The markets are having a really hard time dealing with the end of QE2. You could see a scenario where the market gaps down tomorrow, has another big loss and then starts to rally from there. Potentially even an intra-day reversal that gives you some kind of semblance of a pivot point. But I think that without the Fed in the US coming in aggressively with a QE3, that is going to be problematic, I think we have lower to go medium term.
You have two things going on. The Reality, the mathematic reality of the macro situation that the Global economy find itself in. Then there is the perception of the reality, which until the last couple of weeks has been far different than the underlying realities have been because of the ability of central banks to print money and keep stock markets, specifically stock markets from doing exactly what they are doing now. So I think there’s a reality check here and the downgrade of the US credit rating means that you are now seeing that if you pull back the curtain and expose the wizard behind pulling switches, the underlying reality is that they have not done anything to address the real problems of the macro economy. Specifically in the US and that extends out into the Globe….read more HERE
What I can get my head around, is how the US tanks economically and very publically, and our dollar takes a nosedive against the US buck, after riding high above it for so long.
and Barry still thinks the solution is to borrow and spend even more money because he is so smart he knows stuff ordinary folks don’t.
This ain’t over by a long shot. There is still massive entitlement spending that is unsustainable and has to be chopped.
” There is still massive entitlement spending that is unsustainable and has to be chopped.”
and the USA needs a real leader, that leads from in front of the pack
Re: Skip & the fall of the Loonie…
It has to do with a drop in commodity prices. The value of our dollar is tied to oil, potash, etc, and they all took a major hit over the weekend. Hence the fall in our dollar.
It seems that everyone expects fiscal reality to rear its ugly head and that ‘things’ will be fixed. I’m sure that is what most people want. Unfortunately the ‘chattering class’ make their way in life by explaining what is or should be. First they won’t take any responsibility for living beyond our means but more importantly they cannot allow true fiscal conservatism to take hold. If it did the vast majority of them would not have anyway of feeding themselves, let along get rich.
If you are an inherently unproductive enitity then you must find or create an evironment where you can live off other’s production. This has not changed since the first 120 pound Neanderthal came up with the bright idea of ‘calling on the gods’ for a successful hunt. It worked then and it does still today.
Shorter: “The rubber band stretches only so far.”
Weldon makes the case near the end of the article the Canadian is heading down down down. Remember it was in the low 70’s during the 2008/2009 collapse for the reasons the other James points out.
Also, a couple of interesting reads are: Violent Correction or Primary Bull Market?
and Peter Schiff’s
The Tipping Point
The initial reaction to the downgrade is risk off. That is to sell stocks and commodities and buy US treasuries. This is unfortunately this time running toward the problem as it is the US government itself that is the cause of the problem. Once it is realized that inflation thru more money printing is the only way they see out of this then their will be a funds flow reversal away from the government and towards commodities and stocks. This will happen despite the weak economy of the US.
If it wasn’t racist, I would say that Obama’s role is that of an organ grinder’s monkey. He covers the country constantly with his tin cup out collecting money from people who want favors from the government.
Capital losses in the six figures grab the attention of even an older, same old same old investor. On its way back up as we speak.
However this time when Barack Obama frequent “bully pit” speech fails once again, the Einstein sanity criteria, oft quoted in this place has kicked in.
I have moved all global investments to “blue chips” dividend paying equities based in Canada. This includes dropping American Equities for the first time in forty years of investing.
The Group “screw” of Wallstreet, Rating Agencies, Pundits, a populace President, we are entitled to our five week vacations Senate Majority leader and coupled with an Eunach Speaker of the House is a coupling too many.Cheers;
Coupling
In this case, however, the organ grinder’s monkey has a gun and doesn’t accept “no” for an answer when it comes to “donations”.
In this case, however, the organ grinder’s monkey has a gun and doesn’t accept “no” for an answer when it comes to “donations”.
So, I have some money in my savings that has to be transferred to my RRSP in order to piss off the taxman, where should I put my money? Or maybe just wait and see. Us middle class guys like me tend to react rather than act as our (spare?) dollars are far and few between. Gold stuffed in the mattress is too lumpy an option.
As far as the useful idiot down south is concerned, I still say he is a puppet and is only doing what he is told. Real question is who is pulling the strings and for what ultimate purpose?
Imagine the mess the next president will inherit from Obama and how he (or she) may fix it if possible with as little whining as possible.
Texas Canuck at August 9, 2011 2:09 PM
Yes, Obama is a puppet. George Soros is the puppet master.
http://www.dailymail.co.uk/news/article-2023809/Did-George-Soros-win-10-1-return-S-Ps-US-credit-rating-downgrade.html#ixzz1UUJZSSRp
@Osumashi…I remember when the US was thought to be down and out in ’78/79. All it took was the right president to give people hope and some common sense policies…and we had the economic phenomenon of the ’80s and 90s. Never underestimate the resilience of the American people and businesses when they are allowed to keep their own money and spend it as they wish. Remember Microsoft and Bill Gates were unknown in the late 70s and personal computers were only seen on Star Trek.
Unfortunately, we don’t have the same entrepreneurial spirit in Canada. Many of our businesses big and small require gov’t money to succeed.
Just who thought it was a great idea for Obama to give his speech while the Dow was still trading? -the ticker split screened with him. Did they really arrogantly think that the Dow would move upwards as he was speaking?
Yeah yeah- the oceans will slow their rise and the planet will begin to heal- blah blah…
@pukster: That was right out of the Jim Carey movie..the remake of Fun with Dick and Jane. Real life imitates art…LOL
Awesome Pawlenty political ad:
http://tinyurl.com/3p72q95
Put your money in physical silver, or buy a fund that shorts the market. (This can be done inside a retirement account, while direct shorting cannot.)
Agreed, favill. Who will be the next Reagan?
Who will be OUR Reagan?
For your evening enjoyment. Obama the musical:
http://247comedy.com/musical/obama-the-musical-12-08-2010
OSU
Sarah Palin is the ONE.
Why? One word: Ballz
I’m not saying she’s the next POTUS, but she is the oracle for common sense as far as I can tell.
For as “stupid” as I’m assured she is… word for word(perhaps syllable for syllable), NOBODY packs the same punch. Not even Chris Christie.
In general:
The world is looking for America to “wake-up” and get it’s affairs in order. THAT’S IT! The trick, is to ignore the MSM, and everyone else (ie Putin) who feel the need to opine on ‘what America MUST do’. None of these people are on America’s side, and the American people must have a stiff spine and do what their minds and their guts are telling them to do: cut spending!
Once a semblance of common sense is retorted to the USA fiscal policy, the world will follow their lead and bounce-back.
So long as the WON is POTUS and he desperately works to spend as much as he can on as little as he can, the world’s economic picture will be sour, and public opinion about America, and all of it’s policy will be questioned. More importantly, as perceptions of a ‘weakened America’ are mainstream, America’s enemies will continue to be emboldened, further weakening the US and the west.
Man’o’Man, if only the GOP could nominate PMSH.
Man’o’Man, if only the GOP could nominate PMSH.
~Indiana Homez
They can have Ted Morton.
At least he’s a natural born American and the Progressive Conservative Party of Alberta is on the way out even if they do elect Morton as their new leader.
Better to buy a mattres with a safe.
When money is worthless only barter goods & gold mean anything.
O’narcissist: maskless & emasculated.
“*the true Obama is revealed: haughty, aloof, distant, and disdainful of simple folk and their lives.”
SDA revealed this before O’s electrification.
…-
“But now that the nation is in crisis, he seems unable to connect with the people.”
“Dashed Hopes”
“How Obama Disappointed the World”
“As America’s first black president, Barack Obama electrified an entire nation. But now that the nation is in crisis, he seems unable to connect with the people. He wanted to change America and restore its reputation in the world. But now his opponents are dictating the country’s political course. By Marc Hujer more…”
http://www.spiegel.de/international/spiegel/0,1518,779043,00.html
*O’narcissist:
http://www.globalpolitician.com/25109-barack-obama-elections