The big companies, the kind that make up the S&P 500 and the kind that accompany the President of the United States to China and Chile with 17 planes and 25 boats, (presumably gourmet meals for the beggars and their others also), are very dependent on government handouts, bailouts, licenses, and restrictions of competition. I am not sure that if the government expenditures were cut substantially, and service rates reduced by 4/5 or so, that this would not have an immediate negative impact on the S & P. After all, the theory of least effort and everything. Now these companies would have to compete rather than get hand outs. A terrible thought. Of course this immediate reaction would be counterbalanced in the fullness of a week or so by the realization that total consumer spending and wealth would increase 100% and life expectancy by 10 years, and this would be grandly bullish.





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