Pakistan the epicenter of terrorism – Wins one for Democracy. Are stocks on a bull run or a dead cat bounce?; AIG – Follow the money. Are We All Socialists Now? The financial channel ducks and covers. An uplifting comment/story by Stewart E. – about hanging together in tough economic times.
Pakistan Wins One for Democracy
The lawyers and opposition leaders “Long March” to have the Supreme Court Chief who was ousted under the former dictator seems to have won a major victory. It was bloody, but the government caved in as police/army refused to keep beating the demonstrators and Mr Chaundhry (former chief justice) was reinstated. For more see NYT or Times of India
__________
AIG – Follow The Money
We’ve shoveled $180 billion into AIG to keep he worlds entire financial system from going under. Yet we still can’t find out exactly where the money has gone. No one talked – For five months everyone’s lips have been wired shut. – the company, the Bush administration, the Obama administration & the Fed. See NYT Saturday editorial
The icing on this toxic cake is the crooks at AIG are being given $165 million dollar bonuses (a “contractual obligation”) including the small division that traded credit default swaps and sunk the company. More from Financial Post
AIG caved yesterday to all the pressure and listed most of the companies who it owed $ to. Hint – the trading of toxic, over leveraged debt with these other mega crooks. Opps, my mistake they are called financial companies. Check out the list or crooks here
They haven’t caved on the bonuses yet.
__________
CNBC Ducks and Covers
After heavily promoting the Jon Stewart/Jim Cramer smackdown. Not a word could be found about it on CNBC financial channels or blog. Further indication of just how badly Cramer did and how mad common folks are at the”Fast Money” financial news network. Here’s the LINK to the original Stewart shot across the bow.
_________
Are we All Socialist’s Now?
Over the last 4 decades the far right has hammered Americans with how poor our government does thing vs. the wonders unregulated capitalism.
The answer to them is take a look at the socialist systems of public eduction, police departments, fire departments post offices, and libraries. Do you really think AIG, GM Citigroup, Merrill Lynch and Lehman Brothers would have done a better job?
What would have happened if Social Security had been tied to the stock market?
We’re not socialists, but Americans are waking up to the fact that unregulated capitalism is a huge rip off, and government is the only institution strong enough to regulate it.
__________
Solutions
In the comments section (on right side of blog) you’ll find a comment and a story submitted by Stewart E. who notes “we are all in this together” The story about Beth Israel hospital and how they are handling the recession. It’s author or a “A Head with a Heart.” is Boston Globe columnist Kevin Cullin
________
AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING
Stocks
-
| Index | Percentage % | Volume |
|---|---|---|
| Dow | +0.75% | flat |
| NASDQ | +0.38% | down |
| S&P500 | +0.77% | down |
| Russell2000 | +0.76% | - |
-
Technicals & Fundamentals
Four straight rally days. Actually two rally days and two consolidation days. Friday was the later. What started as a technically oversold bear market rally has picked up up some steam because it seems that financial companies may be given some favorable treatment by the government. (see last Friday’s updates)
XLF (ETF) the beaten up financial sector is leading this rally – up over 30% last week.
Consolidation days are critical for any rally. If you go straight up the end result is almost always crash and burn.
Technically we have broken back up through the mother of all resistance levels (SPX area around 741- see past updates) and moved higher even on bad news. Add to this the volume behind the move and the bulls have regained control of short term momentum. Reading the tea leaves – the 10% rally should move higher – Ride the wave
The Caution - We’ve had a 20% and a 28% rally since last October and in April of 1930 we had a 45% rally before the markets crashed again. Long term fundamentals have not changed. It’s way to early to call a bottom.
Bernake did a good job on 60 Minutes
Obama on Jay Leno tonight.
Note - Every weekend the Strategy, Positions and Overview sections get updated and filled in.
Long Term Outlook = BEARS RULE
See Changes in STRATEGY, POSITIONS, & OVERVIEW sections of blog
AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING!
