Posted on 06/05/2009 6:13:30 AM PDT by MeneMeneTekelUpharsin
The economy as I read it is not doing very well and hasn't been doing well for quite some time. I've never seen the situation nationwide as bad as it is now. The vast majority of students I teach in school will not do quality work or will not do much work at all. And, I've seen that in every school in which I've taught for the past 16 years (8 schools in all). I've been hounded from one school to the other because of my conservative views and for pushing the children to do better. When I finally started scaling my program down and began to lay off of the kids, I began to fit in more and have been at one school for the longest of any of them.
My investing philosophy has been that things can not hold up from what I've read and from what I've seen in the work ethic. Knowledgeable investors here know that as a result of the "short" investing strategy I've lost my butt. Can some one explain to me how everything can be working on the wrong principles and the markets keep soaring up in this country? I simply do NOT understand how it is all happening. The market is a leading indicator. How in the world are we going to have a good economy when all of the wrong decisions are being made? Someone please take the time to explain it to me.
All I am seeing is that laziness and incompetence and immorality is being rewarded and I simply do NOT understand.
Mark for later reading. thanks.
I was listening to WBZ the other night and they had on an economist (didn’t get his name) who had an interesting explanation. He said the government gave the banks and insurance companies billions of dollars expecting that they would cover their losses and put money back into the community by making small business, home and automobile loans. Instead, they put the money into stocks, driving up the prices.
Not sure if that is true but it was an interesting explanation.
BTW, Soros, et al could be manipulating. The 31 year old kid they put in charge of GM came out of that Soros think tank.
The result will not be a recovery, but economic apocalypse.
It sure seems that way.
Inflation. Read Jimmy Rogers interview on CNBC. He thinks the Dow INDU will go to 20-30,000 but will lag true value.
Ooops, I meant there aren’t many people stupid enough to “stay” in bonds or CD’s.
Some people still have money to park. They are not going to put it in things highly vulnerable to the coming inflation. Cash is not king.
Best places:
1. Gold
2. Other Commodities
3. The Stock Market
Worst places:
1. Bonds
2. Cash or CD’s
3. Teasury Bills.
The stock market already fell enough to compensate for a 30-35%% shrinkage in GDP.
Maybe (just maybe) the Stock Market is it’s own bubble, and it really doesn’t have anything to do with the health of the real economy.
Ok, theory??? : could Obama and/or Acorn be playing a hand in this? Shoring things up to make him look good.
This is just a simple theory, and no need for anyone to say "IMPOSSIBLE", with this POTUS anything is possible.
I been thinking about this for a while now. The bailout money, anyone know where it went,ACORN/then to Obama's bank account somewhere? Remember they won't show their books.
Takeover of GM, another where did the money go subject.
There will be little left of producing industry in the USA after Obama gets done. We have fallen to only 15% production based, from our former 90% production based economy. We are now 85 to 90% service based. (Which is unsustainable in rough economies.)
Foreign manufacturers will benefit most, as will former US companies who relocate in other countries. Oil Companies are moving to places like Dubai and Singapore in large numbers.
Oil will hit $85 to $100 per barrel before the year is out. Gold will go over $1,000 rapidly, as the effects of monetizing our currency and printing greenbacks kicks in later this year. It will be commodities and foreign markets that will keep the markets in business and the numbers we see now, are somewhat the result of that currently happening.
Churning by insiders and Wall Streeters holding large amounts of stock.
Can you say “Goldman Sachs”?
With the help of the government and the media, insiders and large holders are pumping up the market so they can unload their holdings at higher prices.
In the second half of 2009 and the first half of 2010, Alt-A and Option ARM loans will reset, requiring big payments by homeowners and leading to a second housing crash. Unemployment will have a huge impact as a significant number of those homeowners may not have incomes.
The downturn in retail sales is closing stores all across the country. Someone owns those brick and mortar buildings that the stores leased. Those owners have mortgages. Without a lessor paying them, they will default on their loans, adding to the mayhem.
Banks, that currently are terrified to loan money, will stop loaning altogether.
Meanwhile, in Beijing, the PRC decides to stop buying US treasuries and, in fact, tries to move them on the world market. Without any money to spend, Zero has the Fed print a veritable sea of cash. These twin hammer blows cause interest rates to soar and the dollar to plummet.
Americans start to realize that the dollars in their investment and banking accounts are becoming worthless and sell and withdraw them in order to trade them for anything of substance, i.e. food, precious metals, weapons, tools, you name it. The market balloon finally deflates as all that money is sucked out.
The banks, which have all been dead men walking, go belly up. The FDIC goes bust and says, "Sorry everybody.
All this to say, if you have sold out already, there's nothing you can go. If you haven't sold out of your short positions, you might want to hang in there at least through the end of the year and watch what happens.
And after all this: ZOMBIES.
We will all trudge forward, filthy and diseased from radioactive fallout, scratching the dirt for a single bent tin can that we will sell for a scrap of spoiled food. The radioactive wind will howl over us as we slowly shuffle, like zombies, in the sweltering and relentless sun. Our bodies will rot under our ragged, torn clothes, held together only by the dried blood we occasionally ooze.
Suddenly, all matter and energy in the universe will suddenly wink out.
And then things will get tough.
I think Obama has been manipulating. Two things I’ve noticed, every time bad news comes out it positioned as “not as bad as predicted”, even when it is really bad. All this means is the “predictions” have been artificially low to be able to claim some kind of blue sky. Second, numbers coming from the government always seem to be just a tiny bit better then the previous week or month, resulting in the same kind of coverage and then “revised” down the next week the news of which is of course buried on page 14.
Unless you think about the Zombies on Skateboards That When They Open Their Mouths, Out Come Killer Bees.
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