Monday, June 6, 2011
6 June 2011
The Dow is nearing long-term support from 2009 to the July bottom in 2010. Quite a bit is getting oversold so I'd wager that a bounce will come soon when the bailout is complete or rumors for another QE disaster start flying around. I'd imagine the debt ceiling will have to be raised in order to have another QE.
Notice how the economy (read: corporate profits and stock prices), the government, the unemployed, the pensioners, and about every other industry that has the govt involved are entirely dependent on new debt creation? And that that eventually that might not even work in the event of total loss of confidence? Is the borrower servant to the lender? What will people do to protect their retirements and their medicare?
"Successful crime is dignified with the name of virtue; the good become the slaves of the wicked; might makes right; fear silences the power of the law."
Lucius Annaeus Seneca
at 10:45 PM