Run For The Hills!
Run For The Hills!
They keep pretending that the underlying problems aren’t there.
Warren Buffet drops 5 billion on BOA and all of a sudden the bad loans are gone.
It cracks me up.
Monday they say consumer confidence is up in July (School supplies) so the markets rally.
Today they say consumer confidence in Aug plunged, but there is no reciprocal in the market.
The wallstreet guys are still floating the idea that there will be a Fed stimulus.
It’s just been bad news bad news bad news.
I don’t see any relief on the horizon.
Just wait till all the student’s loans go into default. Then you’ll see panic.
btt
The FOMC is meeting again toward the end of next month (QE3 then, more free money for government and all who suck revenues from it). My best guess says for now, that the next noticeable ugly bump would be more likely sometime around the first or second quarter of next year. But panics...those are hard to forecast.
None of the fundamental problems that caused the crisis of 2008 have been fixed. The world financial system is still one gigantic mountain of debt, leverage and risk.
And in Washington DC, we can expect no change, and therefore we have no hope of riding out the coming financial tsunami that will wash over our shores without huge damage we can't afford to fix. The time bomb is ticking, yet when the Congress comes back after Labor Day I predict nothing useful will happen for the rest of the calendar year. President Obama will outline his "latest ideas" (CBO: "we can't score a speech") for turning our economy around: more of lame same. Meanwhile, the Executive Branch regulators continue to pour toxic waste into the business environment. (Interesting that some of the worst regulatory toxic waste is coming from Obama's Environmental Protection Agency. I guess EPA only cares about the trees.)
And if it gets bad enough, I expect things will get nasty indeed.
That said... TEC and similar sites are there to make money by driving panic. DON'T PANIC. Be prepared and keep your wits about you - your country will need you.
Here's the scary part: just a nuclear conflict between China and India could kill twice the number of dead in all of World War II from a nuclear exchange. And that's not counting the additional dead as the "mini" nuclear winter from such a conflict will severely cut agricultural output and billions around the world starve to death.
Debt, in a variety of forms, has been used as money (or, more accurately, as a money substitute) since 1913. There has been no real money in the world for 40 years. The "bubble" merely defines the expansile nature of debt without repayment.
Fiscal policy and monetary policy are merely tools, like a hammer.
If I give you rubber nails and tell you to build a house, how heavy your hammer is, what shape it is, how long the handle is, will be of no consequence.
That's the situation we are in. All the policymakers have to work with are rubber nails.
It's amazing that this "system" has lasted as long as it has, but there was a lot of power and wealth in the West to be consumed.
The jig is up.
It has been being predicted and has been a long time in the making, but it is looking more and more likely that the Global RESET button will be pushed very soon.
TEC? The Episcopal Church?
RECESSION? IT'S A FULL BLOWN OBAMA DEPRESSION!
That's what the Fed is for; they can easily pump 50 billion into BoA by zero interest loans that BoA loans back to the government (i.e. politicians). Everybody wins except the dollar and savers and long term investors and economic viability. But I wouldn't bet against Buffet this time, he'll get his 6% / year, maybe next time.