Insider trading on Wall Street has reached a two year high, with those in the know dumping shares like they were radioactive. The Bear market rally is running out of steam about as fast as the Cash for Clunkers car bonanza. Do any reading on the net and you will perceive a general consensus that the false front happy talk of the "recovery" is really only something that was manufactured for public consumption. Since the public isn't consuming much of anything else, they have been fed a raft of phony profit reports, job loss statistics, and badly interpreted numbers on housing. The general media meme has been that happy times are just around the corner, yet anyone with real money tat risk has been bracing for the next inevitable evolution of the collapse now underway and wondering which banks will remain standing.
The so called "fundamentals" are all dark gray. Housing continues to lose value, foreclosures remain at an all time high, job loss remains staggering, and there is a pipeline of pain coming in the commercial sector that will make the first "sub-prime" loan loss wave look anemic. The people who read and think know what is coming. You won't find any of them on TV working for the news outlets. For truth these days you have to dwell in the blogosphere, and here is the consensus of thought there...
September and October will bring these fundamentals home to roost in the stock market like a flight of crows from a popular Hitchcock film. As the dog days of summer end, and the kids head back to school, the nation will head back to reality like a line of weary vacationers slogging their way along a crowded freeway. The last bit of happy green shoot talk will blanche into the autumnal ochre and amber of reality. The collective illusion that has characterized these last few months will give way, and we will finally be face to face with the stark realization that this Great Recession has now become a Great Depression. If Ben Bernanke doesn't want to be the Fed Chairman who presides over it, he had best resign soon and start writing his memoirs.
The rest is here in my Aug 15th article: "Collective Ignorance"
The so called "fundamentals" are all dark gray. Housing continues to lose value, foreclosures remain at an all time high, job loss remains staggering, and there is a pipeline of pain coming in the commercial sector that will make the first "sub-prime" loan loss wave look anemic. The people who read and think know what is coming. You won't find any of them on TV working for the news outlets. For truth these days you have to dwell in the blogosphere, and here is the consensus of thought there...
September and October will bring these fundamentals home to roost in the stock market like a flight of crows from a popular Hitchcock film. As the dog days of summer end, and the kids head back to school, the nation will head back to reality like a line of weary vacationers slogging their way along a crowded freeway. The last bit of happy green shoot talk will blanche into the autumnal ochre and amber of reality. The collective illusion that has characterized these last few months will give way, and we will finally be face to face with the stark realization that this Great Recession has now become a Great Depression. If Ben Bernanke doesn't want to be the Fed Chairman who presides over it, he had best resign soon and start writing his memoirs.
The rest is here in my Aug 15th article: "Collective Ignorance"
