No, not that the HC bill got signed (stupid stuff like that happens every day - I believe something like 37 states are already moving with regulation to fight the HC bill). I'm actually stunned at the melt up today. Yeah, I know, I called it this morning, but that does not mean that I can't be annoyed buy the perpetual Ponzi market.
The bulls are so fat and happy with their bloated statements that they will push anything higher that GS or JPM tell them to. As long at the BS BLS, CNBS and the MSM keep on reporting the "news" and "figures" this melt job will never end. Heck, even O's approval rating is up 7 points in the last 5 days. Hell, they will ramp anything these days. With insolvent banks, bankrupt states and 20% unemployment who gives a shit as the No Volume Meltup Continues, Just 251 More Days Until Dow 36,000.
Please see Top Analyst: "Developed Market Governments Are Insolvent By Any Reasonable Definition". Really anyone (other than those that work for the Fed or Treasury that could not see the last bubble(s) coming) should be able to see this next bubble, but you would not know it based on the markets ramp job. "In other words, by assuming huge portions of the risk from banks trading in toxic derivatives, and by spending trillions that they don't have, central banks have put their countries at risk from default." SocGen's Dylan Grice (yes, this is basically from a TBTF analyst) has this to say, "Eventually, there will be a crisis of such magnitude that the political winds change direction, and become blustering gales forcing us onto the course of fiscal sustainability. Until it does, the temptation to inflate will remain, as will economists with spurious mathematical rationalizations as to why such inflation will make everything OK . Until it does, the outlook will remain favorable for gold. But eventually, majority opinion will accept the painful contractionary medicine because it will have to. That will be the time to sell gold."
Washington's blog also has 72% of Democrats, 84% of Republicans and 80% of Independents Think the Economy Could Collapse in case you are interested.
Another stunner - David Einhorn Slams SEC, Says Its Culture Of "Lawlessness" That Allowed Allied Capital's Fraud Cannot Continue. What, who is he fooling? Regulation would spoil everything. Of course the culture of lawlessness will continue. Well, till the total collapse and rape of the middle class is complete, then there will be nothing left except for them to feed upon themselves.
Mish analyzes one of Denninger's earlier posts in Bernanke Wants to End Bank Reserve Requirements Completely: Does it Matter? What Chaos will Result? End reserve requirements? you got that. Reserves are YOUR DEPOSITS. That means they don't have to keep anything in the bank (like your money). The end answer is "Exactly the kind of banking chaos we have already seen! Nothing has changed. Expect more chaos because it is coming." The post does a nice job of explaining the expansion of the money supply, fractional reserves and how your money every night disappears and wonders off to lala land to grow. This is really screwed up. Sure, we're supposed to "trust" them that if I want to go get my $100k out of the bank it will "be there". Shuh...
Denninger is on a roll today. Lots of short and saweet posts hammering everything. Now we have this wonderful bill that will make everything better (shuh...right, maybe for the insurance companies and related industries). Have you gotten your rate increase yet? This dude has in That Didn't Take Long.... Just wait till April 01. "If your value in the marketplace is $20/hour, with a 2,000 hour man-year of work (50 weeks x 40 hours/week) your economic value in the economy is $40,000 (gross.) From this your employer is going to have to take $10,000 out to avoid being fined, which means you now make $15/hour. Then you pay taxes (FICA and Medicare) on that. You'll likely get back the rest of your federal income tax (especially if you have a family) but your out-of-pocket medical expenses will still be that $10,000 either way." So, this will encourage hiring and lower costs to you and me? the estimates on increased taxes range from $500B to $1.2T. This is just the medicine the "recovered" economy needed right now. This one will backfire badly.
I'm stunned actually cause they are finding ways to make things worse. Massive deflation is coming (Inflation? Where?), then I believe global default is coming (they are setting it up with little things like "no reserve requirements"). It will be the only solution. If you live in a state that gives you your tax refund in the form of an IOU, congratulations, you are on the cusp of devastation. If you live in one of the PIIGS (that we may be bailing out with our tax dollars) you know what I am talking about. If you are a sheltered sheeple watching the MSM, you have not clue how bad it is out there. The unmentioned derivatives market will implode and then QUADrillions will become the word of the day. Something tells me we won't be able to treat that like the advance from millions to billions to trillions. There will be only one way out, but in the mean time move a long, nothing to see here.
Gerald Celente Predicts "Crash of 2010"