Biggest bubble of all time
- Thread starter Kicking
- Start date
all currencies are manipulated. ie Fed policy and the dollar.
China will one day be a net importing nation to feed it's 1.5bb. Guess where it'll be coming from??? The United States, and the newly formed working "slave" class from the aftermath of the largest credit debacle in history. Wake up, the US is becoming an exporting nation and it's in it's interest to debase it's currency even further. 60% of S&P500 earnings are now derived from export and service to Asia.
China will one day be a net importing nation to feed it's 1.5bb. Guess where it'll be coming from??? The United States, and the newly formed working "slave" class from the aftermath of the largest credit debacle in history. Wake up, the US is becoming an exporting nation and it's in it's interest to debase it's currency even further. 60% of S&P500 earnings are now derived from export and service to Asia.
So did you sell the financials last spring? Or the homebuilders in 2005? Or retailers? The stocks that CARE about these issues are ALREADY in the toilet. GOOG doesn't care about the banks. Neither does the Asian consumer. Hell it's ASIA that's BAILING OUT troubled U.S. balance sheets.
Im short but in it's a CROWDED trade. Sentiment is TOO bearish. I suspect if we don't fail big time on the Target news that we instead make new all time highs lickety split. Take a look at the DAX......
A macro that bothers me intensly
n the other side of the "short the U S equities markets" trade is an amalgam of sovereign govt's, no doubt more to be added as required. They can't afford to lose, they control rates, they have printing presses. That rattlesnake the shorts are trying to corner has become a 30 foot anaconda and not everybody's going to make it out of the room.
n the other side of the "short the U S equities markets" trade is an amalgam of sovereign govt's, no doubt more to be added as required. They can't afford to lose, they control rates, they have printing presses. That rattlesnake the shorts are trying to corner has become a 30 foot anaconda and not everybody's going to make it out of the room.Big difference between now and 1929 and 2000 is that stock market profits were a major source of wealth or the feeling of wealth then. This was a property bubble more than an equity bubble. This time it is housing and most of the related stocks have had big sell offs already. A/The sell off will be slower as real estate illiquidity will act as a brake on home equity writedowns. Being property driven, this recession will be much slower to get started but will gain rather than lose momentum over the next two years. As the lack of credit driven home equity spending spreads through the economy more and more businesses and sectors will report lower earnings and layoff staff. Look at Japan and Thailand as better references than 1929/2000. They are imperfect references as the equity driven component was larger than US now.
There are wild cards such as money finding its way into the market as a hedge against inflation.
There are wild cards such as money finding its way into the market as a hedge against inflation.
Contrary to what the propaganda machine is saying, the problem will spread way beyond the Gomez family and Mr ex trailerpark now living in his dream home (nothing down). It will affect many responsible people, and it will REALLY affect them when the resultant economic slowing causes them to be laid off.