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Submitted by Steve Meyers
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Friday, 18 May 2012 13:13 |
The markets are deeply oversold but bearish sentiment is still low. I would like to see a real washout before a V bottom comes in. I do think the central banks are about to hit the panic button and crank up the presses which will give us a lift. The system is irreperably damaged and soon, even QE won't matter. Keep your eye on gold. It was beautiful to see gold take over some recent safe haven flows. Remember, JP Morgan has huge exposure to the short side in the metals so if they go to unwinding out of necessity, we could rock. If we take out the most recent lows, then I fear a steeper correction down to 1350 is at hand. Treasuries are approaching that sell of a lifetime area that will never test you. We will be dealing with all the issues that Europe is facing down the line. Debt ceiling is fast approaching. The U.S. can never repay the debt without devaluation so why own a 30 year at 2.5%? Not with this kid's money. Oh, and same goes with Facebook. They can have it. Give me farmland with no social activity anyday. Maybe I need to start an anti-social network called Hermit.
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Submitted by Steve Meyers
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Tuesday, 15 May 2012 14:39 |
Here is a great lesson on U.S. finances.
Lesson # 1:
* U.S. Tax revenue: $2,170,000,000,000
* Fed budget: $3,820,000,000,000
* New debt: $ 1,650,000,000,000
* National debt: $14,271,000,000,000
* Recent budget cuts: $ 38,500,000,000
Let's now remove 8 zeros and pretend it's a household budget:
* Annual family income: $21,700
* Money the family spent: $38,200
* New debt on the credit card: $16,500
* Outstanding balance on the credit card: $142,710
* Total budget cuts: $385
Got It ?????
OK now:
Lesson # 2:
Here's another way to look at the Debt Ceiling:
You come home from work and find there has been a sewer backup in your
neighborhood....and your home has sewage all the way up to your
ceilings.
What do you think you should do ...... Raise the ceilings, or pump out
the crap? Your choice is coming Nov. 2012 |
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Submitted by Steve Meyers
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Tuesday, 08 May 2012 19:35 |
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Forgive me for not having a post for a while but I have been taking time off having some quality family time. Not much new to add to the markets. I believe that we are hanging by a thread. The thread may last a few months longer as there will be the threat of QE in June. The markets will collapse without added juice. Even with it, it is a temporary high that will give way to reality. Austerity doesn't work. Printing doesn't work. You have heard me say this for at least 3 years that there is no way out except maximum pain. The debt has to be written down and with 700 trillion of derivatives involved, nobody knows exactly how the implosion will take place. Own tangible assets and wean youurselves of paper. Have food stored up and have guns and plenty of ammo for protection. When the implosion takes place, a complete societal breakdown will follow. Be prepared.
The short term on the markets looks like a recovery into Friday then another possible leg to the downside in my opinion. Watch 1380-1390 SPX for resistance.
Gold needs to hold 1570 to prevent further downside. This is key going forward. At some point, IF QE resumes its frantic pace, gold will possibly test 1800-1900. @ years down the road I anticipate much higher prices for physical as we witness the death of the paper markets. |
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