Posted on 07/08/2010 11:06:58 AM PDT by blam
This Market Is Ready To Fall Like 2008 And It's Only The Plunge Protection Team Saving Us!
Gregory White
Jul. 8, 2010, 12:17 PM
Damon Vickers of Nine Points Capital spoke to CNBC this morning about his belief that we're heading towards another downturn the size of 2008, and that the plunge protection team is what is saving us.
1:15 Real estate is going to be going down for many years, and the savings rate is of concern. The public cannot sell real estate because the market is bad, but they can sell stocks.
2:25 Financial service stocks are a bit overpriced, and the plunge protection team is saving the market.
3:30 It's common knowledge that the government comes in and buys when the market is weak.
4:45 This is a bear market rally, it should be sold.
(Click to the site of the article to view the video)
[snip]
(Excerpt) Read more at businessinsider.com ...
More like SCREWING us again for obama’s buddies at the banks!
We broke significant support at 9,800 last week. We sprang back twice over the last 2 days. The first jump of 200 was completely sold off by the end of the day. Yesterdays 250 bounce carried over to today, but things are starting to indicate a slide. Next support is DOW 9,500.
Well, here’s the reality of the situation: In the near term, nobody knows anything.
Someone will be correct about what the markets will do, but we don’t know who that will be. We never do.
Wall Street is littered with the names of one call wonders.
JP Morgan’s remark is still the best: “It(the market) will fluctuate.”
Beyond that it’s a roll of the dice.
Keep your eyes on the horizon, not on your toes. That’s a good way to get seasick, and scared.
There are none of the required regulatory filings for any entity under that name.
He says “Financial service stocks are a bit overpriced” but why believe any of their income/balance sheet numbers? Is everything off-balance sheet cleaned up, are all assets marked to market (or to marked to dream), are all liabilities recorded? This is all very doubtful.
I don’t believe there is any way to place a value on any financial stock. Everything appears to be hidden or changeable by the Fed or Treasury.
Check out the interview with Fleckenstein on youtube which echoes this point:
http://www.youtube.com/watch?v=P-o2AG8TFAE
Ooops. On the Fleckenstein interview, I forgot to mention that Fleckenstein is also a hedge fund manager (Seattle) and the interviewer is also from Bloomberg.
But in the end, NONE of them have a clue. They cannot see the Forest because the Trees got in the way.
Even a complete moron knows what history proves in regards to economic gains. Cut taxes, deregulate industry, give incentive programs, reward hard work and ingenuity. Instead, they do the complete opposite and in return, expect a positive outcome, which is in reality the very definition of insanity.
>>Even a complete moron knows what history proves in regards to economic gains. Cut taxes, deregulate industry, give incentive programs, reward hard work and ingenuity. Instead, they do the complete opposite and in return, expect a positive outcome, which is in reality the very definition of insanity. <<
This pretty much sums up our current situation and why we are in a death spin. Yet still only a few of us are willing to admit that the emperor has no clothes, though the numbers are increasing and will soon be a tidal wave.
Great advice.
Thank you! The markets are just like anything else in life: Some days are great, some are dreadful, most are average(whatever that is).
I do mortgage lending for a living. No one expected us to have 30 year rates hit 4.500%; a great example of what you posted.
Yo RexBeach—So you think the current Usurping administrating is a neutral entity. You think analyzing investment risk is no different today than it was prior to Onada stealing the presidency?
You think the usurping government’s intrusion on executive salaries, assigning race/gender quotas to the financial industry, GM/Chrysler takeover, Onadacare, tax and trade etc. are just business as usual inconsequencials?
There is a high probability of more DOWN stock price movement, but no one knows exactly when that will be. I won’t be buying any PUTS or SHORTING anything. However, if that monster BEAR does roar, it could be the buying opportunity of this century when the thrashing and gnawing ceases.
“This time’s it’s different”? It’s not. It’s merely a new set of problems for the economy to overcome.
There are always crises, for whatever reason, that cannot be forseen. Obama is one such case. He is a fever that will be broken.
This will pass, after a world of hurt, but it will pass.
Keep your chin up and keep working! :)
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