Posted on 08/05/2009 10:17:44 AM PDT by arthurus
With all this blather about green shoots and economic recovery and new bull market, I thought Id inject a little reality into the collective financial dialogue. The following are ALL true, all valid, and all horrifying
Enjoy.
(Excerpt) Read more at seekingalpha.com ...
1. Obama and the Dem controlled Congress
2. Obama and the Dem controlled Congress
3. Obama and the Dem controlled Congress
4. Obama and the Dem controlled Congress
5. Obama and the Dem controlled Congress
I can’t see anything wrong with it.
The Obama dynasty has continually interfered with the production of wealth. The mere threat of pro-Union health care reform is crushing real recovery: add on the mere threat of removing the Bush tax cuts, the likelihood of a new CapNTax bill, the GM disaster and so on, and we can see that businesses are paralyzed and unable to grow.
The banks have been given loads of taxpayer money, and they have been pouring that money into equities. And I can’t see that anyone else has. Right now the Banks are the market, and I can’t see that changing. Because no-one else has spare money to invest.
The Depression should have started some time back. IMO it’s been postponed, or rather masked, by all the funny money in equities.
But if Obama declared a tax holiday and cut spending the depression could still be avoided. Which is another way of saying it won’t be.
I went all cash 10 days ago. The big one is coming, sooner than you think.
Investment Banks, sorry for the confusion.
I am channeling a report I read on the Daily Crux, but danged if I can find it. If I can find the link for you I will post it up.
If it turns out to be something commercial-in-confidence from Stansberry then I will just be mysterious.
And if I’m flat-out wrong I’ll admit it :0)
Goldman Sachs has engineered a sweet deal enabling them to bet on equities at higher leverage.
Thanks. I’m interested in seeing the article if you ever find it.
Yes, the investment banks are benefitting from a low cost of funds right now. They place collateral at the Fed and can borrow against it at very low rates. This allows them to lever up quite a bit, but whether this is driving the stock market materially higher is another question.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.