Thursday, September 30, 2010


"The beginning of the end for nearly every debt-ridden country has always been the attempt to pay for past expenditures with newly-minted money. It always starts innocently enough and seems like the right thing to do, but soon the programs grow and grow, and eventually the currency of the country is destroyed."

longwavegroup K Winter Warning
" By comparing the four autumn economic waves in the United States chronicled above, we can discern a commonality that whether the primary focus of an economic wave is government land sales; railroad construction; industrial stocks/equities; or high tech/internet IPO’s; the bubble patterns are always the same. The natural progression of a bull market – rampant speculation and excessive debt creation – always leads the long term business cycle from the Kondratieff autumn to the bursting of the bubble and into the economic depression of a Kondratieff winter – deflation, high unemployment and economic contraction. This is why the current winter cycle will end badly; because the massive debt accumulation has yet to be expurgated from the American economy. Will we witness the bankruptcy of U.S. states and municipalities, or even the U.S. itself during the current Kondratieff winter cycle?"

Folks, and this is KEY, they have NOT eradicated the DEBT from the system, THEY (FED) have only either HIDDEN THE DEBT or MOVED THE DEBT (to FED balance sheets, GSE'S).....this is why lending has remained DORMANT and the economy is at BEST stuck in neutral, it certainly is not strong enough to CREATE JOBS.....there are anaddt'l 3.5 MILLION homes to be foreclosed a 3-4 year supply....certainly this back log (JPM suspeneded 50,000 foreclosures is in the news) of supply will SUPRESS housing prices. 24% of recent SALES were Foreclosed Homes.

Documentation showing how POMO (FED Permanent Open MARKET OPERATIONS) is MANIPULATING the stock market, there is no such thing today as a FREE MKT SYSTEM, there in here IMHO Lies some of the reasoning that the market no longer makes any sense, we have had about 26 90% volume days since APRIL! Market has MANY late day bumps, rallying on horrid news, little improvment in fundamental data, record lows in some Treasury note yields, gold driving to new highs and rallies on diminishing volume....something is broken.


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