quanta Posted August 23, 2009 Report Share Posted August 23, 2009 Let's see - the country went from bondage and battled to achieve liberty that gave us some freedom of choice and a few rights which lead to some abundance and since we had so much of this we all became complacent and eventually apathetic about the government getting out of control. After being apathetic for a bit we decided to become dependent upon the government and then thought we were still free and when the abundance diminishes the dependent may realize they are actually back in bondage. Were we "forced" into being dependent? If the dependent got upset about being in bondage and wanted out of it there would have to be bloodshed and war to start another cycle. The end game is in place, so I don't think we will go from bondage to liberty once again. Capitalism can be evil when those who run it are evil. Well there is always this oft quoted cycle: From Bondage to spiritual faith; From spiritual faith to great courage; From courage to liberty; From liberty to abundance; From abundance to complacency; From complacency to apathy; From apathy to dependence; From dependence back into bondage. Although nobody can quite put their finger on who actually said it... In that context, I don't think the word to use to describe the current system in the US is "Capitalism", but more like some kind of hybrid Capitalistic/Fascist evolutionary state. It is a creature which produces seemingly strange responses to perceived threats to it's environment. Like "Cash for Clunkers" ... Link to comment Share on other sites More sharing options...
mdporter Posted August 23, 2009 Report Share Posted August 23, 2009 Latest from Andy Xie What we are seeing now in the global economy is a pure liquidity bubble. It's been manifested in several asset classes. The most prominent are commodities, stocks and government bonds. The story that supports this bubble is that fiscal stimulus would lead to quick economic recovery, and the output gap could keep inflation down. Hence, central banks can keep interest rates low for a couple more years. And following this story line, investors can look forward to strong corporate earnings and low interest rates at the same time, a sort of a goldilocks scenario for the stock market. What occurred in China in the second quarter and started happening in the United States in the third quarter seems to lend support to this view. I think the market is being misled. The driving forces for the current bounce are inventory cycle and government stimulus. The follow-through from corporate capex and consumption are severely constrained by structural challenges. These challenges have origins in the bubble that led to a misallocation of resources. After the bubble burst, a mismatch of supply and demand limited the effectiveness of either stimulus or a bubble in creating demand. Link to comment Share on other sites More sharing options...
capitall Posted August 23, 2009 Report Share Posted August 23, 2009 I still think this is all going to end in violence. http://www.sondrak.com/index.php/weblog/clank6/ Well the big corporate interests certainly must hope so. If they can't PERSUADE Congress to block health care reform (perhaps because most of their constituents are FOR reform, as opposed to the corporate-organized Town Hall Shouters who are so loudly and angrily against it), then I suppose they could try to FRIGHTEN Congress into blocking it. Link to comment Share on other sites More sharing options...
Jorma Posted August 23, 2009 Report Share Posted August 23, 2009 I lost the link but the Fed is making rumblings about making some of the alphabet soup programs or ones like it permanent. With specific mention of supplying 'liquidity' to non banks. An area they are deep into already which seems pretty dodgy legally. QE is permanent if you want to broaden the definition of QE, which you should. Will it work for 2 months, 2 years, 20 years or 200? Standard QE #2, more buying of Treasuries, is I think 80% likely, but what do I know. I can envision what a bullish stampede it will cause in stocks. For an hour anyway. That's all several weeks off however. Link to comment Share on other sites More sharing options...
DrStool Posted August 23, 2009 Author Report Share Posted August 23, 2009 Haven't seen anything along those lines. Fact is that alphabet soup programs have been steadily shrinking and disappearing. I don't see the Fed reversing that. Link to comment Share on other sites More sharing options...
Jorma Posted August 23, 2009 Report Share Posted August 23, 2009 Haven't seen anything along those lines. Fact is that alphabet soup programs have been steadily shrinking and disappearing. I don't see the Fed reversing that. I'm searching. The story referenced a paper out of one of the regional banks. The article was short but seemed to imply it was discussed at the Jackson Hole meeting. Being mentioned in a paper defines it as academic. The Fed obviously created the alphabet soup without any formal plan and everyone now knows they can do it again. It makes sense for them to make these 'facilities' as they are often called permanent. Another crutch, a confidence booster, another way to embrace and institutionalize moral hazard. Link to comment Share on other sites More sharing options...
DrStool Posted August 23, 2009 Author Report Share Posted August 23, 2009 Final Blowoff- Professional Edition by Lee Adler, Sunday, August 23, 2009, in Professional Edition, Today's Markets | Permalink |Comments (0) Edit The 1030-1050 area on the SPX is a major resistance zone. The rally will either be halted here this week, or it seems likely that the market will move significantly higher in the weeks ahead. Negative divergences and price projections just above Friday’s close suggest that the battle lines are drawn between the forces of upward momentum and the forces of resistance and exhaustion. Click here to download complete report in pdf format (Professional Edition Subscribers). Try the Professional Edition risk free for thirty days. If, within that time, you don’t find the information useful, I will give you a full refund. It’s that simple. Click here for more information. Link to comment Share on other sites More sharing options...
quanta Posted August 23, 2009 Report Share Posted August 23, 2009 I still think this is all going to end in violence. http://www.sondrak.com/index.php/weblog/clank6/ This one did end in violence: Americans Fantasize, Germans Act: Two formerly well-off retired couples in Speyer, Germany, whose nest egg was largely wiped out by investments in sub-prime Florida mortgages, vented their anger by kidnapping their investment adviser, James Amburn, in June. They took him to the vacation home of one of the couples near the Austrian border, bound him like a mummy and beat and tortured him over several days, fracturing two ribs, in repeated attempts to punish him and extort his own property as partial compensation for their losses. Police rescued him after he managed to send a coded message by fax. Link to comment Share on other sites More sharing options...
jickiss Posted August 23, 2009 Report Share Posted August 23, 2009 jickiss is back! jickiss is back! and in the Manipulated World of MSM (Main Stream Media), notice how "Free Speech" or "Openly Stated Realistic Opinion" is Labeled as an "Attack"....? More Specific than plain Business/News/Advertising/Corporate Promotion of Their Products, consider that ZH is a forum where "Free Speech" and/or "Openly Stated Realistic Opinions" can still be offered for Public Consideration. Sounds like First Amendment stuff to your jickiss.... Hey, just add some more Clorox, you know, for the Plain Vanilla White Wash, oh, what did they say the opposite was?????? The Point is, of course, QE and Media Manipulation of Public Opinion With Feel Good Denial of Reality Lies, can bury or hide the Truth for some period, but neither the Truth nor the Real Trend will be extinguished or Manipulated forever. the following link can be clicked for the story at yahoo dot com finance.....but don't bother if you merely love PC. If you love PC, just skip the click and wait for a more appropriate story to click on. http://finance.yahoo.com/news/Attack-on-Ob...ml?x=0&.v=2 Link to comment Share on other sites More sharing options...
cwd Posted August 23, 2009 Report Share Posted August 23, 2009 Cutting out individual investors isn't the goal, said Bart Chilton, a CFTC commissioner, in an email. "The Commission has never said 'You aren't tall enough to ride,' " Mr. Chilton said. "I don't want to limit liquidity, but above all else, I want to ensure that prices for consumers are fair and that there is no manipulation -- intentional or otherwise." If natural gas falls low enough the only threat is to Taco Bell...when a million BTU's can be had for around the cost of a bean burrito. All of these commodity ETFs are going to ZERO. It is just a matter of time. It is called contango as the conracts expire and are rolled. On top of that the floor guys take a nice bite out of the apple as it rolls. I wonder who is on the otherside of the contracts? How about Goldman Sucks? A little spoof here. Scroll down to the video MM Link to comment Share on other sites More sharing options...
DrStool Posted August 23, 2009 Author Report Share Posted August 23, 2009 I have absolutely no clue what jickiss is trying to defend, or what he is trying to say there. One of our freedoms is the freedom to boycott. As for ZH, they exercise their freedom to misstate and misrepresent the facts in support of their viewpoint. Oh, and by the way, Glen Beck is a subhuman piece of shit. But we're not going to go into politics on this thread. There are other places for that. Link to comment Share on other sites More sharing options...
cwd Posted August 23, 2009 Report Share Posted August 23, 2009 Cutting out individual investors isn't the goal, said Bart Chilton, a CFTC commissioner, in an email. "The Commission has never said 'You aren't tall enough to ride,' " Mr. Chilton said. "I don't want to limit liquidity, but above all else, I want to ensure that prices for consumers are fair and that there is no manipulation -- intentional or otherwise." If natural gas falls low enough the only threat is to Taco Bell...when a million BTU's can be had for around the cost of a bean burrito. Link to comment Share on other sites More sharing options...
DrStool Posted August 23, 2009 Author Report Share Posted August 23, 2009 I've clarified my post above. Originally I thought it would follow jickiss post but cwd slipped one in there on me before I got mine posted. Link to comment Share on other sites More sharing options...
cwd Posted August 23, 2009 Report Share Posted August 23, 2009 I have absolutely no clue what jickiss is trying to defend, or what you are trying to say there. One of our freedoms is the freedom to boycott. As for ZH, they exercise their freedom to misstate and misrepresent the facts in support of their viewpoint. Oh, and by the way, Glen Beck is a subhuman piece of shit. But we're not going to go into politics on this thread. There are other places for that. To whom are you adressing those comments? Link to comment Share on other sites More sharing options...
Jimi Posted August 23, 2009 Report Share Posted August 23, 2009 Subhumanity lodges its protest of the comparison..... Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.