Posted on 03/06/2009 10:35:04 AM PST by word_warrior_bob
It appears that Mr. Market is singularly unimpressed with the unemployment situation, which is actually showing a slowing in the rate of change in U-6, which is in fact positive.
However, "The Bezzle" remains unaddressed by government, and therefore, irrespective of anything else, the market will sell off.
The Nasdaq is down more than 2% at this point, and here's the chart of today's /ES thus far:
This will not stop until "The Bezzle" comes out. One way or another, it will come out.
That's more than a 3% move downward today in the first hour and a half from the top today - more than 20 S&P points.
Either Government will force The Bezzle out, or the market will force it out, and if The Market forces it out the consequence will be the destruction of millions of jobs that would otherwise not need to be destroyed, along with trillions of unnecessary wealth destruction.
The Government is incapable of keeping The Bezzle from being removed from the system, no matter what people in DC, including lobbyists and politicians would like.
This simply isn't up to them - they are not in control.
President Clinton discovered during his first term that The Bond Market in fact controlled his agenda, not the other way around. He was forced to abandon his audacious health care agenda when the bond market threw up all over it.
President Obama is in a much more precarious situation, in that this is not just about whether he can execute his agenda or not - it is about whether we will have an economy (and likely a republic) left in another year or so, and if he does not pull the cotton out of his ears in the very near future the answer will be "no", as we are approaching a point where we will suffer enough damage to the capital markets that a reply of at least the 1930s - if not the 1870s - will become inevitable.
Be warned Mr. President - we are on the precipice of a tipping point from which you and our economy cannot recover for a decade or more, if at all.
Protecting those who have stolen the wealth of millions of Americans, along with their homes and jobs, is going to become singularly unpopular in very short order.
Yes, George W. Bush was responsible (along with President Clinton before him and the Congress over the last 20 years) for the economic and market conditions that got us here. I've said that repeatedly.
You, however, are personally responsible for refusing to address the issues and continuing to foment and cause what is now turning into an all out economic and market collapse.
President Obama has had plenty of time to:
* Issue an Executive Order to defang the CDS monster, as I noted in the Ticker yesterday. * Direct the FBI (an Executive Department) to start going after the crooks who caused this mess, and make a very public statement to that effect. * Stop appointing tax cheats to the cabinet, stop backing those who are already in, and replace them. Volcker would make an excellent Treasury Secretary and I bet he paid his taxes. * And more.
The first job of a new manager, where he is brought in to clean up the mess made by the old manager, is to fire and replace all the incompetent people responsible for the mess, to sweep the floors down to the bare wood if necessary, and to lay down the law publicly that there is a new boss in town and the "old way" of doing things will no longer be tolerated.
President Obama has failed to do any of the above.
President Obama owns this, whether he wants to or not, and the market, as of this point, is now down more than 20% from his inaugeration date and more than 30% from the date of the election.
I don’t know, but reading Denninger is like watching a train wreck in slow motion, knowing how it’s going to end, and not being able to do a damn thing about it.
I keep reading it’s “the banks, the oil, the unemployment...”
BS...It’s the “so called” President..ZERO and his policies..PERIOD!
The market moves because of TWO things:
-Greed
-Fear
Smart people FEAR his policies therefore the market is DOWN and will continue. All this other stuff is PURE BS!
A train wreck seems like a good alternative at this point, he seems to be describing the Titanic.
Radioactive mutants. Radroaches. A barren wasteland with scorched trees and horrid scrub brush will hid the mangled corpses and gnawed bones of the lucky -- those who died early.
This is the reality. Get used to it.
Look out below....!
6,502.37
Change:-92.07
1:41pm 03/06/2009
What is “the bezzle?”
Μολὼν λάβε
As someone smarter than I has stated; perhaps we should stop assuming that a recovering market/economy is the intention of BO’s current policy...
This is the reality *I* see before us:
What is “the bezzle”
____________
http://marketplace.publicradio.org/display/web/2008/12/16/pm_big_bezzle/
You can't scare me: I lived in Cleveland.
In the future we’ll have to get past our food prejudices and survive on zombie-jerky. The Haitians say it tastes just like chicken.
I do not see it like that, however you look at it, the expectations are set so low right now that Obambi better change direction HARD or we are looking at 12% unemployment and similar declines in GPD by year end.
His Presidency is wrecked and he will take us down with him, the Narcissist effect is about to happen. I really hope I am wrong.
schu
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