Hysteria and bandwagonism are going on.
The markets are acting nutty...and in the face of much bad news which seems to be largely ignored.
The Media, government reports, etc. seem to prefer to focus on those areas (financial, auto sales, some home sales data) that have seen improvement SOLELY on the back of massive government intervention. In fact, without help they would ALL have ceased to exist today.
Nobody seems to give a hoot that Obama is acting like the Chavez of a few years ago. Cripes, Obama has just given shiny new cars to half a million people!
Obama (err, I mean the taxpayer) owns the banks and major financial institutions and interest rates are flat at their lowest levels in history. Any lower and Obama will be giving you money to take out a loan! Wait a minute. I think he already is! LOL
---------------------------------------------------------------
The real economic news (as opposed to the fairytales mentioned above) looks like this:
ca.news.finance.yahoo.com
Shrinking business activity, fewer new orders and lower employment sapped some modest momentum from the U.S. services sector in July, although economists said the setback likely was a blip and not the start of a troubling trend.
The Institute for Supply Management on Wednesday said its services index clocked in at 46.4, down from 47 in June. It's the 10th straight month of decline as any reading below 50 indicates the sector is shrinking.
The service industries included in the ISM survey, including retailers, financial services, transportation and health care, make up more than 80 per cent of the country's economic activity.
Just look at this. Economists say this is a blip, yet the very next sentence says that this is a 10 month long trend.
The troubling trend is there folks.
---------------------------------------------------------------
Here is another:
Procer & Gamble make products that people actually need and use.
finance.yahoo.com
P&G's 4Q profit falls 18 pct; sales still falling
---------------------------------------------------------------
Here is another:
reuters.com
*snip*
Dick Bove, a bank analyst with Rochdale Securities, said AIG and CIT Group also are benefiting from a growing appetite for risk.
"Money is now pouring into the junk bonds, the high grades, commercial paper and everything financial," Bove said.
Does anyone see a problem here? History is repeating itself so soon after massive pain was felt. That's the mark of true "junkies".
This market is nuts and is totally irrational.
Goldman and Morgan Stanley are spinning out packaged derivatives to unsuspecting clients again. Such activity should be illegal at this point in time.
Furthermore, this is all happening on low volume, as has been mentioned before on BDBBR.
Can someone remind me again why oil keeps going up?
S&P |
