Jeff Nielson

Global Markets in Review: Waiting for Fundamentals to Play Catch-Up

The author provides a very convincing analysis of the extremely over-bought/over-valued state of U.S. equities.

However, what that analysis shows is that fundamentals CANNOT "catch-up" to over-valued equities. Therefore, the strategy supported by this analysis is not "hold and wait", it's "bail-out while you still can".

One very useful aspect of this article is that it puts to rest the absurd myth that "the markets lead the economy". While this may have been true at one time, with U.S. markets pumped-up by the PPT - and controlled by Wall Street (which literally is responsible for the majority of U.S. trading), U.S. market indices have become simply one more propaganda tool.

Those who have been fortunate enough to record large, PAPER profits in this fantasy-rally had better lock-in those profits TODAY - before U.S. markets crash back to reality.

Will Regulation Hobble Capitalism?

This article makes many good points, however it suffers from using an incorrect label. It is not the "limited liability corporation" which is the bane of capitalism, it is monopolies/oligopolies.

Most "LLC's" have no ability to pass their losses onto society and thus be indemnified. If that was true, we wouldn't currently be seeing a wave of corporate bankruptcies in the U.S.

It is only when the "too big to fail" label is attached (the calling-card of oligopolies/monopolies) that such power to plunder the wealth of society exists.

For two hundred years, anyone who has actually STUDIED "capitalism" new what was coming. As ALL capitalist economies mature, there is the inevitable rise of oligopolies/monopolies UNLESS there is rigid regulation (and enforcement) to prevent companies from acquiring such power over an economy (and the government).

Once this is allowed to occur, "capitalism" becomes an inherently parasitic system - where those with the power PLUNDER an economy, causing irreparable damage and wealth destruction.

Many pundits incorrectly refer to the growth of the Wall Street crime syndicate as a "failure of capitalism". In fact, Wall Street represents the ultimate "triumph" of capitalism: the ability of a small group of oligarchs to blackmail the U.S. government for $10 trillion in loans, hand-outs and guarantees.

The FAILURE which took place was the failure of the U.S. government to rein-in the inherently self-destructive capitalist forces which arise in a maturing capitalist economy.

The issue is not whether regulation will "hobble" capitalism. The issue is whether there is the political will to CONTROL the forces of capitalism to a sufficient degree that they do not destroy the U.S. economy (and that of other maturing, capitalist societies).

'Problem Banks' Soar as FDIC Tries to Ignore Problem

Thanks Jasper. Could you provide a link for myself and others?

Speaking of which, here's a good link for information in this area which I should probably be checking more often myself (lol!):
"Implode-o-meter" ml-implode.com/


On May 28 03:04 PM Jasper M wrote:

> Anyone who wants a list of real problem banks (MUch longer lis than
> the FDIC's) should refer to the work of Dr. Martin Weiss.