Warm_Paw

Friday Wrap: This Market's Running on Empty

It must be the infusion of dollars keeping this market going, because nothing else is. The earnings are a joke with the FASB accounting changes. Major unemployment, more oil than we know what to do with and the price keeps climbing, where the banks are with toxic assets is anyone's guess,the dollar should be tanking and isn't because the rest of the world has worthless currency (they've already went this route).
Bottom line is the country has offshored the employment and without a consumer there's no way this situation is going to buy itself out through inflation. The govt has pulled out all the stops without realizing this isn't something that's going to get fixed with good old fashion brute force or throwing money at it.
Wall St. continues to manipulate to get a fire going not realizing investors are staying on the sidelines because up is down and black is white. There's no stability. There's no logic. It's become a crap shoot. That does not create confidence.
Where this ends up - nobody knows.
I agree with this article in that the market is due for a correction. The fact that none is coming just tells me that when that correction comes, it's gonna be a whopper!
For that reason I remain on the sidelines. Who wouldn't. For anyone making money in this market right now, I'm happy for you.
Know this, the S&P grudgingly rises, but when it or the DOW fall, they do so with a vengeance.
Picking up pennies in front of a steam roller.
What do you invest in?
One day they have no where to store oil and it goes to $69 - the next day someone's highjacking a ship or Opec's cutting production and we're back to $75. I've fallen off cliffs with a more gradual slope.
The dollar is what the world's watching. Once the Fed HAS to raise interest rates, it's strength is going to wipe the markets out.
As if there was ever a currency that would have the credibility of the US Dollar.

Markets Holding Steady, Volume Picks Up

CNBC is cheerleading a rally.
Someone should remind them of this weeks comment when markets head into the next crash.
A 3% increase in used home sales is no signal banks have rid themselves of distressed assets. They haven't dealt with the assets because marking to market would let everyone know where we really are.
Oil's going higher when storage capacity is overflowing.
Obama talks transparency while investors are sold a bill of goods while no one discusses exactly where the top ten banks are in ridding themselves of these toxic assets.
Some clown attempts to buffer higher unemployment numbers as a one time event due to car company layoffs. He's lost the point - it's even more signifgant unemployment numbers are on auto layoffs. Those layoffs aren't temporary.
Yes- one time event ... a final event.
Next week Govt bills are going to be sold in major fashion to pay for this rally. Those bills take investment money out of the market.
How many of those bills are being bought back by govt?
I'm aware mainstream America watches half hour sit coms and can't find their butts with both hands, but the real investment money on the sidelines is held by people with a little more sophistication.
They can withdraw that sideline rally money as quickly as pulling a rug out from under an investor.
This is a sucker's rally.
Little has been discussed of Morgan Stanley or Wells Fargo.
All is not sugar plum fairies and roses.
August brings the conclusion of AIG.
Will it be a paragraph relegated to page 7 bottom corner?
The worst part, money is to be made buying in with the suckers.
Question is, when is the right time to get out before that rug is pulled?

Wall Street Breakfast: Must-Know News

Bank earnings aren't being reported as they used to be.
Earnings are over positive to hype the economy.
Notice this crisis centers around toxic assets on bank balance sheets yet no one discusses the percentage of toxic assets unwound for each bank, or the amount of these assets left on bank balance sheets.
We have at least two more death spirals dealing with the unwinding of these assets. The public's obviously not to know that.
The public's to take the hit buying bank stocks so they can dump these mortgage backed securities.
The very idea citi or Goldman want to give larger pay to bank execs has me wonder why the tax payer should be on the hook to bail them out.
Let them fail. Greedy pigs should get slaughtered. As for throwing the economy into a tail spin, it's inevitable.
These banks need to go the way of the car companies.
The real challenge is bringing manufacturing back to America.
Jobless people don't pay taxes.
The few working people won't be able to shoulder the burden.
Of course we could raise the tax rates on bankers and right the countries woes.

Is This Rally in Its Final Innings?

Good Article!
Things haven't made sense for a while now.
Did the Fed think markets would bid themselves up to 2007 levels and allow banks to unwind their MBS' without any kind of natural pullback?

Is Goldman inflating oil at a time when the oil traders are going to beg for more production cuts on May 29?

The employment numbers say people are still losing jobs. I grow weary of hearing the loss numbers being held up to show their less severe. Their severe on top of severe.

Everybody wants a bottom but they don't want to ask the question that will bring those green shoots, then do what has to be done to get us out of vapor lock.

The question is:
What percentage of bank's balance sheets are toxic asset and what percentage are healthy capitalization?

Next, banks revalue their toxic assets or unwind them by selling them to the govt.

Until that happens, we're in a bear market rally that's getting hyped by CNBC who like to interrupt anyone who has a logical argument to say things are not as rosy as they seem.

Investment houses are on the sidelines.
The public will take yet another haircut until the above steps are taken. Greed keeps deluding the public into believeing this next rally is the sideline money coming in.

Smart money isn't going anywhere near this market till fundamentals are sound. Smart money knows the powers that be - will and do lie to the public to sway public sentiment.

Hey Public - see Dodge - there's your green shoots for you.