First, lets start off with a link: TrimTabs CEO speaking on Bloomberg about US government cash involved in the recent market rally. Let this video's theme (propping, disguising) carry through as you continue reading...
Lets face it maybe the world should just start over, no problems have been solved only patched. The developing world has followed the "United States plan for success", which has recently as you know shown quiet a bit of holes! The world wanted to play our game, they wanted a piece of the action, the US being capitalists said, "Pay me, ill show you how we did it." These salesmen of the "United States plan for success" never told their developing country clients, "We have no idea what the hell we are doing, and on top we have have no exit plan." As soon as SHTF last fall the salesmen turned their backs on these countries, you really think Greece was their only client? NO, we failed they eventually fail. It is our MODEL, we have the instruction book right?!
The hunger for quickly realized profits, leverage and moral hazard has pushed the entire world into a giant pool of toxic waste. The toxic matter is still not on the balance sheets, the assets are all still floundering, ie real estate. On top of this you have political finger pointing, China threatening to sell US treasuries and a ridiculous "HOPE rally" to boot. The perfect storm is brewing once again, their is thunder in the distance.
The recent Greece and Eurozone bearish speculation as of late is the inspiration for this post. In a nut shell i believe we should let weak enterprises/countries fail( i know that topic is a whole post in itself, but bare with me), THE strong will pick up the business left over from the failed. You never learned anything as a child being rewards for bad deeds, classical conditioning is still a practice which can provide steady results. Placing wild bets on newly engineered financial products modeled on a 10 year back test is NOT what you call a "plan for success". WE need to get back to the basics, start from scratch we cannot keep being rewarded in the search for short term profits. I want to see this market trend for 20 years, the last 10 years have been a scratch trade, a total waste. Headwinds are here, lets fix this problem so we can move on instead of placing all the garbage created from the last profit binder into another scheme to hide losses.
DO you miss him yet Bush billboard.... i might not miss Bush, but i do miss ... red.