11/22/10…honk if you think…

 …Ireland’s problems are behind us…let alone Greece which is dwarfed by the Emerald Isle in size and significance. Yet the market impact of Ireland paled in comparison to Greece…this from a country that in two decades became one of the most prosperous on the planet…unless you lived there and didn’t have a high paying job.

Unlike Iceland’s banks, Ireland’s were well run, while the former was out to destroy the world in derivatives…created here in the U.S. and thus the global credit bust became Ireland’s problem…that is exactly where American greed gets us…and yet we are still sucking up to those who caused the mess…we won’t even raise their taxes as if they have the power to do something to get our economy vibrant again…no sir…and they are still enriching themselves – thanks to the public trough – while we continue to suffer.

Yet we are enamored with stocks…great value…forget the fact that your returns over the past decade have been dismal at best…and it is the same people that are manipulating them.

Here is a good one for you: that Bloomberg story on gold  ETF’s …their value now equals nine years of production in the gold mines…nine years! Soros is the big player here but so is everyone else down to the corner grocer. This is a bubble that has not played out but like all bubbles will see a reversion much as we saw in 1980 gold prices…only perhaps more painful and even swifter…we didn’t have ETF’s then. When someone yells fire you better know where the exit doors are and be near one…in the meantime it will probably move choppily higher.

The much feared and in some camps loathed QE2 is having little impact on inflation…no the only inflation is commodity related due to the plunging dollar while Canada, Australia and New Zealand thrive….the former two are at parity with the dollar while the Kiwi is about 67 cents. As TB pointed out this is boosting our exports…of the ag variety and keeping unemployment down in the farm belt….but what does that do for the rest of us? Raise food and energy costs!

TB meant to point out a Bloomberg story last week on just how companies are thriving: they are doing their hiring abroad! Those are your stimulus dollars at work! If you seriously believe they will be hiring anytime soon…good luck!

Did you hear GM management crowing about how quickly the taxpayers got their money back…well, part of it anyway and if the stock rises 60% we breakeven…from $33 a share! But here was a key part of their mantra: we did it by cutting 29% of the labor force…they most certainly did not! Not globally…here! Globally they are adding jobs in China and other areas where sales are good…wouldn’t you really rather have a Buick? The Chinese would! So don’t expect GM to be hiring here…also remember their former finance sub GMAC was one of the culprits in this debacle…as was Ford’s Associates…the list goes on including banks who own predatory lenders to the downtrodden…is that why they are making loans so difficult to obtain? So they can force you down the line to one of their subs who can make way more money? Remember that raising the credit score to 640 from 620 for a conforming loan eliminated 3 million potential home buyers…now that is progress!

. . . - - - . . . . . . - - - . . . (S.O.S.)

TB is not a happy camper today as he has been reading more and more new books on the financial crisis…how can greed become so myopic? How can one believe that to enrich themselves at the expense of the entire country…even the world is a brilliant strategy in the long run??? Live it up guys…it’s later than you think.

For the rest of you…have a great day!

TB

Trader Bill thinks it is clear to anyone reading these missives that they are merely commentaries...as he sees it...and do not necessarily reflect the views of anyone other than his own. Information is gathered from sources he has found reliable, but no guarantees of accuracy are implied. These are merely observations of events in the marketplace offering in an attempt to offer a non-mainstream viewpoint. Copyright TBD Capital LLC, November 22, 2010.

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