It was a slow day in the stock market despite the chaos we are witnessing in Washington.
Bernie Sanders basically blew a gasket on C-Span this morning. I thought the old guy was going to pop a clot at one point as he flipped out on the TBTF banks, tax cuts, and the rest of the villains on Wall St. We still have no tax deal and it's now only a matter of days until the cuts expire.
By the end of the day, Obama basically bailed on the whole fiasco and handed the baton over to former President Bill Clinton. From a PR perspective this is another disaster for Obama who seems like he is in way over his head politically.
Leaving the scene in the middle of a crisis hardly looks presidential. Obama once again looks like weak polictial ametuer in front of the world. When the kitchen got too hot it's obvious that Bubba ws called in to take the heat because it's clear Obama can't handle it.
The bond market didn't like any of this as the 10 year sold off all day. The futures continued selling after the close:
The Bottom Line
The 5 year yields also rose sharply today as they closed at a shade under 2%.
We should be in for a helluva week next week as the big showdown in DC continues. The markets were surprisingly quiet despite the theatrics in Washington. It looks like stocks are taking a "wait and see" approach.
Nonetheless, Bubblevision was busy all day rolling out one retard out after another telling us to buy stocks for next year. Several analysts also came out with bullish calls on the markets 2011.
Should be surprised? 2010's gains are locked in for the most part. Wall St's pump machine now must get focused on 2011 as they begin working on next years fat cat bonuses.
Great idea guys! Going long from here after an 80% bounce from the lows in 1-1/2 years sure looks like a good idea to me...NOT!
I will be the first to admit that I missed out on a nice gain the past two years in stocks even though I profited along the way with metals and bonds. However, it's only a gain when you sell and at some point Wall St is going to start taking profits.
The Fed can only string this economic disaster along for so long before they destroy the dollar and Wall St knows it. Their printing policy has already created huge inflation in China, massive deficits in the USA, and sent gas prices soaring past $3 a gallon in most states.
No one can no for sure when the music stops because Ben can do a QE 3,4,5, and 6. However, this can only continue for so long before the currency is destroyed.
Don't be fooled, when the printing press no longer works this whole house of cards is going to come tumbling down. Trying to time when this happens is a fools game.
Have a great weekend and I'll see you next week.