changeisreal

After Presidential Pause, Markets Could Trend Higher Through Thanksgiving

Mr. Saut:


I thank you for some of your candid commentary on the markets. I think you lead a good group over at Raymond James

The Honeymoon Is Over: Gauging the Market with an Obama Presidency

You know, everyone, I think this is a very good article actually. It doesn't matter who you voted for or even if you are naive enough to believe Obama is a solution to all the problems.

Free markets? You had free markets and look where that got us? 40 to 1 leverage? Everyone using fake appraisals to spend more debt? No REGULATION!!

Read the author's other article on $60 Trillion Nightmare of CDS. That's a shining example of what happens when you just allow Wall Street to have free markets and ZERO REGULATION!

The point is what are you going to do if you are trading the market? Walk away? Quit? Refuse to participate?

I think what people don't want to admit is that this problem was brewing since the Clinton administration in the 90's and finally popped under Bush. So there is no one side is better than the other.

Wall Street can't play games with job numbers or hide the problems of the economy anymore. someone has to fix it and the one difference is that Democrats are expected to fix it for their own political survival.This is why people feel optimistic because they know Dems won't be in office long if they don't help middle America.

Remember JIMMY CARTER?

Paulson's Poker Face: A Bluff by Going All In

Just wanted to let you know that I originally wrote this article and submitted it after the markets closed on Monday, September 29th although it was published today.

Obviously, the 400 point window dressing and technical bounce on Tuesday didn't occur yet.

As I write this, the Senate did the right thing and passed their branch of Congress by an overwhelming and convincing approval rate of 3:1.

Like many of you, I don't like how we are in this mess but I strongly believe that action must be taken to prevent a complete market meltdown.

The consequences of what may portend would only punish the average retiree, investor, small business person and, eventually, job cuts would follow in a dangerous deleveraging process.

It seems to be that the choice is either a protracted recession that is workable or a depression that cleans people out. Neither choice is what we want but one is clearly much worse than the alternative.

I don't think this plan is perfect but it is better than simply doing nothing and standing by with a bucket of water in your hand while the house burns down.

How successful or not this plan will be depends entirely on the very select few that will attempt to facilitate liquidity in the markets. I will write further on this later once the bill passes with my own criticisms, but imperfect as it may be, it is better than nothing.

As for the first comment posted, you may have misunderstood what I was saying. I was stating that I am surprised that Democrats are supporting this bill when their entire political platform is on the basis of accusing Republicans for being the ones held responsible.

I think with so little time until election, Democrats could have easily stalled the ball in the fourth quarter and allowed markets to collapse to play politics and win an election. I am relieved that they didn't and decided to take action by putting country over politics first and foremost.

I think blame is to be attributed to both parties because none of this mess happened over night, this was long in the making and now the consequences are being felt.