Saturday, January 15, 2011

A Politician Who Gets It

Just a few comments. Before I start I want to say that it's a great day here in Steeler Nation as we prepare to watch our Steelers take their first step towards winning a 7th Lombardi trophy:




Getting back to the economy.  Former LA Mayor Richard Riordan was recently caught doing some truth telling in an interview recently.  He warns that 90% of the cities in this country will be bankrupt within 5 years thanks to unions who have corrupted the whole political system.

Let me do a quick side bar here before I continue.  I am very busy with business over the next month so I might not be posting as much as I usually do.  Work comes first folks because unfortunately blogging doesn't pay the bills.

Let me also add that I am disgusted at what's I am seeing on Wall St and in Washington.  The muni market is showing signs of collapse.  Food and gas prices are soaring.  Tunisia just overthrew their government because of rising food prices and a 50% unemployment rate among the younger generation. 

Despite all of this chaos, the market trades as if it doesn't have a care in the world while Rome slowly burns in the background.

The whole thing is absolutely ludicrous and I want no part of it right now.  In a nutshell: Stocks are too expensive to buy at this point, and the Fed's money printing makes shorting the market too dangerous.

As a result, I sit here in cash with my thumb up my ass waiting for this absurdity to end.  The way I see it, the next big event is the ending of QE2 in June.  The market will start to worry about this in March/April and I expect chaos in DC as the Fed tries to figure out what to do.

Remember folks:  Without this insane government spending we would be in the middle of a depression right now.  The problem is the government cannot sustain this Ponzi scheme without destroying the dollar.  We are broke and Moody's is talking about lowering our credit rating as a result of this stupidity. 

Enjoy the interview below.  It's always nice to see a smart guy who has a clue.

12 comments:

Hansi said...

"As a result, I sit here in cash with my thumb up my ass waiting for this absurdity to end. The way I see it, the next big event is the ending of QE2 in June. The market will start to worry about this in March/April and I expect chaos in DC as the Fed tries to figure out what to do."

Good point!

getyourselfconnected said...

QE will never end, see Japan.

Amazing win by the steel curtain! Wild game.

Geoff said...

Not just unions. Ellen Brown nails it with this article.

http://webofdebt.wordpress.com/2011/01/12/the-fed-has-spoken-no-bailout-for-main-street/

Jeff said...

Geoff

Great article. Thanks for sharing.

Another issue here is the states don't want to accept a bailout because they lose all of their power.

They would be at the mercy of whatever the Fed wanted.

They would prefer to slash the budget themselves and control their own destiny.

Jeff said...

Get

Not so sure about the QE thing. Japan owned their own debt.

Ours is owned by other countries(mainly China). We could potentially really piss China if we continue this shit.

They may decide to walk and dump their treasuries if we continue this crap.

Time will tell man!

As for the Steelers, I am in HEAVEN and I have no voice.

What a comeback.

Jeff said...

thanks Hansi!

flipdippy said...

The big boys are going to laugh all the way to the maldives again this year. They are going to run the markets higher then short commodities before qe2 ends and use those profits to run equities into 2012 again.

I bet they pull it off again this year but in 2012 the bear returns to rape everything in its path.

You should start blogging more about what the average joe needs to do to prepare since as you see fighting about algo trading is moot.

Jeff said...

Flip

You could be right. Depends on Europe and how well the dollar holds up.

I am starting to read some research about surviving this mess.

I plan on putting something together. I gotta admit, the research I am working through is pretty damn depressing.

There will be no coming out of this without severe pain for everyone involved.

Anonymous said...

i hear ya jeff, im sitting in cash too; who knows wtf is going to happen..

stocks keep ticking up on robot buying but i think this buying will end up in a sell off at some point; it has too. we'll all be truckin' along and wake up one morning to find the market trading halted because of another flash crash (1 year aniversary coming soon?) this will give the pig men the chance to get more shares cheap; gotta happen. just be watching close. shorts hitting all time lows looking attractive; i put a small position in on sds and tza .. who knows, so fr losing because of the robots.

good luck out there.

Anonymous said...

sorry in advance about the steelers :)

Jeff said...

"stocks keep ticking up on robot buying but i think this buying will end up in a sell off at some point; it has too."

I hear you anon and I agree.

I am starting to look at some 2012 PUTS on a few stocks.

They are extremely cheap since the VIX is so low.

No markets are open tomorrow. Futes are down 3 points. Trouble is brewing in Ireland. Writing it upright now.

SurfCityBear said...

Jeff
Thanks for all your hard work. I appreciate your efforts. Add me to the list of people that has left the stock market. My assets are all in cash and a paid off house. Hope this is the right bet.