Paul Craig Roberts is one of the founders of Reaganomics and on Max Keiser’s show (video) had the following to say about the global financial crisis.

The Money Quotes -

“The west prides itself that it is the standard for the world, that it is a democracy. But nowhere do you see democratic outcomes: not in Greece, not in Ireland, not in the UK, not here, the outcomes are always to punish the innocent and reward the guilty…

There is no democracy, there are oligarchies, some of these smaller European countries are not even run by their own governments, they are run by Wall Street

Revolution is the only answer…

We are confronted with a curious situation. Throughout the west we think we have democracy, we hold ourselves up high, we demonize China, we talk about the mafia state of Russia, we talk about the Arabs and so on, but where is the democracy here?”

Just how far to the radical right this nation has turned when the founder of Reaganomics tells us China has more democracy than the USA and calls for revolution.

Your Comments

  • Too Big To Fail lived up to its promise on HBO last night with  A little too much spinning of bankers and Paulson who caused the crisis as heroes. But the postscript was most alarming. Now interconnected shadow banks are even  bigger – only 10 banks have 77% of the capital in the USA. Of course there are no serious pieces of legislation to prevent what happened from happening again – the last minute intervention to prevent the meltdown of the world’s financial system
  • Yankee Bob has another editorial (Link and scroll down) The money quote – “What Bush and his gangsters did is too important to ignore. And to ignore it is to allow the precedent to stand for future use.”
  • Jim J has a link to a 60 Minutes Interview of Tom Drake (use above link to read other comments on this) Popeye money quoteOne big reason 911 happened and Bush never got bin Laden is because of the corruption and mismanagement of the NSA. They had a $3 million dollar program that the whistleblowers [Drake} wanted, but decided to go with a $1.2 billion program sub contracted to private industry that didn't work and had to be cancelled in 2006.

KISS & Stocks

(Keep It Simple Stupid)

If you don’t understand a term look in up at dictionary




Index Percentage Volume
Dow -1.05% Up
NASDQ -1.58% Flat
S&P 500 -1.19% Down
Russell 2000 -1.81% -



Technicals, Fundamentals & Analysis

  • Markets sank as the dollar rose.  We are breaking a pattern. Usually there are heavy volume declines and this was light volume. Don't know what it means, but reason to raise an eyebrow of worry. Weak volume declines are rare.
  • Fed POMO ($7 billion) arrived yesterday,but had little positive impact. All this quantitative easing ends June 30th.
  • Real negative behind market toasting yesterday was emerging markets. (EEM is the ETF - LINK to chart) Emerging markets are sitting right above major support at their 200 day moving average. Japan & Europe can have strikes against them, but if the engine of global growth emerging markets meltdown, that's STRIKE THREE
  • Reading The Tea Leaves - We have a month long series of lower lows and highs on the major indexes. Fundamental problems abound. However we have a moderately oversold market (See MO below) and the Fed still supplying liquidity. = We are probably in for a rally that reaches another lower high for US indexes.
  • Bottom Line - It will get harder and harder to make bullish calls as June 30th approaches and injections of Fed liquidity stop.


Shorter Term Forecasting Indexes

There are hundreds of forecasting tools, – These two tools have worked

When they stop working Investors411 will use other Indexes

  • The Dollar (USD) [Any daily price move over +/- 0.50 is significant. Dollar usually moves inversely to stocks] Dollar rose SIGNIFICANTLY  AGAIN on Monday +0.68%. The Dollar bulls  are back, and momentum could carry the dollar higher and stocks lower = Bearish
  • McClellan Index(MO) [The very rough guideline is over +60 = overbought market = sell positions or short stocks, & -60 = oversold market = buy stocks .] MO fell to -49.17 This is almost exactly April’s low although March’s low reached -90 US stocks moderately oversold = Bullish/Neutral (trying to show a lot more bullish and just a tad neutral.


Paul’s Corner

Paul’s Corner

Buy and Hold, Dividends, Better Stocks?

As we all know these past few months have been tough to make money trading stocks, I don’t care who you are, it’s been tough. With the stomach wrenching moves of the market of late folks have been asking for “longer term better stocks” and “dividend stocks” thinking that is what is needed so your lunch doesn’t turn into a bad meal at Taco Bell.

Last fall when Your Stock List 3 was introduced, the stocks sat still for a few weeks and then at the start of September the market took off on a wonderful bull run and YSL 3 enjoyed the ride with a very good gain. As they say “a good time was had by all“.

Several of the stocks didn’t make the ride so a few were dropped and a few new member requested stocks were added and the new list was introduced about the same time the market peaked and immediately took a 7%  correction.

Since then due to market rotation, the run and decline of the oils, the collapse of silver etc, the market and YSL 4 has essentially been flat. So is YSL dead? Is the market dead? Of course not, most of the YSL 4 charts actually looked quite good until yesterday’s sell off and the market does what it always does, it baffles one and all and will continue to do so for years to come.

So what has changed in “Your Fathers Stock Market” so we can no longer buy and hold? Be an investor rather than a trader? Well as much as I like to joke about Jim Cramer and his lousy recommendations (Say silver a few weeks back) he had a very good video last week about what  the market is now and what has changed since your dad selected his latest pick with a pencil circling a stock symbol in his favorite news paper.


So do we complain the good old days of buy and hold or over, or do we get with the program and realize paying attention, has replace complacency?

YSL 4 chart reviews will be made as necessary and added to the comments section as the week goes on so check over there from time to time.


Check out the advice, recommendations, analysis by bloggers on stocks,politics and trends in the comments section of the blog Many of the best concepts regarding YOUR Financial Future are discussed their. Watch for Paul’s Corner every Tuesday and Thursday


Longer Term Outlook



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