"THE NEW NORMAL"

BILL GROSS at PIMCO

We are in the midst of a SECULAR (long term) GENERATIOANL BEAR MARKET which is trying to correct the abuses, malinvestments, over-leveraging, over indebtedness of the prior boom period. AS you may notice, the stock market has gone NOWHERE in over 10 YEARS! FACT.

If the CRONY Banks had been broken up, IF the TOXIC assets (loosely) had been recognized and dealt with, we might be in better position to move forward. But instead these same TOXIC assets HIDE on thebooks of these same ZOMBIE Banks at near 90% of their face value, because the GAO convienently suspended the mark to market accounting rule. SO ANY REPORTED BANK EARNINGS are ficticious. TO ME....making the S and P 500 reported earnings even MORE DUBIOUS and UNRELIABLE.

We have a LESS BUSINESS PRIVATE ENTERPRISE FRIENDLY environment, replaced by one of Government intervention, regulation, and businesses has cut way back on business investment and hiring.

I have an old childhood friend who lives in the Philapenes and one of his many businesses is website development and hosting which he does at a "FRACTION" of what others here charge. He also does blast email and phone room type operations.

We have turned from a manufacturng power to one of a SERVICE SECTOR economy which is less interested in FIXED BUSINESS INVESTMENT in plant and equipment, and one which is dominantly 70% Consumer Spending dependant.

DOES THIS SOUND LIKE A GOOD MIX TO YOU? Where our LARGE corporations like IBM, and INTC etc MSFT employ huge % of their employees overseas.

Yields on the long term bonds have collapsed again, why the FLIGHT TO "Quality" during the newly suggested BULL MKT? Overwhlmingly coined in a new Bloomberg poll?

I think we have a new BS market.....

Will not the coming XMAS shopping Season be a DISASTER for most retailers? Are we suddenly going to put back to work 4 million people? We have really closer to 16 MILLION people either unemployed, given up, working lower paying jobs, or accepting PART-TIME to think about...WILL THEY " SHOP TIL THEY DROP"?

With intervention we MAY have pulled out of Recession, but longer term, I don't think we have fixed ANYTHING. AS evidenced by the stock markets direction over the last 10 years, have we enterred a period where staying in the market over a long period of time has returned almost nil? DID YOU AVG DOWN at DOW 6,600?

AN IMPORTANT FACT to consider is that this decline BROKE the PREZVIOUS LOWS of 2002, NOT A GOOD SIGN for a BOTTOM at THIS LOW 666. IMHO

As money has gotten tighter and MILLIONS have lost jobs, those auto deductions/contributions into 401k plans have slowed or stopped, what then is there to FEED the market? THIS FACT alone troubles me looking for a sustainable bull mkt at this time.

SPX 500 earnings and MEAGER DIVIDEND YIELDS worries me, 2.1% vs 3.4% 10 yr yields!!

WHERE is the current FAIR VALUE of the stock market? Some say MUCH higher 1200, others say at least 1000, some suggest 750-850. Some perma bears say as low as 400.

WAS SPX 666 THE GENERATIONAL LOW? Well I know the VIX was at historic highs then, investors have been sold a bill of goods telling them we are "OFF TO THE RACES" NEW BULL MKT, NEW ECONOMY........world expansion is here woooooo.

Does it not trouble anyone the US Government is headed down the road to Socialism?
Gov owned businesses? Gov dictated growth? And a DEBT growing so fast that there is never going to be a way to pay it off? WILL THIS INSATIABLE APPETITE for spending your money not lead to hgiher taxes or falling benefits?

You tell me how we're going to pay for everything?....when we make next to nothing. HONDA and TOYOTA thank you for the klunkers rebate, most have woken up just now figuring they'll be taxed for it!

It's time for you to wake up and see through clear glasses, we may have a new normal.

D