To quote my teenage daughter - “DUH!”
Meanwhile back in Washington D.C. the backslapping and self congratulations continue. Way to go a#^*les!
“A shallow recession.” Got it! Check!
More like it...
Doesn’t Barry look stupid signing this bill. Let’s all celebrate! The market is down..... and soon our rating will be as well thanks to the fools on the hill.
S&P down 1.8%
Yield on 30-yr Bond below 4%. Here comes 2008 all over again. Get ready for another stimulus!
at this point Obama might well welcome a stock-market collapse, since it would take away the argument that he has to stop doing Socialist stuff or else the stock market will collapse.
ALL UNCERTAINTY IS NOW NULL AND VOID. wn ten years from now, We are now certain to have $26 trillion in debt instead of $28 trillion. Of course, the US will be insolvent long before that—but at least the uncertainty is gone.
Time to release the killing Bin Laden video to America so that the stupid masses get distracted from the impending collapse of our financial system.
Belly up to the bar, Congress. We’re buying!
You mean, they’re not singing Hosanas and passing around champagne just because the guvermint voted to print more money and then borrow it?
Bush’s Fault!
Pray for America
It might be useful, when speaking about it, NOT to place the blame on any party in particular, since BOTH have contributed, but just to point out that the growth in spending is unsustainable, and we need to start having a national conversation about that.
Savvy investors know this deal to “cut” spending over the next 10 years actually locks in a minimum of $7 to $10 trillion in budget increases in that period.
But they know none of that is real anyway because the President and Congress will just keep spending, spending, spending without regard for budgets, deficits or the growing national debt.
I’m surprised, maybe someone could fill me in.
Prices still not that low. I see some stocks that might be OK to buy, but no screaming buys.
bump.
“..If they do not stop...and it looks like they will not... the market will eventually stop them!”
Monday, August 1, 2011
The Con Game Continues
By Gary Kaltbaum | TradingMarkets.com | August 01, 2011 12:23 PM
http://www.tradingmarkets.com/stocks/commentary/the-con-game-continues-1577833.html
I just watched the President come out and state Washington was on the verge of $1 trillion in spending cuts over 10 years. I also heard him say it was the lowest level of spending since Eisenhower. I also heard him say things got done because of Americans whose voices Washington heard. HAHAHAHAHAHAHAH!
Let me get this straight, since Obama became President, annual spending has gone up about $1 trillion/year...and now we are going to get cuts of $100 billion/year...and of course, a committee to form a committee to look at other cuts. Again...hahahaha!
Nothing has changed. The con game continues. As I told you, there will be no default as the debt “ceiling” is going to be raised again, averting the made-up default. Yippee...yeah...yeah.
Before I talk about today’s nonsense, I must go backwards to show you how we got here. It was easy.
Take a few pretend conservative Republicans, a crisis that brought TARP together, a Democratic House, Senate and Presidency and a dishonest mainstream media and you have a simple recipe’ for $16 trillion in debt.
LET ME REPEAT THAT. THIS COUNTRY HAS INCURRED $16 TRILLION IN DEBT WITH NO END IN SIGHT. This has all been done on purpose.
Federal Government outlays have almost doubled in 10 years...thus your deficits. I don’t want to hear it was because of Bush tax cuts. The fact...and let me repeat...THE FACT is that revenues soared from 2003-2007.
It’s about the spending stupid and Bush was no angel! Under Bush, yearly deficits ran anywhere from $150 billion to $450 billion. That was bad enough. The Republicans could have done something about those deficits but did nothing. Back then, Republicans were ok with deficits. They did nothing.
Enter Barack Obama.
And I quote:
“When I’m president, I will go line by line to make sure we are not spending money unwisely!”
The President immediately rammed through an $800 billion stimulus and if I recall correctly, a $400 billion supplemental spending bill.
And I quote:
“We Can’t Treat Tax Dollars Like “Monopoly Money”
And I quote:
White House budget director Peter Orszag : “The President strongly believes that as the recovery strengthens and job growth returns, we will have to take the tough steps necessary to return our nation to a fiscally disciplined and sustainable path.”
Of course, all lies.
This President has taken the deficits into the stratosphere. Accrued debt was $6.3 trillion upon the Obama inauguration. At the end of fiscal 2009, accrued debt was $7.5 trillion. You know where it is now.
This from a new President that said he was going to be fiscally responsible. This also does not include his healthcare bill in which we are told will cost $1 trillion...just multiply by 5-10 times.
Deficits happen on purpose. This President promised to unwind the massive deficits but didn’t. This President said one thing and did the exact opposite. He could not have done it alone. The mainstream media, as usual, fell on their swords. No longer were they watchdogs, they were lapdogs.
Many who excoriated George Bush over his deficits now said deficits were not only needed but were too small.
I get a kick out of every time I see Paul Krugman call for higher spending. These people don’t even care that they are on the record from years before. And I quote:
“We have a world-class budget deficit,not just as in absolute terms, of course — it’s the biggest budget deficit in the history of the world — but it’s a budget deficit that, as a share of GDP, is right up there...comparable to the worst we’ve ever seen in this country.... The only time postwar that the United States has had anything like these deficits is the middle Reagan years, and that was with unemployment close to 10 percent.”
The deficit at that time in 2004, $417 billion.
Fast forward to the last year...and I quote:
“These days it’s hard to pick up a newspaper or turn on a news program without encountering stern warnings about the federal budget deficit. The deficit threatens economic recovery, we’re told; it puts American economic stability at risk; it will undermine our influence in the world. These claims generally aren’t stated as opinions, as views held by some analysts but disputed by others. Instead, they’re reported as if they were facts, plain and simple.”
And I quote:
“And fear-mongering on the deficit may end up doing as much harm as the fear-mongering on weapons of mass destruction.”
Deficits now...a measly $1.5 trillion. Yup...$417 billion is a horror show...$1.5 trillion is not a problem and just fear mongering.
Enter the tea party:
While the massive spending occurred, many became angry. Out of this anger, a new “party” was born...the Tea Party. Their words and their thoughts started to gain traction...so much so that they affected the elections in a major way. Republicans took back the house and almost the Senate.
How did the media react? Did the media embrace these ordinary Americans they cared so much about? Nope...they tried to turn these people into racists and extremists. I will not bother you with some of the quotes. They are nauseating.
The amazing thing is that these quotes didn’t just come from non-events like a Bill Maher but they were parroted on a daily basis by numerous hosts on a cable station owned by NBC. They were trumpeted by journalists from important newspapers like the NY Times. Imagine, people who care about the fact that this country will never ever be able to pay back these debts that have been incurred over the past decade...and have gone into hyperdrive in the past few years..and you are a racist and the extremist.
THE DEBT CEILING
There isn’t any debt ceiling. There is only debt and no ceiling. The debt ceiling is going to be raised again and again and again. There wasn’t any deadline. It was purely conjured up out of thin air...nothing more than a scare tactic.
That’s what these people do. There was a very good chance to use some leverage and all that was done is a measly $1 trillion cut OVER 10 YEARS and some sort of a committee on more cutting. Don’t p-—s on me and tell me it is raining.
I have watched this year at the State of the Union, Obama said “now is the time to act” on the debt. Instead, he produced another debt-laden budget. Think 97-0 voted down.
I have watched incredible scare tactics against the elderly by the President himself. The media said nothing.
What do you think they would have done if that was George Bush scaring the crap out of the elderly?
I have watched the word “compromise” used hundreds of times. The mainstream media has been blaming the Tea Party all week for not wanting to compromise. How was the compromising when the Dems had the White House, Senate and the House?
Does anyone remember, “we won...get over it?” I judge a politician by what he or she does with unfettered power. You saw what this man did when he had such power.
I have watched journalists call ordinary Americans terrorists. One called a good woman a slut. Why? All to protect an administration that has run amok with taxpayer dollars.
This President just does not care. When he had the ultimate power, he could have done wonderful things. He was loved by many. Those that were skeptical, were hopeful. He could have got anything done. He sure did!
Instead of using the bully pulpit to put this country on better footing, he has ripped the taxpayer apart for years to come. But we could not get here without the Republicans. There is no victory here.
As I told you last week, there would be no default. I am telling you now there will be no cuts. They will just be replaced with more spending.
The only hope at this point is that there are 300 million people in this country. Somehow, some way, we need to find almost 535 people out of that 300 million that will actually do something about what we are seeing...and that is the destruction of future taxpayer earnings.
This remains nothing more than a con game where they tell you to watch the right hand but they rip you off with the left. The con artists continue to treat you like you are idiots.
The ceiling is lifted once again with many taking victory laps. Washington is again acting like they did something good for the people. Washington only does good for Washington. Amazingly, I am reading that the left is mad at Obama for supposedly giving in.
I have news for the anyone on the left who loves massive government spending. You should be doing cartwheels and lighting cigars at this deal.
The markets will react well just to the fact that the fake default will not occur. Just don’t blink. If they do not stop...and it looks like they will not...the market will eventually stop them!
Gary Kaltbaum is an investment adviser with over 25 years experience, and is a Fox News Channel Business Contributor. Gary is the author of The Investors Edge. Mr. Kaltbaum is also the host of the nationally syndicated radio show “Investors Edge” on over 50 radio stations. Gary is also editor and publisher of “Gary Kaltbaum’s Trendwatch”... a weekly and monthly technical analysis research report for the institutional investor.
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Gary Kaultbaum Tuesday, 08/02/2011
http://www.tradingmarkets.com/stocks/commentary/yuck-1577848.html
YUK!
The market remains in trouble...and in spite of oversold conditions, continues to get rocked. A few more things sticking out for me:
The Transports are in imploding mode. Not good.
The German DAX continues to implode...not to mention other European markets. The DAX has been a pretty decent leader of moves.
Some stronger retail names now look like they are starting to roll over.
This is on top of all the other nausea I have talked about.
Again, a clean break of the 200 day moving average and the next leg down will be assured. A few indices are already below with the rest on the cusp. If that occurs, expect something akin to last year when major averages dropped 15-20% from their highs. The worry this time is that the Transports are indicating recession. I knew the economy topped months ago but looks like it is getting worse.
bttt