This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Romney: It's an Inauguration, not a Coronation

As his fellow harpies dial up the intensity and frequency of their attacks, there is a lot to be disregarded. Frankly, there is also a lot to be disregarded as Romney himself espouses his ever-evolving (wasn't I nice?) themes and philosophy. But here are some thoughts as to how one might navigate the avalanche of platitudes and brickbats of the current political campaign.

First, forget about the fact that he's a wealthy guy. None of the candidates is hurting for cash. And don't hate Mitt for spending a sum on a vacation that exceeds all of your retirement savings, but don't be impressed by it either. This is America, after all.

And, of course, there is no need to take seriously either the flip or the flop on that large number of issues where the Great Equivocator seems to have -- er -- equivocated. Consistency, foolish or otherwise, is not a characteristic that can be ascribed to any presidential candidate. And finally, the fact that Bain Capital sometimes looted companies and killed jobs is not remarkable. Nor is the fact that Bain Capital sometimes created jobs. This is capitalism, and all of the literally thousands of enterprises that call themselves private equity or hedge funds did exactly the same thing -- perhaps on occasion with less voraciousness and enthusiasm -- but also, for the most part, less successfully. What is notable about Mr. Romney's association with Bain is what you can perhaps glean about his worldview. More on that later.

But here's what we do know. Irrespective of his attempts to morph from moderate former governor of Massachusetts into ardent right-wing GOP candidate of 2012, a number of Mr. Romney's positions are pretty anti-consumer.

1. He hates the very idea of the Consumer Financial Protection Bureau and we can be certain he would do his best to kill or, at the very least, emasculate it. He has, in fact, committed to "repeal ing the Dodd-Frank Act" in its entirety, and replacing it with something more "streamlined." He promises that he'll "Initiate review and elimination of all Obama-era regulations that unduly burden the economy." Did you catch that? He's committed to eliminating the regulations before he's actually reviewed them. I would expect more of any thoughtful and deliberative leader.

2. His tax plan would provide very little if any tax relief to the lower and middle classes but would be a boon for high-income earners. The Associated Press, reporting on an analysis of Romney's plan, wrote "On average, households making less than $20,000 would see their taxes increase by more than 60%, said the Tax Policy Center, a Washington research group that studied the Romney plan. Households making between $50,000 and $75,000 would get small tax cuts, averaging 2.2%, or about $250, the study said. People making more than $1 million would get tax cuts averaging 15%, or about $146,000."

3. He advocates trade war with China. The scariest position Romney has taken seems to be among the most genuine -- at least according to his aides who say that the policy came directly from Mitt himself. Even a Wall Street Journal editorial noted that, "By far the most troubling proposal is Mr. Romney's call for 'confronting China' on trade ... pledging to have his Treasury brand China a 'currency manipulator' if it doesn't 'move quickly to bring its currency to full value.' He'd then hit Beijing with countervailing duties. Starting a trade war is a rare policy mistake that Mr. Obama hasn't made, but Mr. Romney claims it is a way to faster growth ... But giving Americans the impression that a trade war will bring ... jobs back to the U.S. is offering false hope. It also distracts from the other fiscal and regulatory reforms that are needed to attract capital and create jobs."

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $130.42 1.26%
FB $80.41 1.07%
GOOG $555.48 2.13%
TSLA $207.19 1.68%
YHOO $44.45 0.04%

Markets

DOW 18,214.42 -10.15 -0.06%
S&P 500 2,110.74 -3.12 -0.15%
NASDAQ 4,987.89 +20.7530 0.42%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs