.

Cavalry To the Rescue?

.

.

Mea Culpa

Sunday’s blog focused on the negatives

surrounding the Massive $126 billion ECB

Spanish bailout with just a postscript of what

should happen to stocks =

Major Rally

.

Charge

.

.

  • The $126 Billion dwarfs the size of the 2008 US bank bailout, if you consider Spain’s 1/10th the economic size of the USA
  • The far more than expected $$$ shows the ECB will do whatever it takes to keep Spain in the ECB.
  • Spain (GDP) is almost 5 times larger than Greece and, therefore, far more important
  • NO AUSTERITY Measures were made as conditions for the loan. The ECB finally seems to understand…

.

The Clear and present Danger

to  economic recovery is

[US Tea Party agenda]

.

AUSTERITY

.

.

Austerity Creates Unemployment

The more sever the cuts the greater the unemployment

.

It’s impossible for a country with

growing joblessness

to sustain an economic recovery

[Exception - If you do have a growing plutocracy

they could pay down the debt]

Chance of this – When hell Freezes Over

.

.

*********************

.

Worshiping The Wealthy

.

THE MYTH

Giving rich people your money

will make you wealthy

.

Nick Hanauer

Part 2 – See part 1 here

.

..

Click on Photo for link to an

Outstanding

short video on

Job Creation

.

Follow up to YOUR

comments and questions

on the Video

.

Why Cutting Taxes for

the Middle Class – CUSTOMERS

Creates far more

Jobs & revenue

that Cutting Taxes for a

plutocrat

.

Take 300 middle class families Making $ 65,000 a year. @$20,000,000.

Their money flows. They spend it on the plumber, groceries, gas, home repairs, baby sitters. Almost all their money goes quickly and directly back into the economy and this creates JOBS. Say 90% goes directly into job creation

Take the Plutocrat who makes $ @20,000,000 a year

Their money stagnates. They invest it in currencies, stocks (High Frequency Trades, Hedge Funds, Swiss Bank accounts) etc. A Far smaller portion of their money flows directly into the economy. Say 10% goes directly into job creation.

If the Plutocrat earns his money through Investments he/she/Romney is taxed far less than those who work.

We, therefore, punish workers and reward plutocrats who sit on their stagnant money.  Our government also collects far less revenue from the single plutocrat than the 300 middle class workers.


.

*******************

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STOCKS

.

What started out as a massive rally in Europe (Up over 2%), is fizzling as surprisingly, after opening lower -

.

Spanish Bond yields are rising

.

Spanish 10 year bond at

6.40% at 8:00 AM EST

.

Still on cusp of change to NEUTRAL – Spanish bond would have to close below 6.25% and/or below Friday’s low for a change to NEUTRAL.

.

Reading Tea Leaves

Is $126 Billion too small?


.


Longer Term Outlook

3 months+

.

NEUTRAL/

CAUTIOUSLY BEARISH

.

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

ALL TRADING INVOLVES RISK & POTENTIAL LOSS OF PRINCIPLE

CHECK ALL DATA, I MAKE MORE THAN GRAMMAR  ERRORS.







.

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