The following is an excerpt from Richard Russell's Dow Theory Letters

You think this presidential race is nasty? The Founding Fathers had it beat. In the race between John Adams and Thomas Jefferson for president in 1800, Jefferson called Adams "a blind, bald, crippled, toothless man who is a hideous hermaphroditic character with neither the force and fitness of a man, nor the gentleness and sensibility of a woman."



In turn, Adams called Jefferson "a mean-spirited, low-lived fellow, the son of a half-breed Indian squaw, sired by a Virginia mulatto father."



Compare these with the relative politeness of today.



Below is a chart tracing the yield on the bellwether ten-year note. The income for lending your money to Uncle Sam is practically nothing.



As we move on, the cry will go up for INCOME. Where do we find anything like safe income? Answer -- get a cushy job with the government.

According to the Lowry's Buying and Selling Indices, there's little desire at this time either to buy or to sell. I note that Bernanke is almost talking the economy down. This allows him to add stimulus (print more money) in the weeks or months ahead, and thus give the President and the politicians what they want -- a higher stock market, a bit more inflation, and a "better" economy.



My son, Ryan, bought a house in downtown San Francisco. The house throws off 00 in profits. Ryan called me to tell me that a man offered him one million for the house. I told Ryan to keep the house and not sell it. It's income property bringing you in a nice little income. What can you do with the money if you sell the house? You can't get any income from bonds. You can't get any income from stocks or funds. No, keep the house as a great source of income. Everybody is screaming for income. Everyone needs income, and they can't find a safe place to get it. So keep your house in downtown San Fran. Consider it gold. Ryan got the point, and he's keeping his house and collecting the valuable income.

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