The week ahead: The wild ride isn't over

I personally feel that the confidence in consumer spending is due to just that: injured confidence. Most of those who are wealthy are not hurt by this economic downturn. They dont lose a job, they dont lose money or have to worry about where the next meal is coming from. They do not worry about how to help a loved one get to the hospital then worry about how to pay for it. Our politicians continue to fail us over and over again. I am tired of worrying about war in other countries but that also means i am tired of helping out other countries with foreign aid. Send that money back to the U.S. where it can be better used. I say why wait 4 years to see if a President elect can produce effects? If they cant make changes when they say then they get 1 term AT BEST. caught making a promise you know you cant keep or dont end up keeping? Impeached.

Tumbleweed....

Yes I concur Spain will fall along with Greece.  Their banks all hold government debt that cannot be paid.  Their private economy loan portfolios are fine, but Spain cannot pay what it owes to its own banks without a printing press...

France is even in worse shape.  When governments borrow excessively and cannot pay their debts, and cannot print, they collapse.  We here in the USA have a printing press.  The question remains do we have enough wheel barrels...

Someone, we all remember Obama's "the recession is officially over" speech, just as we remember W's "mission accomplished" banner.   In this our 4th annual "Recovery Summer" where things continue to get worse, as Obama's failed stimulus, has left us with a huge debt, sub 2% growth, 8.2% (really 11% if you left  the people in the workforce) unemployment, it is clear he has to go.

We need to fire another 2000+ Donkey office holders this November like the people did in 2010.  This Tuesday we will see Scott Walker easily win in Wisconsin.  We will see Obamacare struck down by  the SCOTUS this month too.  And we shall probably see much more of Obama trying to blame the rich for his failed socialist polices....

Well the governments better do something soon. Investors are exhausted trying to stay in and according to averages, losing again. Merkel continues to rebuff calls for bonds, and if anything, they might as well toss Germany out of the Euro since obviously they want everyone else to pay the burden, but if the shoe were on the other foot, bet we'd see a different response. Democracy only works when you hold the cards apparently. As for comments about Spain and Greece going under and the proliferation to other Euro countries - only because the media hasn't tapped into other global regions, and bet they're next. Anyway the US has the largest debt, so if the doomsayers prayers are correct and Euro goes down, have fun in the US since it will get alot worse then there! As for Japan - intervention isn't helping and the market is doing their damndest to make sure the yen continues to strengthen - so yet another blow to any ability to strengthen demand and industry. Australia wants to tax the crap out of resources - coupled with perceived slow down in industrialisation and impact on resource prices, well that's buggered their investment sentiment locally. And spec stocks have been totalled across the board - all fine and dandy to tax the hell out of any gains by investors, so let's continue screwing those investors - if those investors weren't in the market, forget about future initiatives since the specs will all go under well in advance. Unemployment in the US - at 8% give or take, still too high, and as for comments whether it's 8.1 or 8.2 or 7.8%, that's pretty much splitting hairs and hardly worth commenting on as if those comments amount to a trend. And as for the Volcker rule and the ongoing pointless and costly debates and meeting - what an ineffectual lot they are. It hardly takes a brain surgeon to see the links between financial institutions, liquidity, myopic governments as far as the GFC causes and the ensuing three years of crap are concerned. And now the banks are further restricting interbank lending in Europe - sure that will help the situation. The Fed doesn't see any need for further easing or propping the market. The administration can't formulate any method to restore consumer confidence. The UK government talks, and talks and talks of further stimulus there. China has it's own internal issues especially deflating any bubble mechanics while balancing internal economic productivity, so don't expect them to save the day. Pakistan drops it's tax rates and increases public spending to appease voters. Syria continues to execute civilians while the English celebrate 60 years of Elizabeth on the thrown. Moodies and SP continue their merry dance of downgrading eveything on the planet despite the fact the damage has been done, in no small part to their over-rating of the very institutions that contributed to the collapse. But things will all be fine in the US since we have this enormous stockpile of oil (but don't expect gas prices to drop considering the high cost of refining that will continue according to the industrry) - I'm sure that stockpile will last a few decades....give it a few months should everything sort itself out, and we'll be back to 'domestic demand puts pressure on oil prices' and the pump prices will rise yet again. In fact lets wait till summer kicks in, and see how much demand stays low when all the somehow 'better off' Americans decide to vacation after two years of abstinence. Not to mention the demands Japan will add to oil given the nation's energy needs can't be met through nuclear provisions - last summer was bad, this one will be worse. Someone mentioned recently that we should have faith in the human spirit. Sure, good advice, but unfortunately most politicians and financial executives appear to fail heavily on the human spirit and decency front - they only got to those positions by treating the lower plebs as road kill, so why we put the faith in these individuals is a good question.

You people want a Conspiracy Theory to go with this???

  On Friday when the markets were at their lowest, and 10 yr note and 30 yr Bond prices broke into all time low yield territory, for the last two hours, they were artificially kept from retreating.  I watched as the amount of 10 year note contracts piled up over 400,000 to keep the yield from retreating up.  As a trader, the margin for 1 contract is aprox $2,500.  To throw a Billion dollars at this to prop up the contract level all time low yield, means government intervention.  Operation TWIST was thrown in for our Govt to actively do exactly this, and was an ultimate way to lower American borrowing costs, and a last ditch effort, I feel, before our own economy collapses in default from the Trillions owed.