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Trading Primary Trends as Good Friends
Government agencies also carry unfunded liabilities exceeding $100 Trillion, according to Dallas Fed President and CEO Richard Fisher.
http://www.dallasfed.org/news/speeches/index.cfm
The so-called Debt Commission empanelled by Presidential Executive Order telegraphed its motives by denigrating Medicare and Social Security as entitlements in the pejorative sense, forgetting the social contract dating from FDR and the socialists.
Can more tax hikes disguised as reform be far behind?
The Euro standard today became similar to the Gold Standard of the 1930s, as the Smoot Hawley Tariff Trade disruptions of the 1930s and 1940s became the East West and North South imbalances today.
The strong Euro was blamed for hurting the economy.
Actually, corporate and political leaders did not care to take responsibility for over-indebting their companies, economies and trade deficits beyond ability to service the credit and deficits.
Perhaps it is easier to blame bankers and politicians for overindebtedness and credit default risk than to set our own house in order by getting out of debt and into savings. But do that we must.
Someone created the risk. Then they transferred it onto investors and taxpayers. This could only diminish the economy with a temporary bandaid fix.
It became clear credit rating agencies did not want to carry the water or blame for stripping most nations of their AAA ratings. They issued repeated warnings, including the UK and USA, without lowering the boom.
It may only be a defacto matter of time, considering the Treasury Secretary denied it to Chinese students and the American people. Official government denials have on the past come close to capitulation.
http://www.telegraph.co.uk/finance/economics/7153180/US-credit-rating-at-risk-Moodys-warns.html
http://www.ritholtz.com/blog/2010/02/policy-errors-dog-treasury-secretary/print/
February 26th, 2010 at 9:46 am
Aloha All
After posting this, we noticed out of 23 market indices, commodity and industry groups, only two have the 20 day moving average above the 50 day moving average. Curiously, these are the Livestock and US Dollar index.
Despite numerous calls for indices, commodities and industry groups like retail to bottom here with choppy markets, the trend may still be our friend.
Our one year anniversary approaches and we are glad about our longs on equities last March 2009 above Dow 6469, the dollar last November 2009 above 74 and the short sell on gold last December 2009 below $1226 and the short sale on the Dow below 10,729 in January 2010. Subscribers to Big4 and TopTen did better.
Stay tuned. We have a hunch things may be about to get much more interesting, reminding us of the old Chinese Curse: May you live in interesting times.
Mahalo Regards*Rich