Monday, December 17, 2012

STOCKS IGNORING REALITY OF THE FISCAL CLIFF....

STOCKS SEEM TO BE IN HAPPY TALK LALA LAND REGARDING THE FISCAL CLIFF...

EITHER WAY THIS GOES...

BIG MONEY IS BEING TAKEN OUT OF THE ECONOMY...

AND THAT IS MONEY THAT CORPORATIONS CALL : "SALES"...!

WITHOUT MORE SALES THERE IS NO PROFIT...

WHETHER THE MONEY IS TAKEN OUT OF GOVERNMENT CONTRACTS TO COMPANIES...OR OUT OF THE POCKETS OF INDIVIDUALS WHO "BUY THINGS"...ITS NOT A GOOD RESULT FOR PROFITS IN 2013....

SO BE CAREFUL WHAT YOU ASK FOR...!!

THE MAGIC OF AUSTERITY IS YET TO BE DEMONSTRATED...!

AS TO THE DEBT ...THERE IS NO EVIDENCE THAT THE BOND MARKET IS BEGINNING TO "GAG" ON THE FED ISSUANCE...

TRUE...THE FED COULD BE THE ONLY THING HOLDING UP THIS ZOMBIE ECONOMY...!

BUT THAT TOO...IS ANOTHER REASON TO BE PESSIMISTIC ABOUT STOCKS IN 2013...!

SO WHERE IS ALL THIS HAPPY TALK COMING FROM...?