Archive for September, 2010

Time is ticking and Houdini is out of tricks!

There have been a lot of up one day, back down the next day moves in the market recently. I feel this is due to the battle between the reality of the economy (bad and not really getting better) and the Government/Wall Street’s created perception of the economy (not that bad and getting better all of the time) facade. Early in the rally, the Gov/WS had the upper hand mainly due to the fact that everyone wants to hear that things are getting better….they want to hear good news.

At that time, I had said that if the economy did not recover relatively quickly, before the Gov/WS had run out of wool to pull over the public’s eyes, the Gov/WS would wind up adding to the problem that they were trying to avoid. At some moment in time, the public would start seeing the reality and stop believing the story. While the Gov/WS was trying to get the public to look at one hand, while fooling the public with the other, the public would start to look at the other….now knowing this was all a trick!

Since that happened, the trick would not work and the public would not only lose faith in the economy, it would now start to build distrust in the Government and Wall Street. Well, it is starting to look like there are not many sheep left and the economy is still not any better!

 The proof of this was being seen months ago with the public scrutiny of Wall Street and it has now moved to distrust and disgust toward the government (take a look at the recent polls). I can not see how 2011 is going to be positive at this moment in time. Can anyone say Japan?