Global Stock Markets and
General Economics
"Paper money
eventually returns to its intrinsic value ZERO" - Voltaire 1729
The greatest hoax and fraud in
history perpetrated by public serpents, crony capitalists and their central
bank and bankster masters continues to fall to its demise. Ever since Breton
Woods ii changed semi-sound money into iou's and promises to pay, this inevitable
moment has loomed large. As Ponzi finance fails, so do all the investments
which underpin it. This is the greatest reversion in asset prices,
mal-investments, to their real values -- reflecting their ability to produce
wealth rather than the constant debasement of the currency in which they are
denominated.
Now is not the time to hide or
stick your heads in the sand with your investments as your paper currencies
and bonds are BURNING. They will fall victim to the central bank printing
presses and morally and fiscally BANKRUPT politicians in the social welfare
states of the developed world.
Volatility is set to expand
once again, both up and down in many markets and VOLATILITY can be
opportunity for investors. You must learn how to restore the functions of
money, implement investments (absolute return alternative investments) that
have the potential to thrive in up and down markets and seek the INDIRECT
exchange, as outlined by Von Mises. If you have an interest in this contact
me, click
here (http://www.traderview.com/portfolio_analysis_analysis.cfm). CASH is
no refuge and neither are bonds.
The broad public is still
asleep at the wheel, duped by the "politically correct progressive"
main street media, central banks, public serpents and the governments in
which they have misplaced their trust. They are impoverished by inflation as
a policy of government rather than the production of wealth on which their
societies rose. The "something for nothings" will eat and destroy
the foundations upon which their formally capitalist economies produced
rising middle classes, borrow until they can borrow no more and eat their
most productive citizens and businesses until they COLLAPSE under the weight
of the people who vote for a living rather than work for one.
The initial bounce in markets
and economies off the March 2009 lows is mostly OVER and, as you shall see,
last month's TECHNICAL action in many markets spells trouble dead ahead.
Almost universal bullishness as the year began is under relentless assault
and will remain so. The "when hope turns to fear" moment is at
hand. Markets will zoom all over the place to PRICE in the collapsing social
welfare states and their unpayable liabilities.
Greece is just the next canary
in the coal mine and will be repeated over and over again until the Big
Daddies at the Bank of England, Federal Reserve, Japanese, European, and
Swiss central banks join their Greek brethren. This picture is clearly seen
THROUGHOUT the developed world as politicians and their special interest
elites have PAPERED over poor economic and financial decisions for DECADES.
Now these POOR decisions and STRUCTURAL issues are pushing them to the final
economic demise. The game is up; Darwin is at the door; it is now: produce
more than you consume and be globally competitive or fall to your demise.
Unfortunately, our leaders believe they can repeal the laws of nature and
they themselves are GODs, when in fact they are strong-armed dictators.
Look no further than
the latest budget proposal from the chief executive of the United States.
After expanding government by 50 percent with the 789 billion dollar
government expansion bill, misnamed stimulus (to fool the public), it
now calls for an expansion of government of 1 percent per year as a
percentage of GDP. Government as a percentage of GDP is leaping higher and by
2012 is projected to climb from 20 percent when the progressives took over in
2008, to 25 percent today to 30 percent in 2012. Take a look at this recent
chart (www.wsj.com) of federal spending
versus household income. It goes back to 1970, just before Breton Woods II
initiated the acceleration of government and unsound money (money that could
be printed out of thin air or lent into existence.) Next to it I set the
chart of household income properly adjusted for inflation from www.shadowstats.com:
This is PRECISELY why
incomes and the US economy have evaporated, this is the true picture of what public serpents,
banksters, crony capitalists and central banks have done to FLEECE the
sheeple they claim to serve. The only one served is them; the broad public
and private sectors are ROBBED! Now they are expanding the government budgets
by another 50 percent, as they are never satisfied and have no moral
underpinnings. This is a picture of creeping socialism and the DEATH of
capitalism, also know as producing more for less which creates expanding
wealth and rising middle classes.
Debt-to-GDP will be become
much higher as economic growth will continue to crumble under their harsh
grip. Total federal, state and local taxes now CONSUME 40 percent of GDP and
this is climbing vertically as the predators REFUSE to cut spending like
every rational business or person in the world is currently doing.
This is a fairy tale of
borrowing and spending with no provision for private-sector economic and
income growth other than projecting it to grow 3 to 4 percent.
In fact, the public serpents plan to lay 2 trillion dollars of new taxes on
the private sector in the next 5 years. Small private businesses are the
target of these new and economically-devastating new levies. That is no
recipe for growth; it is a recipe for economic disaster. It is a perfect
implementation of Saul Alinsky's "rules for radicals" and the cloward-piven.com strategy all rolled
into one.
"The more corrupt the
state, the more it legislates." - Tacitus
The architects of these
policies are radical academics and they are CLUELESS as to the source of
wealth because they have no experience in producing it. They are all
academics where theoretical thought rules. Look at this SHOCKING glimpse at
the naiveté of the crew currently RUNNING policy and government. This is a
chart outlining the experience of senior policy makers in past presidencies
versus the current office:
This about sums up the amount
of REAL experience these LEADERS have: NONE. Their ability to solve REAL
problems in the real world? NONE. Socialist progressive IDEALOGUES running an
economy that must operate in the REAL world. They have never held a real job,
never had to meet a payroll, never had to produce more than they consume and
they have no ability to create policies which do so.
Norman Matoon Thomas
(November 20, 1884 - December 19, 1968) was a leading American socialist,
pacifist and six-time presidential candidate for the Socialist Party of
America. As the Socialist Party Presidential candidate, he said this in a
1944 speech:
The American people will never
knowingly adopt socialism. But, under the name of "liberalism."
they will adopt every fragment of the socialist program, until one day
America will be a socialist nation, without knowing how it happened." He
went on to say: "I no longer need to run as a presidential candidate for
the Socialist Party. The Democratic Party has adopted our platform."
Recent surveys indicate as
many as 30 percent of the public support socialism; they have to, they no
longer believe they can support themselves, this is the front edge of the
"something for nothings."
The president is an empty suit
when it comes to anything but his MARXIST theories. Mort Zuckerman in a
recent article sums up what is transpiring in the executive branch:
"One business
leader said to me, "In the Clinton administration, the policy people
were at the center, and the political people were on the sideline. In the
Obama administration, the political people are at the center, and the policy
people are on the sidelines."
This is a recipe for the
disaster we now see unfolding as the leaders of the house and senate drive
the economy and the financial system over the brink. ON PURPOSE! These
criminals are in trouble -- the Health Care Bill was one deception too many.
It was actually first and foremost a "TAX and repeal your privacy"
bill. Now the tax revenue IS NOT coming in to hide the hideous levels of
spending.
The First Amendment be damned,
as the communications director at the white house remarked "we don't put
much meaning into the 1st amendment" of the CONSTITUTION as they
conveniently ignore it." He goes on to say people with cell phones have
no reasonable right to an expectation of privacy either. Rights to private
property died decades ago, but these new legislative proposals put it further
out of reach. Shades of George Orwell, the pigs and the ministry of truth are
all on plain display.
Mark my words, these
criminals will change or ignore the rules of congress and the constitution
and PASS HEALTH CARE and cap and TAX one way or another before the 2010
election. THEY WANT and NEED THE MONEY...
Has anyone told you that
president Obam@ recently ceded our sovereignty to INTERPOL, thereby placing
this international POLICE organization above all domestic police agencies, or
that another executive order is creating a NEW domestic police force at the
disposal of the executive branch (see www.lewrockwell.com).
Take a look at these two You Tube videos outlining the police state which the
United States has become: http://www.kingworldnews.com
...
The constitution means nothing
to progressive Marxists who are getting ready to implement their agenda
"at the point of a gun," as Mao Tse-tung would say. When the
economic collapse occurs they will be READY to go. The real terrorists are
inside the beltway in Washington DC and they claim to represent you!
Social contracts are not worth
the paper they were written on as Social Security slides into the red a
decade earlier than forecast and the trust funds have been STOLEN by corrupt
public serpents to buy votes. One by one these promises will be broken and
the "something for nothings" will increasingly become more violent
as they realize they have been had.
Buy and hold is DEAD for now
as shown by the constantly-expanding broad money supply and credit growth
numbers. Credit in the United States and Europe is in FREEFALL. Let's take a
look at credit creation, or should I say contraction in the United
States (courtesy of David Rosenberg and www.gluskinsheff.com):
How about the private sector
corporations?
Or all bank credit combined:
WOW, a collapse of over
approximately $1 trillion in a $14 trillion economy. This is not a recipe for
a vibrant and expanding economy; in fact, it's a recipe for a crashing economy.
Notice how the real oscillations in the above charts begin in 1971 when
Breton Woods II changed the developed world's reserve-backed currencies to
fiat currencies? Those are Wolfe Waves. (see Tedbits Archives from April 2007
when we IDENTIFIED the current debacle of collapsing incomes, aka the Wolfe
Wave)
As John Williams of www.shadowstats.com summarizes: "The
money supply is contracting because banks are not lending and consumers are
not borrowing. Deflation"...The FED is reacting to this by aggressively
expanding the monetary base. How aggressive?? How about a 56 percent annual
rate since August, 2009. So, the FED is putting physical money and reserves
into the system. We do not have inflation yet because the banks are not
lending the money out, or lending is shrinking. BUT, here is the important
part. The money is in the system. It is future inflation. The FED cannot and
will not pull it back."
"Do not be fooled.
Just because we do not have inflation yet, it does not mean it is not coming.
When it comes it will be fast and epic". John Williams, www.shadowstats.com
The Federal Reserve is
fighting this like tigers as their balance sheets approach new highs, while
they take down toxic assets and replace them with cash and US treasuries on
bank balance sheet (measured by money in circulation and excess reserves on
deposit at the Federal Reserve in the adjusted monetary base):
John goes on to say: "Monetary
Base Resurgent. The Fed again is pushing the monetary base higher. With
slowing growth in M2 (the broadest money measure published by the Fed) and
continued credit contraction, the Fed has to know that conditions are not
healthy or appropriate for economic expansion. These conditions also are
suggestive of ongoing difficulties in the U.S. banking system. Continuing to
act as though such were the case, the Fed pushed the St. Louis Fed's Adjusted
Monetary Base measure to $2.059 trillion in the two weeks ended January 27th
-- its second highest level ever -- 1.0 percent shy of the December 2, 2009
period peak and up at an annualized 56.1 percent rate of growth since the
near-term trough in the August 12, 2009 period." Thank you, John.
This is how
"Crack-up Booms" are BORN; deflation brings about money printing on
a scale which destroys the underlying FIAT currency and credit system.
Trillions more credit creation (money in today's world is CREDIT, and make no
mistake, credit is not money, especially when it is owed by bankrupt
governments) loom directly on the horizon throughout the G7 and developed
world as they try and PAPER over the unpayable and SAVE their
special-interest and banking masters.
It's interesting to see the
Indian and Chinese central banks pulling away the punchbowl, while the
developed world economies and central banks cannot. Over leverage is not a
problem in the emerging world as it is in the G7. Are there malinvestments
and misallocated capital in the emerging world? Absolutely. But the central
government could write a check for it and not even blink; $2.7 trillion
provides quite a cushion.
Look no further than this You
Tube video outlining the rape of the American taxpayer and individual
homeowners by the FDIC and the group that last year bought Indy Mac bank out
of bankruptcy from the California FDIC (the purchasers were ex-Goldman
Sachs.) This will really get your blood boiling as it ILLUSTRATES the depths
of corruption both within government and government....er, Goldman Sachs: http://www.thinkbigworksmall.com/mypage/archive/1/32275
(do not miss this video). The G7 governments are run for the benefit of
well-connected elites and special interests.
Stocks APPEAR to have
turned lower with outside down months in the developed world, in highly
significant monthly charts. Tops (with LOTS of distribution days in both
areas) in the emerging world occurred over the last six months. Fibonacci retracement and oscillators
turning lower from overbought levels. As my friend Dennis Gartman says:
"the markets around the world have retraced into the box which is the 50
to 62 percent Fibonacci retracement levels and attention must be paid" (www.thegartmanletter.com, I urge
you to subscribe). Let's take a look around the world as see an ugly picture
starting with the S&P 500 and the Dax index in Germany:
Trend lines off the March
bottoms are BROKEN, Fibonacci 50 percent retracements of the previous move
lower, outside down bars, relative strength index turning lower from neutral
levels, slow stochastics and MACD giving sell signals from overbought levels.
If you are long you are wrong. Now let's look at the FTSE 100 in the UK, and
then head to Asia and the Nikkei 225 in Tokyo:
Ditto to the above charts,
except the Nikkei rally couldn't even make it to a Fibonacci 38 percent
retracement. Are you beginning to see a pattern here? Mirrors, reflections,
you name it, it isn't pretty. Next Up Hong Kong and the Bombay Sensex index:
Wherever you turn the picture
is the same, the markets have turned or are in the process of turning lower.
Now let's look at the CRB index and Dr Copper -- solid barometers of
anticipated industrial and economic activity:
This is called a chorus
and if they follow through to the downside it signals a synchronized global
downturn starting NOW.
See the head and shoulders TOP in copper?
Let's take a fundamental look
at the S&P 500, from the standpoint of valuations as measured by the St
Louis Fed and the technical internals by Bert Dohmen (www.dohmencapital.com, a fabulous
publication, check it out). According to the Federal Reserve (not prone to
hyperbole) as of January 19, 2010 stocks are at their highest Price Earnings
multiples in decades, if not ever, at almost 150. These are also known as
nosebleed levels or "outer space." Look at the range going back to
1992. We are so far off the average as to be poised to CRASH. This is an
unbelievable picture; notice the P/E peak in 2002, this peak is 5 times
higher.
Look closely at this
chart, it is FRIGHTENING, and then consider what bubble-vision, the biggest
banksters and brokers along with the main stream press are telling you. This picture can be seen ANYWHERE in
the world. Anybody buying here better be prepared to BUY and HOLD for 150
years to receive their money back. Just like last week's look at bonds, the
risks are 30 to 50 percent and the upside is LIMITED. This picture can be
seen AROUND THE WORLD as investors chase stocks and bonds with fire hoses of
HOT money. They are looking for shelter from the printing presses or from
banks pushing up stocks to unload them on the next set of patsies (see
below.) Their research departments put out buy after buy signal telling the
public that STOCKS are CHEAP; they are not. Combined with the previous
pictures, the downside looks most probable starting sometime soon.
Now let's look at a daily
chart by Bert as it exposes the real underpinnings of this rally from the
lows last march:
"The SPY is the ETF
for the S&P 500. We like to use it because of the volume numbers. Note
that this chart of the SPY (daily) clearly shows the big decline in volume
over the past 10 months while the index and the ETF continued to move higher.
Declining volume in a rising market means that a virtual vacuum of buyers is
being created. Eventually, prices have to plunge to a level low enough to
attract new buying.
And now we have another
confirmation of the bearish chart: this month, volume has been rising as prices
declined. That is a typical bearish pattern..... Well, the S&P 500 got to
1150, just 30 points above our most likely target. There is a small chance it
may rally and exceed that."
He then shows a weekly chart:
And he further offers this
insight: "The chart of the SPY (weekly, in which each bar is one
week of trading) below is even more revealing. The important trading channel
(2 standard deviations) has been broken to the downside.
"Furthermore, the MACD
indicator below has crossed over to the downside for a sell signal. On a long
term chart, that's meaningful."
-Bert Dohmen, http://www.dohmencapital.com/
Bert's Wellington Letter is
always one of my favorite reads. It combines fundamental, technical and
geopolitical economic analysis all rolled into one, and his trading signal
services are fabulous too, I urge you to subscribe.
Now let's look at an S&P
500 analogue of several of the greatest bear markets in history, past and present
(the great depression and the fall of the Nikkei 225 from its bubble peak
several decades ago):
Analogues are always
interesting and can be quite accurate. If this one is correct, another plunge
lies directly ahead. As regular readers know, I am a black helicopter guy,
and I believe we live in a time when corruption runs rampant in the United
States as elites try to preserve the past at any cost and they will print
money and manipulate markets to foster illusions. The cost of creating money
is zero now, astronomical later when the money printing is PRICED in. On that
note I am posting a You Tube video of Charles Biderman of Trimtabs (Charles
is a longtime industry veteran and not a looney, like me). Charles is an
observer of money flows of all kinds, and this video outlines how most of the
moves in the S&P 500 since March 2009 are happening in the OVERNIGHT
sessions. This would be supported by the declining volume outlined by Bert in
his analysis above. Here is the comment from www.Zerohedge.com and a link to the
video:
"The United States
in my opinion is much more corrupt than most people think and I don't really
want to get into this rather large and interesting debate at the moment. But
Charles Biderman has some very interesting points which fall in line with my
thinking about how much of what is happening is really natural and what is
completely manipulated in the past 10 months of rising market prices".
-Zero Hedge
Must Watch 5 Minute Video: http://www.youtube.com/watch?v=cQyFxBG6dhY
I believe this to be true.
Next let's look at a great chart of the timing of the Federal Reserve's
exquisitely-timed MASSIVE injections into the markets (courtesy of Toby
Hansen at www.heavymetalinvestor.com
I urge you to subscribe, it's free) during options expiration week one in
which we find ourselves, NOW:
Notice how the injections are
beginning to FAIL recently. The government and the plunge protection team,
with the complicity and support of the biggest banks in the world, have
manipulated stocks higher as the public RUSHED into the bond markets (see the
last edition of Tedbits for analysis) taking both to UNBELIEVABLE
overvaluations based on earnings or the underlying fundamentals of the
bombs.....er, bonds.
Finally we are going to look
at what I call the kiss of death. The kiss of death is when a
long term trend line is broken, then the market rallies up and try's to rise
above the old trend line (kisses it) and FAILS signaling that the death of
the trend is CORRECT, here's the monthly chart illustrating the kiss:
They better
warm up the presses on the great REFLATION or it is about to undergo a
RELAPSE into the great deflation. Between the stock markets and bond markets
(see the last edition of Tedbits) the investor balance sheets are about to
undergo a radical downsizing. No matter, they will just mark them to make
believe, just as they have done to the toxic assets which are worth pennies
on the dollar. During these rallies many of the biggest banks and banksters
have repackaged their trash and unloaded a portion of their most toxic
holdings to their customers. Leaving them to hold the bag on the next
leg down!
Recent reports about the Greek
debt held by banks throughout the euro zone (add in the rest of the sovereign
bonds of Portugal, Italy and Spain and the problem mushrooms like a nuclear
blast) point to insolvency if they default. And it appears that Goldman Sachs
(http://www.thinkbigworksmall.com/mypage/archive/1/32996)
and new FDIC corruption in the housing industry syndicated a lot of debt and
helped them HIDE IT using swaps of one sort or another.
In today's Wall Street Journal
there is a report that Italian municipalities are CAUGHT in a derivatives
mess as well, equal to 1/3rd of Italian GDP. Investment banks SOLD complex
derivatives, which the locals DID NOT understand; they previously brought
forward revenue and soon BANKRUPTCIES. They are caught in a vise of corrupt
investment bank products where the client bears the risk and the rewards go
to the banksters. How do they avoid prosecution? The answer is obvious.
Capital flight out of the
country and exclusion from short term funding for the domestic banks means
the only source of "short term" funds is the European Central Bank.
But that does not include the rest of the PIGS (Portugal, Italy, Greece and
Spain). If they go so does the Euro and the biggest banks in the euro zone. A
recent Glen Beck outlined the 15 biggest creditors of the United States, from
lowest to highest -- it is an interesting picture:
15. Russia, $128 billion
14. Depository institutions/banks $154.4 billion
13. Hong Kong, $146.2 billion
12. Brazil, $157.1 billion
11. Insurance companies, $162.2 billion
10. Caribbean Banking centers, $179.8 billion
9. Oil Exporters, $187.7 billion
8. United Kingdom, $277.5 billion
7. Pension funds, $490.2 (includes gov't and private retirement accounts)
6. State and local governments, $528.3 billion
5. Mutual funds, $694.5 billion
4. Japan, $757.3 billion
3. China, (mainland) $789 billion, they own another trillion in various US
bonds.
2. Other investors and savings bonds $1.14 trillion
1. Federal Reserve and intra-government holdings $5.17 trillion and rising in
EVERY report.
Money printing is alive and
well in the land of government.
The bottom line of this is do
these people ever expect to be paid? And if so, will they be paid in anything
remotely resembling the purchasing power of the cash they deposited? Those
assets have NO intrinsic value and pay nothing, once they go to their true value
those holders are as bankrupt as the government which issued them. What will
happen when they undergo the soft default of the printing press, just go on
pretending as they are now?
These people are as
bankrupt as the borrowers in Washington; everybody is pretending they hold
money, but in fact they hold IOU's of bankrupt governments. Dominoes of
bankruptcy as the money has been spent for CONSUMPTION, not self liquidating
CAPITAL investments. Thus there is no income to pay the money back...
This list DOES NOT include
unfunded liabilities of over $70 trillion. Just who is the boss, Obam@ or Ben
Bernanke? Ben is in full control, and if it wasn't him it would be someone
else (the Rothschild's and the other illuminati owners -- government....er,
Goldman Sachs, JPMORGAN chase, etc.) approved by the Federal Reserve. Ben's
trip to capital hill before confirmation was just a formality to make sure
the fed stands ready to absorb another $5 trillion of debt with MONEY PRINTED
OUT OF THIN AIR. Remember the quote from the founder of the Rothschild's
banking empire and putative owner of the Federal Reserve? Let's go back to a
quote from the last issue:
"Let me issue and
control a nation's money supply, and I care not who makes its laws" -Mayer Amchel Rothschild
He does and they do. End of
story. The only caveat: the government gets unlimited credit as long as its
citizens pay the interest and principle. Of course they print it out of thin
air and consign us to debt slavery. Thank you, Washington DC. Don't you think
the Federal Reserve should FORGIVE these debts? Of course, but they won't.
These are the MOST evil, predatory people and organizations in the world.
Government Sachs is at the top of the list, above the law and in full control
of the US government, (and most of the developed world governments).
Governments as debt slaves and by extension the public they claim to serve.
DC better hope the Fed shows
up to print the money as the Chinese have sent a message to the terrorists in
the beltway by reducing their holdings of treasuries by over $34 billion.
This is not a subtle message, but you can expect Washington DC to ignore it,
as it is part of the plan to collapse the economy.... spend, spend, spend
until the creditors pull the plug, then print, print, print until dollar
holders pull the plug...
An example of
moral hazard slapped me in the face this week. A fellow, who will remain
nameless, has $5 million dollars all in the Municipal Bond market, a cesspool
of deadbeat borrowers when, if properly measured, owe almost $3 trillion in
on- and off-balance sheet obligations. I told him he was insane and asked
what he was going to do when the poo poo hits the fan? He said "I don't
worry; the federal government will bail them out." I choked. It reminded
me of what Dick Fuld of Lehman Brothers said to the Senate committee that he
couldn't conceive that he won't be bailed out. I told him that's what holders
of GM and Chrysler bonds said. Oh, did I forget to mention he amassed the
bulk of his wealth with a golden parachute from AIG! Can you say: Poetic
Justice?
I hope he has been good at
picking winners and losers in the past. He hasn't heard of Chapter Nine of
the bankruptcy code, used during the great depression, its how municipalities
DEFAULT. People believe that municipal debt is safe based on assumptions
which are no longer true! Make no mistake, some states and municipalities
will be bailed out and some won't, it will come down to who is from a red
state and who is from a blue state. Who has paid homage to public serpents in
DC and who has not? The new JOBs bill is just the next installment on bailing
out state and municipal government UNION employees. There is nothing for the
private sector except a thin gruel constituting less than 5 percent of the
total; the rest is government growth all the time.
In conclusion: Nothing
surprises me anymore, outrage is the norm. Just this morning it was disclosed
that George Soros more than doubled his LONG position in gold in the 4th
quarter of 2009, after having VERY PUBLICLY called gold a BUBBLE while in
Davos and in media reports. Do you think he bought the dip he caused? Where
are the regulators? The outrage in the progressive press? Or even the
report of this BLATANT falsehood?
To put into perspective the
enormous sums being thrown about and squandered by the drunks in DC:
California's budget deficit is about $20 billion (this is about the 8th or
9th largest economy in the world) which is equal to FIVE DAYS' deficits in
DC. Absurd. Ridiculous. The Budget deficit for the first 4 months was running
8 percent of last year's $1.43 trillion after the first 4 months.
Buy and hold is DEAD;
volatility is poised to expand and volatility is opportunity. Moves up and
down can only be rented and it's a traders world. You need to diversify your
portfolios with absolute return alternative investments with the potential to
thrive in these market conditions because the financial maelstrom is set to
continue. The worst is yet to come as nothing has been solved only pushed off
into the future aka "extend and pretend" with MONEY PRINTING, so
you also need to learn how to protect the purchasing power of your paper
currencies. This is what I do, if you have an interest please contact me
(http://www.traderview.com/portfolio_analysis_analysis.cfm)
Markets are poised to MOVE.
Can stocks make another rally attempt with poor internals as Bert points out:
YES. Other analysts I highly respect are also calling for short term rallies
in stocks, but nothing major. Fundamentally, nothing has changed; consumer
sentiment, economic measures and employment continue to decline at a slower
pace, or bounce along the bottom.
Profits year over year are up,
but don't be fooled; it reflects profits in the financial sector from 0
percent interest rates, non financial company profits are barely rising over
last years level. The REAL economy is flat on it back, under attack by
socialist progressives in the G7 capitals and frozen out of the money
printing and stimulus: ON PURPOSE. Only their special interest supporter are
benefiting, the stimulus er JOB's bill another deception while they fund and
expand government. While the REAL private sector shrinks and pays for it.
Blind ideologues and sociopaths running our futures into the ground.
Ground zero for the mortgage
markets lie dead ahead as the Federal Reserve withdraws its QE, and the
treasury TRYS to substitute Fannie and Freddie (that's why they lifted the
caps on the portfolios and extended the losses they can take) as lenders of
first and last resort in their stead. The shell game of DISGUISING money
printing continues. It's like a good murder mystery, only the victim is the
developed worlds' economies.
As a closing treat I am including
a link to Nadeem Walayats: "Inflation
Mega Trends Report"
(http://www.traderview.com/tedbits/InflationMegaTrends-NadeemWalayat.pdf), it
is fabulous reading for those who want to know what's going on, do we agree
on everything, no, is it great in bringing perspective to consider, YES.
Thank you, Nadeem. Just remember, paper is poison. In the next edition of
Tedbits: 2010 Outlook part IV, we will be covering commodities and natural
resources. Don't miss it.
Thank you for reading Tedbits.
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