So what are investors afraid of? Oh my, Where do you begin?....Lets let Howard Davidowitz, chairman of Davidowitz & Associates explain why:
"The debt doesn't go away!":
I really don't have much to add here. I have been preaching the same thing on here for over a year now. The consumer will never reach the heights that it did in the early 2000's. The housing ATM is gone, and its time to pay the bill.
More "green shoots"
Since the consumer has been replaced by the governments balance sheet in the form of bailouts, one might expect to see corporate earnings swirl right down the toilet. I mean after all, the government isn't fueling any growth in the economy with their spending binge.
The're too busy using it to bailout their corrupt banking buddies. If they aren't throwing money at Wall St, they are throwing it into every company that has failed. Chrysler/GM ring a bell?
Regardless of who gets it, the money is not ending up in the real economy. The handouts usually just evaporate as they are used to mop up massive debts on corporate balance sheets. If the money isn't being used to mop up debt, its hoarded by the banks as they attempt to survive the oncoming depression that they all know is heading right towards us.
If the banks aren't hoarding the cash, they are sending it to their trading desks where it's used to manipulate our corrupt stock market. After they rake in a nice trading profit at our expense, it goes right back in the safe never to be seen again.
You didn't think they were actually going to lend that money to us did you? HA! The bankers are laughing all the way too the bank(no pun intended) after stealing $700 billion in TARP funds from the taxpayer..
Since none of the government stimulus is getting into the real economy, corporate earnings are COLLAPSING.
Sit down before you take a look at S&P earnings chart below:
Stunning isn't it? I thought those assclowns on CNBC said that stocks were cheap? HA! Your kidding me right?
Folks, I am not exaggerating when I tell you the economy is being destroyed right before our very eyes. All you need to do is look at the numbers. The real economy is crashing because the government stimulus is being thrown at the bankers and other corporate oligarch's instead of "we the people".
You think its bad now? You haven't seen anything yet.
A few questions for the powers that be:
Why didn't the Fed take their trillions of dollars and use it to create jobs versus bailing out crooks? Why didn't they at least use it to shore up social programs that are going to be desperately needed when this debt bubble collapses?
WHY IS THE MONEY BEING THROWN TO THE WALL ST THIEVES?
WHY ARE WE WASTING THE REST OF THE MONEY ON COMPANIES THAT DESERVE TO FAIL?
Remember the good ol' days where companies that failed went out of business? History has shown us that it's wasn't the end of the world when a bank or a company failed. Wall St would like for you to think that. They want you believe that if they fail the economy collapses and we all go down with it.
Funny, I don't ever recall seeing this happen before. We survived The Great Depression when thousands of banks failed. Guess what? New banks with healthy balance sheets would most assuredly take their place. This is how capitalism works!. The reality here is this is nothing but a mirage that Wall St has created in order to save their own asses via government bailouts.
The same goes for non financial companies that have failed. Has everyone all of the sudden forgotten that new companies can arise from the ashes of failures that have actually have a chance to make a profit? Perhaps if GM failed a smaller stronger car company would replace it that actually has a chance to grow and create new jobs! If AIG failed I am sure there are plenty of other insurance companies that could replace AIG.
I mean Christ: We have thrown $170 BILLION into AIG and what in the hell do we have to show for it? NOTHING! If they failed tomorrow are we all going to die? Doubt it.
That's it for me today folks. Its time to throw back a few beers and escape reality.
Depressions are much easier to tolerate after a few cocktails.