How bad is the economy? One photo says it all. IMF -toxic debt = @$4 trillionThe Good – Hopes are up since the Inauguration, The Bad – Unemployment numbers/comparison chart. The Ugly – Larry Summers the Clinton’s cheerleader for deregulating banks and a huge conflict of interest

How Bad is the Economy?

bad-times

 

Thanks to one of you who sent this in with caption

CATS ARE SO DRAMATIC

photo credit – somebody called terrance who sent it to lennel.t- lennel.moi-nonpl.us/?p=807

 

The Good

A NYT/CBS Poll finds more optimism about the country since the inauguration. Folks approve of the way Obama is handling the economy. Headline NYT story here

The Bad

Friday’s Four Bad Bears chart got 20 million Google hits  according to a Monday editorial. You got the chart on Investors411 Friday AM.

Behavior economics is important. If so many folks (potential investors) are looking at the long term bear charts –  you  should be concerned. (Click on 4/3 on calender at top of blog to see chart again).

Here’s another chart you are not going to like. From Justin Fox at Time magazine. Titled: Job Losses Are Now a LOT Worse Than the 81 82 Recession

jobloss32009

The brown line is the current recession job loss.

The Ugly

Larry Summers who along with Republicans was a huge cheerleader (Treasury Secretary under Clinton) for the deregulation of banks.  He is the economic  mover and shaker for the Obama administration.  Summers received hundreds of thousands in speaking fees 2008 from TARP recipients (shadow banks.)

If you count previous years Summers has made millions from shadow banks/institutions.

AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING

STOCKS

Index Percentage % Volume
Dow -0.52% down
NASDQ -0.93% down
S&P500 -0.837% down
Russell2000 -1.88% -

-

Technicals & Fundamentals

 Markets basically consolidated and loss a little ground as volume fell. = technically short term bullish 

Baltic Dry (Sea) Index - (see chart link on side of blog)  Measures flow of goods/trade and is a leading economic indicator.

Since 3/10 the BDI has fallen each day and yesterday was again  no exception. Another @1.3%  Total loss from high more than 30%.  (sorry I’ve messed up a few points on the exact percentage of fall in previous blogs) How many days in a row can an index fall?  The rate of change (fall) has slowed a little. Perhaps a positive.

Reading the Tea Leaves -  As long as  Shadow Banks/Institutions are going to get bailed out by taxpayers instead of bond/stock holders then the rally is on. That seems to be the direction Geithner Summers & Bernanke are headed. Trillions in wealth is changing hands.  

Forget all the other chatter, this massive transfer of wealth to shadow banks, and allowing them to be less transparent is what is holding up US stock markets. 

If your just a dumb taxpayer you have plenty to worry about because it sure looks like your getting robbed.

IMF Report Banks toxic debt could hit 4 trillion dollars. News like this is not bullish


Long Term Outlook CAUTIOUSLY BEARISH

See Changes in STRATEGY, POSITIONS, & OVERVIEW sections of blog 

AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING! 

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