Why give bailout money to the  pond scum sucking shadow banks/institutions that caused the financial meltdown and not to me? – Obama’s outlines his economic plan – Imagine This – Liverpool and Antwerp train stations


Banknotes from all over world from British Museum

Imagine This

Your walking through a train station and suddenly the following happens Liverpool Train Station & Antwerp Tain Station. The Liverpool strain station has already had over 10 million views on You Tube, but the Antwerp one is a bit better. T-Mobile is the originator.

Obama’s Economic Outline

This guy is a gifted communicator. Where we’ve been economically and where we are going – yesterday’s major economic address. He went a long way in convincing me and you know I’ve been a fierce critic of his economic team. Speech and video here.

Why Pond Scum Bankers Get Bailed Out

This is just Economics 101. It is the most asked question/discussion I get personally and one that all American’s are asking. Why not just give me the money instead of the pond scum banks that created the whole financial mess?

  • Banks by law have to keep $1 in assets to every $8 to $10 they loan out. This sends 8 to 10  times more money flowing into the system than giving you a dollar. Banks, if they are run properly, are far more crucial than you because this 8/10 to 1 ratio of  capital going back into the economic system. This dramatically impacts you from mortgages to credit cards.
  • Without a viable banking system the economy collapses. The crooks at AIG were the end line in the daisy chain of over leveraged shadow banks.
  • You are getting a tax cut or all but the most wealth Americans are. However for you the money has a limited impact on the overall economy.  At best,  it has only a one to one ratio going into the economy because you might save it or use it to pay down debt.  

The problem is everyone got massively over leveraged. The shadow banks in collusion and/or stupidity with some conglomerates, insurance companies, politicians and rating agencies loaned out say $30 for every one dollar of  assets,  instead of the historical $8 to $10 ratio of assets to loans. Many consumers (YOU) and shadow banks added way too much debt to their bottom line.





Index Percentage % Volume
Dow -1.71% up
NASDQ -1.67% up
S&P500 -2.01% up
Russell2000 -3.17% -


Technicals & Fundamentals

For the first time since the current rally began in early March volume has confirmed a major move lower. Volume, our #1 confirmation factor, rose and was well above average.  Usually two or three of these big volume & price drop days are enough to turn the market back to the bear camp.  So watch the volume.

XLF - The ETF that tracks financials (mostly shadow banks) fell -6.59%% in increased, well above average volume.  Financials (mostly shadow banks) have lead this rally and if they  collapse so will almost all other sectors. The 7% loss is less than 1/2 of the 16% gain on Monday and we’ve only had one day of heavy volume, but this could be the first sign of a correction.

Monday’s Technical Outlook - After a major rally what bulls want for a minimum is for volume to decrease and markets to hold onto over 50% of gains. Obviously preferable would be another rally day in big volume

Short Term Outlook – First technical chink in the bulls armor has appeared. Too early to make a call, but short term traders should pay attention. The Danger signs – another big price/volume decline probably led by financials and/or stocks moving lower on no news or good news.



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