conceptwizard

Wild Weekly Wrap Up: Year End Roller Coaster Ride

If banks do not increase lending by 20% in 2010, a second credit crisis will beset markets. Stocks are way over valued having baked in a strong recovery with the help of TARP funds. This market reminds us of the alcoholic who has to have a drink upon rising and says he is not an alcoholic. All Wall Street knows is profits and they could care less about unemployment. The debasement of our currency means nothing. Speculation wages again with no thought of lower financial profits in the first quarter and a distinct chance of a second credit crisis. Ignored is the government’s manipulative presence in the market, or market fundamentals. Today’s speculation reflects the lack of trust, confidence and lack of fiscal and monetary discipline.

Stalling Out in July? Clear Signs of a Pullback in Consumer Spending

Nothing in Obama’s economic policy is directed at saving the US dollar as reserve currency or the livelihoods of the American people. Obama’s policy, like Bush’s before him, is keyed to the enrichment of Goldman Sachs and the armament industries.

The consumer cant spend because over 20% are unemployed/uneremployed. The rest are repairing holes in their portfolios or paying down debt. We will be deleveraging for years to come.

Can a Stock Market Meltdown Happen from Here?

A decline is imminent. There are two many dominos to fall yet. Commercial Real Estate is the next big shoe to drop. This will strongly effect the banks commericial lending portfolios. This would be a good time to short the banks.