Saturday, September 25, 2010


ANother rousing day in the stock market, which began with the famous hedge fund manager telling everyone on CNBC that he was getting LONG STOCKS (that wasn't self serving was it?).

We already know how this is taking place while the economy spits out the weakest data from any Recession in history and instead of gaining momentum is weakening....and even after 2 years needs debt monetization, 0% rates, stimulus, cheer leading and pumping.

But the FED has and will continue to carry out this monetization,, and manipulation of the stock don't fight 'em join 'em? FORGET FUNDAMENTALS?

Over the last 10 years, stocks have rallied with rising rates, and declined with declining rates......stock market rallies in the good old days were fed much by reallocation OUT of BONDS and INTO stocks.....401K contributions and higher cash levels in mutual funds which could FEED stock purchases.

But cash levels are near historic lows in mutual funds, Money continues to flow INTO bonds not OUT OF!!?? and many are taking money OUT OF 401K's, not putting INTO them as so many doing ANYTHING to stay afloat, include the MILLIONS w/o jobs who certainly are NOT buying stocks.
That leaves me to WHO benefits most from this rally? The INSIDERS, the 25 execs at CITI (the near FAILED BANK!) who are getting huge MILLION $ plus bonuses, and the wealthy.

The average American had MOST of his wealth expressed in HOME EQUITY, of that about $7 TRILLION has been wiped out at same time stocks are LOWER than they were 10 years ago!

And don't forget the US $ continues to LOSE PURCHASING POWER, causing MANY THINGS YOU NEED to go UP in price (bad inflation) and things you can live w/o go down (flat screens).....the US STOCK MARKET epxressed in GOLD has NOT RALLIED since has gone NOWHERE, the current rally is but a mirage.

Money was created, was not existing to BUY bad assets, money continues to be printed to fund GOV DEBT/DEFICITS every year further indebting American public.....$TRILLIONS of wealth was taken away from PUBLIC and given to FINANCIALS......NO ONE IS IN JAIL FOR THIS........THE BIG BANKS created the crisis, the BIG banks are benefitting...where is the justice in that?

Enjoy the manipulated stock rally as economic indicators continue to whither, few jobs created,and the financial system responsable remains roughly the same.

I am NOT saying stocks can't go higher, obviously they can, but I don't like the values (do like the action) and I do know Secular Bear Bottom consistant with past Bears has not been met.

The way action is diverging from Bond most troubling.



Anonymous said...

Average American? Look at what the eites think about the average America. Also to remind you the word of Goldman Sacks CEO "we are doing Gods work".

They think of you as mere insects. Slaves. What ever you want to call yourself. Its been the same throughout history the average guy gets the shaft.

Marc R said...

Average is more like the MAJORITY.....I don't mind getting hit over the head....but I won't bend over.
Contraction of credit from the levels we had unavoidable