Thursday, July 26, 2012

26 July 2012

I'm not too proud to admit that I am getting bailout propaganda fatigue.  I am tired of the can-kicking.  I think that this never-ending fiasco of band-aid after band-aid is actually more detrimental to the human psyche than dealing with problems today.

My first day of bailout fatigue was in spring 2008 when the Federal Reserve announced an emergency .75 basis point cut.  That had a huge effect at the time.  To show how far we've "progressed," we can't even make such a cut any more because we are already at zero.

The TARP debates were a significant source as well, and this Greek drama has been slowly becoming more of a comedy than a tragedy.  Now, its Spain and Italy.  Soon it will be France, the Netherlands and eventually Germany.

The fact that everyone should know is that the banks lent too much money to governments that had no way of ever paying it back.  The governments wasted this money by giving it out as entitlements instead of investing in the future.  The other fact is that the money did not exist before it was lent into existence at interest by the banks via fractional reserve banking (at least 8 to 1).  Since it was squandered, unless we can turn back time, there is no way it can be paid back in full with interest with the current amount of money in existence, and in my opinion, someone should not have to work (taxpayers, businesses) to pay back loans that required minimal work to create.  It is wrong, and in a way, is slavery.

Facebook, Zynga, and Groupon have continued to poke lower, lose Farmville cows, and be sold at a premium which looks like a discount.  If you were dumb enough to buy one of these stocks, you got what you deserved.  Shitty internet stocks are as close as the modern world gets to allowing Darwinism.

 Medium term slowed today.
Short term bounced pretty hard off of lows.

I am still a little weary about the consistent weakness in the medium term indicator, and the new low in the short term indicator despite the indexes chopping upwards.

"The only way to deal with an unfree world is to become so absolutely free that your very existence is an act of rebellion."
Albert Camus

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