Tuesday, September 23, 2008

TURN OUT THE LIGHTS...

The market is in total disarray. I have to tell you, even I thought we would bounce today late day. And, we did! Unfortunately it lasted for a half hour and then they just slammed us to death!

The hearings are insane. The core issue is that they are trying to force this panic bill out there under threat of the whole world ending, when really what will end is a few banks and the 10,000 level on Wall Street!

It's a joke. The best part was when they asked Paulson if the banks are going to sell the asssets for what they are worth and he replied to the effect that the banks won't take what they are worth, they need to pay them a higher multiple!

Are they insane? The banks want to sell the assets for more than they are worth! BUT, Paulson adeptly pointed out that over the long run the tax payers will make money!

Really? Last time I looked when you buy something for more than its worth, you LOSE money!

Also, comparing this to the savings and loan crisis is ridiculous! Why? Because there was a market for those distressed assets. There is virtually NO market for the assets they want US to take off the banks books at more than they are worth!

What's really behind this is the desire to try to manipulate the stock market HIGHER. That's all it is. It's beyond absurd and its beyond obvious. Yes, we should pay more than things are worth, not cut executive pay and not take shares in the stocks themselves to give us some upside!

Where do I sign? This is possibly the most infuriating government intervention in the history of my life. I've disagreed with a lot of things we've done as a country, but I can almost always see the other side of the ledger. With this, I can't see why we are doing this other than pure unadultered cronyism!

I loved it when Bunning asked Paulson when he was CEO of Goldman! That was awesome, I thought Paulson's face was gonna fall off! I'm sorry, listening to this today should make Americans sick to their stomach. This is shameful, disgusting and an abuse of the system and principals this country was born out of. I am sure the founding fathers of this great land are turning over in their graves. ANd, its not a Democrat vs. Republican thing, its disgusting across the board. They are playing Russian Roulette (why not, we're suddenly communist!) with our finances, our futures and our kids futures. All under the BS guise of the world is going to fall apart if we don't rush and do it today!

Yeah, ok, well, how come we didn't fall apart today? I bet we don't fall apart tomorrow, or the next day!

The only thing falling apart is the stock market, and you know why? Because it is VASTLY overvalued by any historical or fundemental measure. So, it SHOULD fall apart, the same way housing prices should have fallen apart. That's what happens, markets go up and markets go down, and that, my friends is part of life. Deal with it! BS happens and it happened today on capital hill, folks, and if you think that these people aren't messing with YOU, you are sadly misinformed. And, I've been killing this market, so I'm fine with it going up and down, I just really can't stand being lied to and manipulated. Tomorrow maybe we get turnaround Wednesday, but it'll have to come on news or capitulation. Funny, I thought stopping the shorts would save us! Who knew the shorts have almost nothing to do with whats going on? Funny, markets should and do seek their own level and no matter what the Fed does longer term this market goes MUCH MUCH lower. They will prop it up again, and we'll go lower again. When they finally give up is when we'll have a true bottom. See ya manana! WAXIE

10 comments:

harlow said...

Waxie,

I've been rocking in the "free" world or at least in the Nija room Tiny and you have helped me make some good money in this market. My friends have called to ask if I am ok cause of what they hear in the news they think I must have got crushed.

That said how much do you know about the federal reserve bank?

You think your angry now. Check it out it is not owned by the goverment or the tax payers. It is owned by a hand full of the wealthiest men in the world curtisy of Wildrow Wilson if my memory serves me correctly.

When we increase our national dept we barrow (print) the money for each dollar we print we owe the Federal Reserve Bank we barrow it at the current value and pay it back at a diluted value. In effect we pay it back at 2 to 3 times plus interest because of the obvious dilution and because we do not have to pay it back really. the pay back is in making everyone's cash worth less by printing more. If our cash becomes worth less and we pay it back we pay twice.

Who owns the Federal Reserve Bank?
some of the same people healvily vested in the same intitutions involved in the bail out. JP Morgan, Rothchilds, Rockafeller. to name a few.

Lincoln was very succesful at stimulating the economy simply by printing more money "greenbacks" he never borrowed the money just printed it. I believe this is why he was killed.

Do your own reseach it will blow your mind.

sanjay said...

How low will we go in s&p?How is an ETF like skf trading , isn't that fund in business of shorting the financials?Is it true that the specialists are allowed to short .....wow that must be like printing .

Pete said...

Waxie--It is amazing how consistently right you are.

I am sick over this whole mess. For the first time in my life, I have been upset enough to write all my Congressional representatives---not that it will do any good. Paulson's request is amazing: Give $700B with no review, appeal or any accountability at all.

Rich said...

I'm real interested in reading your comments on the Berkshire Hathaway/GS deal announced after market close today Waxie. Is this just another "buddy bailout" of sorts, or does it seem like a good deal for Warren Buffett & Co.?

McChief said...

I think Aaron Russo's (of Trading Places fame) documentary "America: Freedom to Fascism" on Google Video really shows what's going on behind the scenes... I can only hope this is about the government being stupid and not something more sinister.

Nice blog Waxie.

McChief said...

I think Aaron Russo's (of Trading Places fame) documentary "America: Freedom to Fascism" on Google Video really shows what's going on behind the scenes... I can only hope this is about the government being stupid and not something more sinister.

Mert said...

I agree. If you get a chance, read 'The Shock Doctrine' by Naomi Klein. It addresses quite well what we're witnessing right now. It's disgusting and sad, but what can you do?

Mert said...

Follow up....You can check out an interview with Naomi on Utube:
http://www.youtube.com/watch?v=zT4Fy-K8mWY

or even listen to her book on Audible.com . It helps to put things in perpestive.....

cheers

Tim Knight said...

YES!

Waxie said...

The total needed is MULTI Trillions, 700 BIL will be a drop in the bucket, there is a QUADTRILLION out there needed to deal with this. They really screwed up, folks, in a very big way!

I think S & P goes to 600s and I think Russell goes to 350ish. I think DOW goes to 5000s eventually.

BUt, what do I know! :)