I'm really not sure about the economic horizon. Just kidding.
The audacity of government officials that continuously spew lie after lie telling us all is well, the recession is over, nothing to see here, move along is getting under my skin again. The honeymoon is almost over. I have not forgotten all of the fraud, misleading statements, the lies, the sheer criminal actions. I have not been lulled to sleep and have not partaken of the kool-aide or hopium distributed by the pushers in Washington and on Wall Street. I hope you have not either. All is not better. Sooner or later the top is gonna blow and the magnitude of the devastation will be historic. I have a self imposed "no rant" policy in place thru the holiday season, but you can be reassured that one is building in me like a mini Mount Vesuvius.
As my regular readers know I have speculated all along that it would take and "external event" to rip the market from the manipulators. Dubai was a close call. If the rumors of the withdrawal of funds from CITI were true, that would have totally devastated the whole financial system. You and I both know that if Dubai were to w/d all their funds from CITI they would not have them and then the trickle down effect would have been disastrous (think It's a Wonderful Life but there is no backstop). That said, what happens to Greece here Greece Enters Twilight Zone As It Announces 90% Banker Bonus Tax Plans, Expectations For Sub 3% Deficit By 2013 or Mexico Mexico Downgrade By S&P From BBB+ To BBB Means Everyone Get On The Bailout Train? Troubles in Austria? No More Failures Ever As Moral Hazard Goes Global: Austria's Hypo Alpe Adria Nationalized. The global ship is taking on water (actually the first two decks are full, they just won't admit that to you). It will not be long before a country defaults and tears down the financial house of cards. They are doing their best to hide the truth from you and me, but in reality we know, so why the charade? The global Ponzi scheme/musical chairs will end.
So most Americans disapprove of everything that is going on and polls say we would like things done differently (take HC for example), but they refuse to listen to us and go along their merry socialist path of righteousness. What is this country becoming? Cities Shut Off Streetlamps to Save Money; Indianapolis Threatens $2500 Fines for Challenging Traffic Tickets is a good example of what coming down the pike. Cities are strapped for cash and it will become painfully more obvious over the next year. Never mind that Paterson: 'New York Has Run Out Of Cash' or the 20% unemployed are running out of cash as well (wonder what types of actions that will bring?)
This one will being a smile to your face (and get you to questioning why we have not wiped out the poppy fields in Afghanistan). Do Summers, Geithner and Bernanke Have to Share Credit for Saving the Banks with Drug Kingpins? It is an interesting though and if proven true the conspiracy nuts will be, well, right again.
And last but not least THE 5 REASONS GOLD IS IN A BUBBLE AND AT RISK OF SIGNIFICANT CORRECTION Who am I to argue with Roubini? OK, I'll take the bait since I challenged myself. I think it corrects with the initial plunge of the market as people do not understand what they have and they rush for the exits and trade for profit. Then the smart ones (me) come in and buy it up and make it their only holding. Sounds good on paper at least.
Take care and have a great holiday season.