Without a government crutch, all the big banks, all the big insurance companies, and all the auto makers would be broke. At least, that's what I take from the current situation. Hey, if you can swim, you don't need the life jacket. GM is currently camped out at the door of the Bankruptcy Court like a groupie waiting for a concert ticket. Our lying government already gave them what, $30 billion? The guy that sleeps in the White House proclaimed not long ago that GM was 'too big to fail'. That was at least what he was told by the man in charge - Ben Bernanke. By spewing this idiotic lie, the profoundly stupid American public didn't bat an eye at the first loan. Now, it looks like Bernanke will take over GM and write another check for $50 billion in the process. He now owns insurance, banks, and auto manufacturing. Are we sure this guy is not Bin Laden in a banker suit? He has a beard already. America has surrendered. We gave up because for the moment, it looks like our precious stock market is not in danger of caving in. In fact, we are still in the Bernanke rally that began on March 9 when our fearless printing press addict told us in no uncertain terms that 'large banks would not fail'. Well, BITE ME!!!
Freedom means you have the right to fail. You have the right to be an incompetent moron capable of running any company into the ground. Investors have the right to throw away all of their money because they are too stupid to see that companies that change their address to Bankruptcy Boulevard are not good investments. Americans used to hold freedom as something so precious that we were willing to send our sons and daughters into combat to defend it. Now, we are not willing to even let capitalism work so to hell with freedom. Bring the troops home on the next ship while we can still afford the gas to get them home. They are fighting for nothing! We have nothing but a fake-0 market built on lies and 'convenient' accounting.
Okay, the stock market is in rally mode. We may tack on another thousand or two points to the Dow and maybe even challenge 11,000. Isn't that what you want to hear? Aren't you willing to give up everything to see 11,000? Well, you already have given up everything. Yes, the stock market can rise with some of our biggest companies going bankrupt, unemployment topping double digits, GDP shrinking, and real estate dissolving. Our living standards are in reverse and the culprit is the printing press that Bernanke runs night and day. Printing money causes inflation. Ah, but some of that printed money makes its way into the stock market. Happy now? Sure, you are going to have to pay more for gasoline and groceries but think about all the rich bankers and politicians you are helping. And sure, you have already sacrificed the freedoms that our forefathers spilled blood to protect. But heck, we have a stock market rally. That's all we care about so Bernanke is gracious enough to give us a small sip from the cup of affluence. So what if we really weren't real estate geniuses after all. At least we are all still stock market 'jeniuses'. Trust me. When the stock market is going up, everyone thinks they are a genius. When it is going down, investors either withdraw their investor membership and run to some crappy fixed investment that pays them nothing or they whine that the government should fix things. Well, BITE ME!!
To top off the month of May, the WHO (White House Occupant) put forth a supreme court judge nominee that thinks her ethnic background of being a Latino woman makes her decision processes superior to that of white males. I suppose she extends her bigotry to African American males as well. For that matter, she is superior to white women, Asians, Indians, and anybody else that doesn't look just like her. All things considered, I think America deserves a person like this who will sit on the highest court in the land. Since we have taken a detour down Stupid Lane, we might as well go all the way and run naked through a briar patch. Of course, the average American can't even spell 'Supreme Court' much less have any idea what those people in choir robes do. Well, BITE ME!! What are you even reading this for? The only thing that matters to anyone is the market rally.
Look at the chart below. This is a one-week chart of the Dow with 30-minute bars. The index gained about 320 point on the week and ended just a touch over 8500 thanks to a 100 point five minute burst at the end of trading on Friday. In fact, the entire gain of the week was due to three of the 30-minute bars. Yep, the week's entire gain came from an hour and a half of trading. The message that Bernanke wants you to know is simple. His market will move in short bursts. Don't miss them. Besides, the only freedom you have left is the freedom to buy stocks! Think I am exaggerating? Wait till the next Supreme Court justice gets through with you and your inferior decision making skills!
Dow - 1-week 30 minute bars week ending 5/29/2009
Chart courtesy StockCharts.com