When will we get honest, when will we get real? Why do we let them do this to us?
This latest market run-up is not being driven by real productivity, it's being driven by trillions of dollars in TARP funds being pushed into the market (on Bernanke-greased-skids) through the back door. But TARP funds are borrowed.
What they want you to say is "Oh that Bernanke, he really fixed things, that Obama, he's really making things better." Now, do you have a child? Are you happy the market has gone up of late? Well, take a good look at that child - because he is paying for it. All they've done is borrowed trillions from the Chinese, shoved that over to the banks, and now the banks are laundering it into the markets. And now they want you to jump up and down yelling "green shoots!" But it's a ponzi scheme. The market run-up is fueled by debt!
Debt your kids are on the hook for. To prop up banks that should have failed, and to opiate you into thinking all is well. Everything we're getting these days from the government and Wall Street is gimmickry. This whole "Q2 Earnings Better Than Expected" rally we just saw is a sham. Revenues across the board to the Fortune 500 are in the drink. So all they did was throw so many people out onto the streets, cut so many costs, that they made their earnings look better on paper - by shrinking!
More opium for you. Are you feeling good yet?
I need to use an analogy here - and I apologize to any 700 pounders I may offend, but I need to borrow your fatness for a minute to make a point. Imagine someone who has a job, and has spent all their money eating themselves into 700 pounds. Now, that person loses his job. So a group of strategists meet in the den to figure out a strategy for him. Instead of prescribing a diet, to bring food consumption in line with new income, and make the man healthier to boot, they decide to go out and borrow several year's worth of food budget and continue to prop up the same old eating habits.
A simple analogy? Maybe, but this is exactly what the clowns at the Federal Reserve have done. They went out and borrowed or printed a mountain of cash to keep the 700 pounder at maximin weight. So now a heart attack or stroke looms even larger. The Financial Heart Attack we're now due is tremendous. This is just another money transfer scheme. After all this, after all we've suffered, you'd think that money transfer schemes are the last thing your government would be doing to you. No, they are the first thing your government is doing to you!