2/11/11…the Grand Obfuscated Party

It just keeps getting weirder and weirder and why not? Our president and the director of the CIA muffed the call that Mubarak was stepping down. Obama got his word thru his advisors but what about Leon Panetta? The CIA Chief heard it on the news! What are we paying for? Al Jazeera would probably have had the story right! Anyway, stocks did little yesterday EXCEPT that the lagging Transports were the big hit??? They were up 71 points (16 from FedEx alone) by 17/3, or 1.4% on a day the rest of the majors weren’t even up 0.5%! What was that all about??? Volume was below average at 1.026B shares but it was the first 1B+ day since 2/1! Again, this isn’t a market…it’s a bloomin’ casino!

The day started out with the Dow futures off more than 50 points and the NDQ -20, today they are down 30 and 4 respectively as treasuries rally bravely off their lows from yesterday, 30 yr +5/8 at 4.71 and the 30 yr TIP +11/16 at a miserable 2.20%. But the concern should be the 10 yr which at 3.64% is driving the 30 yr mortgage rate over 5%…is this good for housing and in turn is this good for the economy especially when the ‘hell bent for budget cuts’ Congress is considering the fate of Fannie and Freddie…who hold more than 50% of the mortgages in the country…think about that tea baggers and do be careful what you wish for…you own home value and liquidity depend on it.

Yesterday TB talked to a friend about visiting him. He said that would be great but he had to sell his home here (because he could) and return to Las Vegas as the only way he could sell the one there was to take a 70% hit!!! Is THAT a strong economy?

…once again the GOP has its proverbial butt in a sling. Last time around it was the Christian right which they continue to humor in their never-ending battle of gay rights and abortion-funding. Just as the Dems didn’t get it (it’s about jobs stupid!…not just the economy anymore), in order to placate the tea baggers, who want the budget slashed (but with no agreement as to where so long as it doesn’t negatively impact them personally, while the Koch brothers sit sipping their bourbon and chuckling to themselves).

Speaker Boehner promised $100 billion in budget cuts but he meant over a full fiscal year. Thus a cut of $65 billion should have done the trick but no sir…to a tea bagger $100 billion means  just that and they want it now. This is reminiscent of the GOP when Hoover was President and why today he has only an Institute named after him.

Most of the tea baggers in Congress know nothing about the budget process…nor do they seem to know that budget cuts mean lost jobs…as in more lost jobs. Budget Committee Chairman Rogers (no relation to Aaron who spells it with a ‘d’), even tried to tell them that it could mean lost jobs at the FBI…and other areas of interest to them…but this is what happens when you have a common goal but no idea of how to get there…without raising taxes of course even for those who pay virtually none!

This comes just a day after a battle over homeland security where the tea baggers, largely libertarians are torn between individual rights and the governments right to know…ostensibly for our safety although that has yet to be proven by the Patriot Act.

We may be coming to a time where they may rue that day in November when they took control. Be careful what you wish for is always sage advice. The presidential election is the one to win and with the shift in Obama’s popularity and a fail to deliver it could play right into the hands of the Dems.

TB didn’t think there was a chance of a double-dip but the more he sees of Republican prowess, he, and they may be very surprised. Hail the jobless recovery!

Savor the weekend!

TB

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