Feb 10 2009 2:35PM
Market Mayhem In May
Our forecast indicates a stock market Obama Bounce when TARP II is news as traders and investors figure out what happens next in Washington. Expect a February market rally followed by an early spring, 2009 selling disaster-catastrophe taking the Dow from 10,400 to 7,250 or, worse. The S&P’s could skid to 400-600. We suggest that this April and May, a selling waterfall could begin as early as Mid-March, a month earlier than normal in that annual selling, down-cycle.
“We got this shocker in an email this week driving fear into the hearts of the herd throughout our land and the entire world for that matter. We would normally not care but this is from one of the smartest on the planet especially relating to situational analysis. This is the stuff of revolutionary street talk.” -Traderrog
“You better know the new pledge of allegiance to the flag of the national company store..."I pledge allegiance to Goldman Sachs, and to the conspiracy for which it stands, one racket under Obama, Communist and indivisible, with slavery, debt, and poverty for all. There will be written test, count on it.” (Name Withheld).
Our new Treasury Secretary Tim Geithner, and hench-lady-men-partners Shiela Bair of FDIC, and Benny (Chopper Ben) Bernanke, Federal Reserve Chairman are scrambling to overcome nasty TARP I press as bankers get more than a free ride. They not only escape the wrath of justice but get a free pass to steal more. As these hench-persons struggle mightily to ram the latest legendary taxpayer robbery through our senate, market tensions and public anger rise like summer heat in Death Valley. Isn’t that comparison a clear vision of the Sheeple versus Wall & Broad?
On the other side, Obama and his senators must allow-permit crooked banksters to grab what they need in government-taxpayer capital to reliquify their banks. Should they not, the entire world’s economic system melts down. The perps get paid twice; once when they stole it via derivatives and the second time stealing more new capital keeping banks alive.
You can tell Paulson and Geithner are bank front-men as Paulson wanted bullet-proof, airtight lawsuit and criminal protection before writing billions in government checks to his partners and investment bank minions. Paulson got away with it and now Geithner is pushing for Goldman to be able to pay-off any borrowed TARP cash so they do not fall under the latest TARP I and TARP II government restrictive umbrella. Goldman bonuses, it was reported equaled the cash they got from TARP I taxpayers. Gosh, you just have to love the audacity!
As all-knowing politicians scream at this massive theft while approving it, and the public seethes in rising anger, we see a Catch-22 in government distrust as the ripped-off Sheeple plan something allegedly worse for those thieves and perps who made this mess and continue to take even more.
What About The Broken Busted States?
When we think of broken states California comes to mind first. The Terminator (The Gov) tells us they are $40 Billion in the hole but we see nothing substantial in offered budget cuts. They talk and talk but nobody cuts. Instead Arnold S. proclaimed out loud a few weeks ago they would have to borrow a few billion, of course for cash-flow purposes, from Uncle Sam until they can extract more from resident taxpayers.
When you see the mounting troubles of this state you have to ask yourself is God angry with them? California’s drama of the day includes mudslides, drought, lack of public water for consumers and crops, and gang membership counting over 100,000. Prices are beyond comprehension and we also hear of those multitudes of forest and rural-burb ground fires that occasionally eat-devour an entire subdivision of plastic multi-million dollar mansions. And you, you blessed little suckers, get to pay for their damages in your rising fire insurance policies.
TARP II Constructs A Mammoth Victim Trap Designed By Fiduciary Felons
The real objective in foisting this mess onto taxpayers follows a familiar formula. Create a disaster, create lots of new voter victims and then scream help must arrive-like yesterday. They sure did a great job on Katrina right? Do you really suppose over $800 billion will be wisely spent as they suggest? Will it be Temporary? Will it be Targeted? You gotta have real brass to even insinuate the funds will be wisely spent. Wisely isn’t even in the District of Columbia dictionary.
We watched a smart political analyst (is there such a thing?) on Fox News tell us this mess resembles a 30-year old son with no job who’s filched off his parents since high school graduation as he’s too lazy to work and too lazy to get educated. Instead this dude is a household fixture like the living room couch or, a pile of gelatinous protoplasm, similar say to thrice-elected politicians.
The lady analyst told the audience bluntly. Toss him in the street and watch how fast he finds work and more importantly strives to educate himself to dodge menial labor for something better. Good advice.
We can tell where this all goes next. Our revered new leader gets the TARP II approved, and the gazillions voted in by the Party-In-Control. Almost 95% is wasted just buying new votes. This herds the Sheeple into a brain-dead assemblage of political groupies who can be counted upon to re-elect the brainless dolts who gave them these handouts in the first place. Watta game!
Rome is burning and we see no fire department. The U.S. and the world at large is about to discover there is no free lunch. Next comes those inevitable recriminations, more drama, and a long hot summer in the cities; and of course more TARP robberies. When would you think we see torches and pitchforks in the streets? Would this be after TARP 15 or, TARP 25?
The enabling-instigating-political-gang-leaders and their zombie-welfare followers, according to history, soon visit a shocking come-uppance. In the day of the American Pilgrims, William Bradford discovered community gardens didn’t work as the shirkers lay-down and feed-off the workers. This time the workers, an army of three million gun owners along with their buddies and others sick of socialistic-commie-liberal crap rise could rise mightily to the occasion and take charge.
In our view, we hope to be in heaven before this happens but the way things are moving now, I guess we get ringside seats. Buckle-up for a once in a century exciting event. -Traderrog
Editor Trader Tracks Newsletter
& The Rog Blog at webeatthestreet.com