Tuesday, September 8, 2009

Teetering At The Top? This Is One Heck Of A Balancing Act!

But the top of what? Is the game coming to an end? The end Tom Brokaw says that we're too ignorant to see, and that we can't figure out on our own on the Internet without mother media being the deliverer of such news? The end CNBS refuses to report? The end the government and TBTF banks refuse to allow? The end the Fed may have allowed to happen? The end that was inevitable since this credit bubble was unleashed? The end that was foretold before fractional reserve banking was allowed?

More and more this appears to be a time to socialize, or to further the process of socialization begun many years ago. Everywhere you look this once great nation of nations is becoming one massive government sponsored program after another. Unfortunately they have failed at a high majority of these and hopefully this is just the end of a cycle. A time of purging excess from the system.

Zero Hedge has Excess Liquidity Game Is Coming To An End. I which TD brings us this from David Rosenberg's daily notes, "In his daily notes, Rosie looks at what is sure to cause a few sleepless nights to all trend chasers who believe that the trillions in excess liquidity will be there to forever prop up artificially high stock prices. News flash - it won't, and it has already started to contract aggressively, yet computers seem to have problems with pulling down St. Louis Fed time series in their quest to constantly front-run one another." David, Big Ben is "making it rain" man just like Packman does in Vegas. Don't you ever get out to have any fun? What's so wrong with a little excess funds floating around?

David has been spot on thus far and his exit from Mother Merrill was timely and I would love to know the true reasons as to the timing of his exit. His successor surely is towing the corporate line as ZH brings us Rosenberg Replacement Reaches For The Stratosphere, Sees 1,200 S&P On "Strong Earnings Growth". "The Chief US Equity Strategist and Rosie replacement sees an S&P earnings of approximately $70, or roughly a Div/0 compared to the most recent negative trailing EPS for S&P companies. How Bianco sees earnings growth on limited cost extraction and a persistently declining top line is just slightly beyond our meager calculating skills." Another glowing report from ML! Surprise! Someone care to do the math on a 1200 P/E for the market? Did you hear about the JPM upgrade of GE? This is NUTS!

Then from The Market Ticker Denninger delivers FLASH: Consumer Credit RECORD Contraction. "The inevitable contraction that is necessary to put the financial system back into balance is happening - whether The Fed wants it to or not." What Karl, you mean the reflation trick isn't working anymore?

Mish tells us the great news in Job Creation Down 35%, Consumer Spending Down 33% From Year Ago. "Bear in mind I think unemployment is going to continue rising for another year, then come back down slowly and reluctantly as noted in Structurally High Unemployment For A Decade. Thus a jobless recovery is a given, assuming there even is a recovery worth mentioning." I would love to get Mish geeked up on about five 5hr energy drinks before he does his next post. Nah, that would make him more like me and we don't need another me.

The Big Picture has a great post New Week, New Links where you can glean such delightful tidbits like, 86% of all mortgages are taxpayer backed in some form or another or Study Says World’s Stocks Controlled by Select Few and The Sorry Tale of America’s Out-of-control Spending. This post summarized all sorts of delightful information of our green shootless economy.

Folks, I have not mentioned the dollar, treasury auctions, gold, oil, FNM, RE, CRE, CDS, MBS, China, medicare, social security or pick a war that were funding. That is a huge heap of shit we're dealing with and our president has time to have a twenty minute 9/11 conspiracy interview with Charlie Sheen (not really). The purging of excesses is JUST underway and will continue till some form of sustainable measure is attained. Remember without a gold standard of valuation you can exponentially expand your lending capabilities to exponential proportions and we have done just that. There is more shit off balance sheets than we can count.

Our government has allowed the vastly unregulated banks to run all over us. You were given the keys to the kingdom in exchange for allowing (unintentionally) them to rape you of your financial freedom all for greed, profit and power. The house of cards is teetering and will crumble soon. It is inevitable. Just be ready when it hits. It may be sooner than you can imagine. Tom Brokaw will let you know when.

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