I have been hearing this a lot as if it is predetermined. I don’t remember the market crashing in October of 2009? As a matter of fact after March 2009 we experienced one of the biggest rallies we may see in our lifetimes. So why all the gloom and doom about an October Surprise? I continue to invest and take profits. I am not a long investor and sometimes that has worked to my disadvantage as I bought SLW in January 2009 at 6.50 a share. I owned HL in the 3.45 range. Do I have regrets? I would be lying if I didn’t, but I was just learning.
So let’s assume that the jobs are not coming back and the Bankster’s will continue to rape and pillage the land. The truth is that they are not whole either. They are sitting on a time bomb of CMBS, MBS and underwater homes. They have reserves due to TARP and other government cheese handouts, but they cannot lend, because no one is borrowing. By failing to foreclose on all the deadbeats they have now created a moral hazard as squatters take advantage of living rent free. Obama’s new home buyer credit ended so did sales of existing homes. After the Cash for clunkers debacle people stopped buying cars.
So once again the government gave away money (that they did not have) in the guise of stimulating the economy and for what? Empty promises of economic recovery that quickly faded away like a mirage in the desert. All the smartest guys in the room turned out to be not so damn smart. So what will they do for an encore? QE2 is their next gambit. Once that is over and the Tea party nuts are hopping mad, nothing will have changed except maybe the faces in Congress. Republican or Democrats they will fall in line and the lobbyists will rule.
Until we allow the bond holders to take a haircut and the banks holding bad debt to fail nothing will recover. We have to flush it all out of the system or there is no hope for recovery. We now live in the land of unemployment checks and food stamps. Ergo the previous thread of people in line at Walmart’s at the end of the month. I don’t know where the leadership will come from, but that is what we need. Someone who will stand up to the status quo and make choices that will not be popular, but will be honest. We need to restore integrity both in politics and in our personal lives. We need once again to become the "land of the free and the home of the brave." Right now we are the "land of the debt enslaved and home of cowards"(excluding our troops overseas). It’s time to take our medicine, as bitter as that pill may be to swallow. We all need to take the red pill and wake up from an American Nightmare come true.
QueenBee