Thursday, February 26, 2009

Where and who are the buyers?

The Government?


Goldman Sachs?

When you have just a few institutions buying, and our Government leaning on anyone that talks contrary about the economy, (because they are already all in) it means that the next buyers may come from the shorts.

Does anyone think that Jim Chanos will be on CNBC talking about his shorts in this economy? How about David Einhorn? Anyone think he'll be a honored guest on CNBC now that GE has a nine handle?

Goldman Sachs today lowered estimates for the S&P but also increased the target price. It seems that Goldman gets it.

Bernanke gets it. The banks don't have to face reality. They have already been given "forbearance."

The much heralded TALF is still on the on deck circle, but I don't think a lot of this matters.

The meltdown has been so strong, and so encompassing, and so discriminate (not indiscriminate because it has already taken everything down), that we really couldn't handle much more.

We've had a bid in oil, and we've had a fair amount of high grade credit issuance this past month. So the "unthawing" is slow, and it's only the unthawing of those that don't need the money!

But the winds of change are blowing, and they are blowing the bulls ways.

And this environment is so poisoned that even this statement sounds ridiculous.

But what we have seen over the past year, is that ridiculous wins.

Why would it be any different now?

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