The Wall Street Shills and the stock Hypsters on Tout TV...
may have a hard time spinning the next quarter on Wall Street. Virtually every number is a BIG DOWNER...
Consumers are snapping shut like a GIANT CLAM...
Oil and Gas are at records that don't seem to be "wrong" given market conditions.
The Fed is Hell-Bent on reversing the "One Percent Solution" that has given us the BIGGEST housing bubble in history.
The Dollar simply must be supported ON FUNDAMENTALS, LIKE HIGHER RATES, AND NOT SOLELY ON THE LARGESS OF OUR CHUMS, THE COMMUNIST CHINESE.
The market is massively over-priced historically. At the high point of the 1929 Bubble, a P/E of 20 was considered hugely expensive...NOW IT'S SEEN AS "NORMAL!" Yields are still low, but they no longer justify this MASSIVE P/E MULTIPLE... Indeed, the Era of High P/Es may be over for good in 2006. And then there is "the conundrum" which must resolve itself eventually. Or has the Fed now lost all control of interest rates in the US...in favor of the Bank of China's bond buying policies....?
Finally, this has been a NOWHERE FAST MARKET... And I doubt the public will support it with their 401k money for much longer. The public knows that their 401ks are a BLACK HOLE supporting the stock options of the mega-rich...and they are running out of patience. Indeed, I know some folks who are even looking to "art, collectibles and rare books" INSTEND OF STOCKS AND REAL ESTATE...as "investments for retirement!" Good Luck on that...
Finally, does ANYONE really believe that Iraq will "turn out OK" for Dubya and the Neocons...? That notion seems to have gone the way of "it always goes up" on Wall Street!
Still the capacity of Americans for foolishness and self-delusion should never be under-estimated. After all, many of them actually DID vote for Bush in 2004...and how stupid was that!
Let's face it...the Plunge Protection Guys are going to have their hands full in October...but Washington still does control the Power of the Printing Press...even if it's Power over the Purse is waning fast.
