Stimulate Me, Not The Other Guy

President Obama and other senior Democrats are hitting the streets and airwaves to point out the hypocrisy of their Republican brethren who voted against the stimulus package yet lobbied hard to direct some of the money to their districts. That, of course, represents politics as usual but it also points out a key failing of our representative democracy -- we allow politicians to have their cake and eat it too. Congressmen and Senators can wax poetic about over-spending yet argue fervently  to have money spent in their own backyard. They can take a hard line when it comes to appropriating money (especially when it's clear the bill will pass without their vote) and then turn into a weak-kneed lover of pork when the funds are distributed.

If I were President -- or, better yet, King -- I'd rule that if you vote against an appropriation then you can't benefit from it. Consider the Cash-For-Clunkers program. If a Congressman voted against it, then it wouldn't apply to his or her district. How long do you think it would take for he or she to get booted out of office because his constituents were peeved that the folks in a neighboring district were all driving brand-new cars and they weren't? Less than a nanosecond would be my guess.

The premise behind Hard Working Money is that investing isn't rocket science -- and neither is serving in Congress. In addition, when investing, you can't have it both ways -- you can't have big returns without big risks. And when serving as a representative of the people, you also shouldn't be able to have it both ways. Unfortunately, with the bitter partisan divide of the last few years compounded with the near-Depression, our leaders in all three branches seem unable to make hard choices and live with those choices.

As investors, we don't have that luxury. Every investment choice we make has far-reaching ramifications. So come back often, and I'll try to help you make the right choice at the right time and for the right reasons. And check out my new book Your Nest Egg Game Plan for additional insights and visit my website at www.HardWorkingMoney.com.