The fact is the US has always "deficit-spent."
The difference now? The Fed is de-valuing the dollar on-purpose to delay/forestay deflation.
With a falling dollar, foreign investors will not invest in US treasuries; therefore, the US cannot borrow effectively and will face the inevitable burden of debt with a relatively worthless currency.
So the credit worthiness is in fact negative at the present time. S&P is fully correct.
Now with continued adversity to the Fed plan, the US stock market could fall without the previous protection of threatened Fed ultra-drops in the dollar valuation.
Tuesday, April 19, 2011
Earnings are Terrible for Techs
If you've seen our favorite TV show, and if you can decifer the fog as we can, you can see revenues "appear" to be "OK" while earnings "kind-of" appear to be "OK" but just barely.
A Silicon Valley professional would point out that these firms keep a little stash of "revenue" in case they need it. But once you have to go to the "stash" then your earnings are kind of lousy.
But you just make up by saying the outlook is "OK."
Then maybe your stock stays up for a short time while you wait for someone else to say the sky is falling, and then you decide to say that it's in fact falling now that you look again!
A Silicon Valley professional would point out that these firms keep a little stash of "revenue" in case they need it. But once you have to go to the "stash" then your earnings are kind of lousy.
But you just make up by saying the outlook is "OK."
Then maybe your stock stays up for a short time while you wait for someone else to say the sky is falling, and then you decide to say that it's in fact falling now that you look again!
Congratulations to Intel
Intel apparantly beat its GAAP earnings estimate with its non-GAAP earnings.
Also dropped its gross margin 'OK to be bad' all the way down to 58% - uggg.
We're not buying this one. Not even for the so-called "cloud" otherwise known as fog.
Also dropped its gross margin 'OK to be bad' all the way down to 58% - uggg.
We're not buying this one. Not even for the so-called "cloud" otherwise known as fog.
Saturday, April 16, 2011
Japan Products or Piece Parts
Think about what you are eating and/or drinking or purchasing in the US.
Take a lesson from the Chinese.
If whatever you eat or drink can be produced in Japan, then you are most likely eating/drinking Japanese products that could make you glow in the dark.
Why worry in the US? Because no one else is stupid enough to eat, drink, or buy any such products.
Do you think your local grocer or PC salesman knows or cares? Think again.
Japanese products can be purchased at a large discount and everyone would pass them along without telling you!
Be careful for yourself and also for your investments.
Take a lesson from the Chinese.
If whatever you eat or drink can be produced in Japan, then you are most likely eating/drinking Japanese products that could make you glow in the dark.
Why worry in the US? Because no one else is stupid enough to eat, drink, or buy any such products.
Do you think your local grocer or PC salesman knows or cares? Think again.
Japanese products can be purchased at a large discount and everyone would pass them along without telling you!
Be careful for yourself and also for your investments.
Thursday, March 31, 2011
Newest House of Cards
The EU is great. The nations are raising interest rates and the Euro is going up! Superb.
How much money are EU nations indebted with?
Because NONE of it will be paid back. Of course, this will not be made fully evident until later.
Who paid for the WWII European war debt? (The US taxpayer alone?)
We all better have the right financial positions when that shoe falls on the existing house of cards...!
There is a US junk bond market too. These markets can be considered for near term exploitation.
How much money are EU nations indebted with?
Because NONE of it will be paid back. Of course, this will not be made fully evident until later.
Who paid for the WWII European war debt? (The US taxpayer alone?)
We all better have the right financial positions when that shoe falls on the existing house of cards...!
There is a US junk bond market too. These markets can be considered for near term exploitation.
Jobs Report
It's kind of a joke and can be manipulated by Benny as in the prior post.
If it's good, one could say that the economy is super! -OR- that QE2 will end early!!
If it's bad, one could say the world sucks -OR- that QE3 is a certainty!
Do you know what is real? It all depends on what Benny wants to be real for now.
If Benny has ever stolen some of your money, you may need help and guidance in this case...
If it's good, one could say that the economy is super! -OR- that QE2 will end early!!
If it's bad, one could say the world sucks -OR- that QE3 is a certainty!
Do you know what is real? It all depends on what Benny wants to be real for now.
If Benny has ever stolen some of your money, you may need help and guidance in this case...
The Wall Street Organization - of Benny the Jetster
From past posts, Benny is probably busy in council this evening before April Fools Day.
After the March-end financial reports for the folks who provide Benny money to play with, what does Benny have in mind for the month of April?
He in fact has until 4/4 to get conscensus and decide in this case because either Friday or Monday would be OK to start executing the April plan. In fact, this is great for Benny because he can also play Friday against Monday!
Will Benny think "lets see if we can make upward gains in April and then take it down in May since everyone on TV will follow instructions and say - sell in May and go away"?? -OR- will Benny decide that it's now time to switch TV from the "everything is great" strategy to the "6-nuclear reactor radiation cloud and war in the rest of world/oil price problem news" strategy?
Even Benny can't get timing wrong or some of his folks could get upset. :)
We should know by Mon. or Tues. latest.
If you don't understand consolidation and distribution, do not trade alone!
We understand everything.
After the March-end financial reports for the folks who provide Benny money to play with, what does Benny have in mind for the month of April?
He in fact has until 4/4 to get conscensus and decide in this case because either Friday or Monday would be OK to start executing the April plan. In fact, this is great for Benny because he can also play Friday against Monday!
Will Benny think "lets see if we can make upward gains in April and then take it down in May since everyone on TV will follow instructions and say - sell in May and go away"?? -OR- will Benny decide that it's now time to switch TV from the "everything is great" strategy to the "6-nuclear reactor radiation cloud and war in the rest of world/oil price problem news" strategy?
Even Benny can't get timing wrong or some of his folks could get upset. :)
We should know by Mon. or Tues. latest.
If you don't understand consolidation and distribution, do not trade alone!
We understand everything.
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