obama may be more a more apropos title at this juncture, as my view suggests he is merely a figure-head (though not all that well liked of a figure head because King's don't normally take such derisive positions as it makes the State dinner's less enjoyable.)) Of course, he hosts these State dinners and has guests in the White House from all over the world - including sworn enemies of the US, capitalism, and Israel, but getting McChrystal in for a meeting on Afghanistan last year was too hard, spending more than 20 minutes with BP almost 2-months into the crisis didn't fit the agenda (surprisingly so given that it was an opportunity for Obama to pore more fuel onto the populist fire he's been fanning), and while we are giving away hundreds of millions to Hamas..ahem, I mean Palestine (someone show me where Palestine is on the map again??), the President is busy with Beyonce, the guy from Britian that was in the Beatles, and hyping Lebron James to come to Chicago.

So why do I feel that Capitalism, after 18 months of hibernation, is making a comeback vs. Imperialism/Marxism/Socialism etc-ism?

Let's look at a few recent events that suggest the balance of powers, which has also been in hibernation despite our Founder's design, is still in place. The DOE/Obama attempt to shut down Yucca Mountain as a nuclear repository has been rejected by an NRC panel of judges. The ruling says the President (any President) does not have the power to act without Congressional action on a matter of policy.

Why is this important? So much of Obama's agenda has involved using un-elected officials and czars to legislate and impose taxes/fines/levies/penalties on the US population. Whether it's EPA or DOE, solar or carbon, the President has driven his agenda through appointed bureaucrats.

Can't get Cap & Trade passed? Let the EPA make an endangerment finding that, despite contradicting the same agencies views over the previous decades to circumvent the Constitution.

Want renewables? Well, renewables aren't 'technically affordable' (as in they are on where near cost effective under any circumstances at any time)....unless of course you artificially increase the price of coal and other fossil fuels. Some would argue this would make the price of solar more affordable, on a relative basis. Other's - as in those that can do math - would argue that this does nothing to change the fact that renewables are no-where near as cost effective (let alone reliable for base-load generation.) All it does is add another indirect/direct tax on consumers as there would no longer be ANY reliable, cheap source of power. So Obama lives up to his pledge to "bankrupt" the coal industry, which is exactly what he said he would do when running for office ("shoot, there was a mike on me?" to anyone that wants to build a coal plant.

So maybe we are starting to see signs of a mean-reversion back towards capitalism. It would be a welcomed change. I read a very successful investment managers quarterly letter to investors last week where the manager noted that there are industries that are simply un-investable given the President's hand in matters. Obviously, if we begin to sense a shift in this control, stock's would rally. And while Obama would have you believe that means rich people get more rich, which is true and by no means a crime either, pension funds recover (limiting the long-term tax burden to offset losses in defined benefit plans), and consumers look at their statements and gain confidence, which drives investment and R&D spending for future business opportunities (blasphemy!?!?!! Has seemed that way.)

Lets Hope for Change after-all.