HOT AIR BALOON

http://research.stlouisfed.org/publications/usfd/page3.pdf ADJ MONEY BASE IS ON FIRE.....they are fing nuts!!

"Current FHA loan limits are as high as $729,750 in high cost areas, and are set to expire at the end of the year and revert to lower amounts, greatly hindering the housing recovery process." Is this whatthe FHA was founded for? To get rich people into oversized homes?

We have U6 unemployment at near 1 in every 6 Americans, savings rate IS LOW but on rise, credit standards have tightened, Credit is contracting, real wages not growing, officially we have WIPED OUT all the employment from prior advance some OFFICIALLY 7.2 MILLION. I scratch my head trying to figure out how all these companies say they're doing well, beat "estimates" raise guidance and these poor slobs are out of the fervent economy.?? how so?

The rally is showing you one thing for sure, that RAMPANT SPECULATION IS BACK and this was the goal all along, while all this stimulus and liquidity are going into the NON-PRODUCTIVE part of economy....which breeds horrible imbalances and festering bubbles.

In the meanwhile if you take out the effect of overseas business from US companies reporting, even AMZN gets almost 50% of sales outside of the US, if you were to figure in a DEVALUED $.....I suspect you would get a VERY DIFFERENT PICTURE of current "earnings"....and in any case in MOST CASES what you see as a BEAT EXPECTATIONS is coming as REVENUES shown are FALLING....a HUGE portion of gains are coming from HEAD LOPPING.

INVESTMENT in the REAL ECONOMY has been falling for decades and we are paying the price, we THE CONSUMER GENERATION haven't much to offer, and we fueled our appetite of consumption with BORROWING....now that EVERY RAW DATA I READ SAYS THIS CREDIT IS DECLINING...you tell me how the market in just 7 months has priced in a return to an even higher over-valuation than in 2007 top?


This FICTION, PONZINOMIC SCHEME is great.....until the smoke clears, that will be one very narrow door many will be fleeing to get out IMHO

Duratek