That headline might seem facetious but just a month ago we heard the exact opposite conjecture about a spike in the Baltic Dry Index and all that it "implied". I call this "thesis" trading... hedge funds, traders, and pundits seize upon any glimmer of hope - any atypical data point that does not agree with the other 47 data points in a series to create "thesis". Now, when the Baltic Dry Index was "surging" (from a historical rock bottom low) - jumping from scary awful to just awful we were told it was clearly signaling the globe would be recovering. CNBC would run reports every 2 hours about how the recovery was being signaled and how mustard seeds were in the air. I don't watch CNBC during the day but I can tell from my inbox (anxious people afraid they are missing "the recovery") and watching video in the evening. However, when the inverse happens (a 20% drop in said index in 5 days) the "fair and balanced" pom pom channel does not seem to be reporting about this ketchup seed. Instead I hear: crickets chirping. Other non TV financial pundits who have the same thesis appear to be.... silent. Perhaps they just missed looking at the chart the past few days (ahem).
So let's review : when 1 data point out of 50 agrees with the cheer leading aspect of coming recovery: report it, have the pundits latch on to it, have all the "you should never sell, buy and hold, average down, stick to the long run even when you are down 50% due to my acumen" mutual fund managers talk up said solo data point, and dismiss the other 49 data points that speak to the opposite. Weave magical tails about China being the economic growth engine of the world that will bring us all to nirvana (in "6 months" of course) - as the shipping index CLEARLY showed back then.
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Please tell me you mean the Arnold Schwarzenegger, make believe movie, End of Days and not the REAL end of days!
ReplyDeleteOh my, at least you didn't incorporate the word COLLAPSE in your post.
Uh, This is just too much.....I need to go lay down.
The are only two concepts you need to understand. One, Consumers and markets have assumed excessive debt. Two, there exists excessive manufacturing capacity that consumers cannot purchase because of the previous accrued debt. The antics of the government will not fix the problem. The debt will have to be written off, resulting in the collapse of different sectors of the economy and government. Now, sit down and study the historical results in previous economies. Now prepare you and your family to minimize the unpleasant implications of the coming collapse.
ReplyDeleteListen all citizens,one article or a half dozen repeat the same thing over and over. we are all in a time like when Roman citizens had so much faith in their govt they did not believe their empire would ever end. Wake Up! the goverments of this world represent the financial elites in banking. They screw up just like you and I do from time to time. However, this time it's over for them, and everyone will have to turn to God for everything! FAITH...FAITH....FAITH in Jesus Christ to the Glory of our Heavenly Father, the God of Abraham, Issac and Jacob. Not the mortal Goverments of this world.
ReplyDeleteIn early fall of 2003, Alan Greenspan was quoted on the CNNFN web site as stating "offshoring would be a disaster for Americans."
ReplyDeleteI have never again seen that quote from him. I know in his book Age of Turbulence and other works that he regards American workers as absolutely interchangeable and replaceable, and he regards the lack of unions as a benefit for corporate profits and stock market prices.
kiss our ass goodbye Thanks Arnold
ReplyDeleteour federal, state and local government pension system is the next shoe to drop
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ReplyDeleteFaith, my big a$$. God & Jesus(your imaginary friends) are not going to put food on your table or ammo in your guns. You'd better start preparing or you will soon be like a lot of fools under a big white tent w/ a big white cross, hungry as hell.
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