Thursday, May 27, 2010

BLACK CAT DEAD BOUNCE

GDP 2nd revision revised DOWN to 3.0% experts were looking for 3.3-3.4%

They SAY claims FELL.....but claims are ELEVATED at 460,000. With GDP receding like gingivitis is it not apparent the myth of V shaped expansion is exposed? With stock valuations elevated, IMHO the accidents will be to the downside.

END to Secular Bear Markets in history come with SINGLE DIGIT PE RATIOS ( we are near 22 on SPX ?) and near 6% SPX dividend yields (now in the 2% range)......5 yr yields under 2% 10 yr near 3%.....where is the CONFIDENCE?

2010 college grads to make less than 2009....more deflation. Are goverments now hesitant to keep pumping stimulus with DEBT ratios dangerously high? Words like AUSTERITY ring though the halls....debt to GDP ratio in the US is ABOVE the DANGER ZONE of 90%.

SO many issues, so little attention, we got a Pres who is like boobs on a boar.....Congress stupified like a drunk who mistakes KAOPECTATE for whiskey......tuck and roll, tuck and roll

Duratek

2 comments:

Anonymous said...

The money supply growth is at 30's depression era levels. Obama and company are freaking out and will do what they have been doing - print more money and create another so called stimulus.

Government needs to cut government spending by 30-40%; reduce taxes across the board; reduce the income tax to 5%; create a national sales tax to compensate for the income tax cut and push in other prodcutivity and job creation moves.

Won't happen. Time is running out before the debt problem and a currency crisis implodes the financial system.

Marc R said...

YES, time is running out.
YES GOV should cut taxes, NO gov should not cut soneding with a Depression looming over our heads, at some point YES, now is not the time but is what they may have to do with DEBT running 92% of GDP.....maybe a no win situation.