Greece and our markets

[cashmcall]

Oh Pleassssssse, Beware the Greeks bearing gifts... its debt. Greece is the consummate socialist shufflefoot empire. 75% of employees still work for the gov. How is this progress. They cut pensions a paltry 2%. They haven't sold off one state business. Promises promises promises. They have had 4 years to fix this and done nothing.

Austerity hasn't killed Germany. They are doing great. In fact they stand in stark contrast to the obama economy on endless QE life support. Japan has zero interest and they and the US are neck in neck each wit 15 trillion in debt and no end in sight.

Austerity is good. Greek gov unions have made their jobs part of the Greek Constitution. There is no hope for greece. It as to go off on its own and enjoy the fruits of socialism. But don't feel bad, the US is about to follow the unlimited debtor states into the abyss.

 

[cashmcall]

Well no blowthrough on 13000. Europe continues to quiet down and earnings of the S&P are still very strong.

I am absolutely certain that the Fed is going to go after mortgages with QEIII. As it stands now, the housing market still remains a total disaster mainly because of banks not moving the inventory into the marketplace. Bernanke and regulators need to force this action.

It is not deleverging if a homebuyer gets a mortgage and buys a property from a bank. That merely shuffles debt to some place else but doesn't change the aggregate debt. The longer they stall the worse it gets since the houses are in large scale disrepair.

There is a tsunami of foreclosures on the books and 30% or more of all housing underwater. This is the last year of the IRS discharge of indebtedness. So here heading toward the second quarter and and nothing is moving and the obama settlement of 25 billion is literally not enough money to do anything. Obama can't measure very well. Remember his 100 billion in cuts in his second year 3 trillion budget? He won the prize as the deficit hawk per liberals. Try a 14 trillion dollar housing market and 25 billion in relief. It is a moronic comparison.

Then there is unemployment. Steady for now but expected to rise again as a seasonal issue. Of course the last employment numbers were seasonal but sammy sambo never mentioned that. But if it goes down.. be prepared to hear the word's seasonal.

What about gasoline? This is an issue, it will affect the consumer. Months ago I said gasoline would sky due to the shutdown of all eastern refiners. The keystone pipeline that remains to be built, blocked by obama is to increase the flow to the Texas and Gulf refiners. But instead you can get your tax credit for some Chinese solar cells that you can attach to the roof of your car. Good luck.

The QE is the issue and the wealth effect are all that matters. Cramer was saying he did not understand the rise of gas, seemingly to not affect the consumer as yet. He did not hear complaints from YUM foods or retailers. What cramer has miss is three things: 1) this appears to be temporary. 2) People don't drive as much. 3) people are more secure in their jobs and not getting worried. 4) the wealth effect with the market clear recovery.

This doesn't mean that long term there won't be issue but in the 1970s there were gasoline shortages and gas was in fact more expensive corrected for inflation.

Airlines and UPS are not going to do well with gas and fuels going higher but Airlines as an industry have basically been destroyed by the gov. with its strip searching and shoving people around.

Railroads will do well. So its not like everything has been poisoned at least not yet.

 

[cashmcall]

End of day short squeeze. If any of your stocks tookoff, then you know the shorts were getting ready to kill you. You can tell by the scale of the move there was a lot of panic going. Don't assume the stocks were moving up because they suddenly got extra cheap. This is third top in a few days which basically means the market will settle back a tad. I am not going to short the markets; I think that is suicide but I am hedged slightly because I feel pretty certain that investors holding big long positions will want some downside insurance and they aren't selling because they are bullish. Its not fancy but it will work.

I bought some coal markers today. I know.. Obama hates coal; well he's a idiot. China has topped its coal production and since they will be simulating their economy, they will want to push for global steel production. The USA no longer has a single blast furnace. Instead they have some bankrupt solar panel gov operations. But China has blast furnaces as far as the eye can see. They make the giant industrial steel and the USA makes mostly rolled steel. Chinese Steel will expand big this year and they need both ore and coal but they need the highest grades of coal, the stuff sambo wants to eliminate because he thinks coal is dirty. He's a fkndope.

Ah... dow up over 200! That was my target for today if the shorts cleared.

Treat this like a bear market because there is no way April is up. April is always down because of Taxes and payment of tax. So they will orchestrate and early dump while everyone is euphoric over Obama and all he has done for America. I wonder if they will give him the nobel prize for economics this year..lol

 

[cashmcall]

the futures are up tonight as oil and gold rise. So what's this mean? It means as the market rises so does market fear. It is hard to say when the plug will be pulled on the euphoria but its interesting. Nobody's talking about debt... Now that's scary with 16 trillion in the debt hopper. But if it slows down you get qeIII so where's the risk. The USA is about to become one giant dot com lead anchor.