geewow

Why a Market Crash Doesn’t Matter

I want to add, I personally believe that the nation will survive, but in a very different way than we have known over the decades. For most of us, it is my belief that investing in the market is a crap shoot. It is much better to invest in one's self, either to expand one's professional skills, and become for unique and experienced, or to use one's ingenuity to create products for the marketplace. Investing in one's self will likely create a better return than investing in the market, since it is likely to take a nose dive in the future, in spite of studying the fundamentals and analyzing the data within tradable companies. At least you know the truth about yourself. You cannot always rely on companies to report the truth.

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Why a Market Crash Doesn’t Matter

I believe so many investment consultants do not want to acknowledge the United States has entered a new paradigm, like it or not, whereby the Average American may not have a job within the next 18 months as companies begin to enter bankruptcy. So much for valuation or undervaluations, or earnings. Earnings may be fairly OK but having a cash flow problem, or no access to credit might not sustain the business.

Consumers have seen the light and are saving more (holding on to cash in case of a personal disaster), paying down debt, since they can no longer afford the high interest rates, while reducing their spending as their wages appear flat, or declining in light of commodity prices inflating.

The market looks good now, but I surely believe it will not in the coming year of two. There is no such thing as a jobless recovery, especially as more and more jobs are disappearing.

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10 Reasons to Believe That We're in a Depression

WOW, Mr. Clark, you sure have stirred up some comments! I have to agree with your assessment. The financial-bank holding crime syndicate has sold out the American people. The economy is revving up for a much bigger down turn next year and the year after. We have sold out to the biggest factory floor in the world--China. We have built their economy at the expense of our own just so we could go on big-time spending sprees, living above our means, borrowing from the banking - lending syndicate, either through our homes, credit cards or banks.

The standard-of-living will fall even further. For those who do not want to really listen to your words, I surely hope they are NOT one step away from losing their jobs, or customers.

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How Bloomberg Fabricates U.S. Housing Numbers

I am glad to see someone else finally calling the scam as a financial crime syndicate operation. I have been calling it that for two years.

The article is a good read and lays out what is being hidden inside the mortgage banking market.

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Bank of America, Citigroup, JP Morgan and Wells Fargo Stocking Up on Liquidity

Right! Bernanke is suggesting the mega investment banks continue their liquidity accumulation because the dollar will fall even further, and once that happens they can write off their toxic losses at rock bottom dollar values, while sitting on a huge pile of taxpayer supplied zero percent liquidity as the real economy falls further in the pit.

This is no economic recovery strategy, but more of the same bankster theft.

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The Secret Paulson-Goldman Meeting

What this continues to illustrate is that the financial-banking-inve... crime syndicate, meeting in Russia for a secret tryst with Paulson, further proves how deeply embedded this crime syndicate is with our executive branch and the Fed, as well as Congress. As in Russia, we in the US have an oligarchy.

Our government is the board of directors for this economic crime syndicate, and Congress is the where all the stackholders reside.

Until this is broken, nothing will change except the quality of life in this nation.

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Debt Monetization: He's Heading for That Small Moon

I thought the piece was well thought out. I feel the Fed engaged in near 0% interest to re-liquid the banking thieves that were bailed out and caused this economic collapse. They have incredibly fattened their balance sheets, gambled further on Wall Street again fattening their balance sheets without engaging in any significant amount of credit loosening but to pass out tens of billions in bonus payments. They market has been manipulated at the expense of the real economy.

Consumers are dried up. There will be no real growth. The dollar falls, and wages fall, too. The American worker has been thrown overboard in order for the investment banker thieves to be given the life preservers. If wages become third world, the country will be third world, as well. In-surplus nations are likely to go elsewhere to invest once the US consumer really stays home with their worth-less cash.

Bernanke's strategy seems to be to support and re-enrich his oligarchian pals in the banks, and give his middle finger to main and side street America.

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Is It Time to Recognize Reality?

Karl is once again putting forth an argument with solutions. The quote, "The crapper must get filled up before it can be flushed" is so true. All that the CONgressional members are doing is pushing the load down the road hoping they can make it through another election cycle without getting the boot. The president appears to so enjoy the national spotlight that he, too, cannot see the forest through the trees and is playing politics hoping to push the load beyond his second term.

Karl, unfortunately nothing will change as a commenter had stated, "Until the educated classes reach a 40% underemployment rate, nothing will change." I agree.

Instead of looking out for the greater good of our nation, and its economic national security, those that are getting by OK sit back because they feel they still have "theirs" in their pocket. Once they lose "theirs" the nation's pain will be horribly severe.

China will no doubt feel the pain of their unsustainable stimulus program. Unless their own people begin buying their over-supply of stuff, since we have cut back our purchases, they will feel the pain, as well.

Thanks for your honest writing!!!

More Trouble Brewing for Banking Sector?

I agree with miolaman, but judit doesn't get it yet:

"Please, no more negativity toward banks...they are here to say as much as you'll wake up tomorrow. So we better deal with the fact that they will turnaround, and will serve hundreds of millions of customers, like always..."

Pay off debt, and save your precious cash! You may need it! Downsize your lives and live more simply. Give up the consumer desires and buy what you comfortable need. Take a risk with your cash if you can create a widget of some sort that will supplement your earners.

The banks have been recapitalized off the backs of our working people. Monetized Treasury bonds and bills are being converted into debt that has been freely passed out in abundance without careful scrutiny or oversight. Bernanke does not even know the where, who and how his loans to foreign central banks have gone. And if so, won't say. He dishes out threats of market instability if he reveals his loan recipients. This is an economic crime syndicate!

Zero percent interest loans to banks and broker dealers, which then turn around and buy Treasuries for a profit and gamble in the market protecting Bernanke's ass have been jacking up stock and commodities prices (manipulation). This has been Bernanke's backdoor deal. There is plenty of liquidity but it is being used for the banker's personal use.

So, don't complain about the banks because they are here to stay? What a "cop-out". That is like saying don't go to a doctor because eventually you'll die. These banks need controls, supervision, and oversight. Bernanke needs to be audited and this action of the government selling off our nation's wealth to the Fed, turning it into unregulated monetized debt, so we can buy it back with interest is a complete dope-slap.

I say get the hell out of the market and teach these jerks a lesson. Take your cash out of the manipulated game, and place it in your local and regional banks. Pay off your debts! These market manipulators (Bernanke, Geithner and Obama) will then see exactly that the average investor means business when he/she demands reform NOW.

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Recent Bank Share Sales Could Lead to Industry-Wide Sell-Off

How anyone can ignore the fact that this market is manipulated is beyond my understanding. The Fed makes available billions and that same amount corresponds to shares purchased. Bernanke is pumping cash into the market through the back door with zero interest loans. He is recapitalizing the financial banks in order to cover his butt as Treasuries get sold, and soften the inevitable blow when the toxic mortgage debts must get exposed.

When the market begins to drop, it will be quick. Investors will be taking a big hit. Unless you are very vigilant in monitoring your portfolio, I would be very nervous.

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Spain Crumbles

Reaganomics, and Alan Greenspan's laissez-faire neo-liberal capitalism has poisoned the economies of many countries. World industrial production, consumer spending, and wages of average workers will continue to suffer dragging down these economies as those at the top continue take what they don't deserve. That appears to be the design plan.

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S&P / Case-Shiller Home Price Numbers

Unfortunately, what we are witnessing is a thin, fragile thread of good news immediately spun into a whole spool of good news. Such behavior is why they call it "Spin".

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Prime Mortgages Are Also Going Sour

Banks don't act swiftly on mortgagees that stop paying because once the bank takes possession, that foreclosed or short selling home is a liability and sits on their books as a foreclosed home. The banks don't want that showing. They wait as long as they can.

Beranke's latest crow that the economy is improving is so weak I cannot believe that the stock market rallied on such crap. There is no proof!

Americans are saving hundreds of billions of their incomes. When Americans save, they spend less. By spending less, commercial real estate begins to collapse. When that occurs more people lose their jobs and homes go into foreclosure.

We should have Bernanke say next that summer will last 3 more months. The market will rally again.

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Canadian Dollar Rattled by Shanghai Meltdown, Interventionist Talk

Mr. Dorsch, great article! Very thorough with your views on what is going on with the Canadian markets. One commentor stated correctly that the Canadians can work to create a functioning country since they are NOT so stupid as to start wars and waste precious resources maintaining them; and, they control health care costs by nationalizing their system, as well as control leveraging and "creative securitization"; and finally, hold on to their manufacturing base.

What is wrong with the US government is that that don't want to take a lesson from the Canadians. Canada is like the youngest sibling in a family of three. They tend to watch what the other two did wrong, and how they related to their parents, ie. other nations, and then, do it better, and with more sense.

Mr. Dorsch, are you REALLY George Clooney in disguise? :)

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GDP Management, Chinese Style

Yes, China is betting on the US continuing to buy $1T in their cheap goods. This is the juggling act Obama/Bernanke/Geithner is having with the Chinese. If the US cannot buy $1T in goods, then they will not continue to buy $1T in Treasuries and other assets. They will begin to dump. Obama is having Bernanke inflate the stock market so consumers believe they can begin spending again. This is a head-fake. Obama is trying to convince China the US is recovering enough for their satisfaction.

China is over produced and over stocked. They don't really care. They hope then that they could sell the stuff domestically. They could sustain such a policy for several years before their economy falters and slows with unemployment and more.

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