Anyone see this Reuters headline today?
U.S. economy at risk of double-dip recession
WASHINGTON (Reuters) - The U.S. economy appears destined for several years of weak growth and high unemployment that leave it vulnerable to a recession relapse after the massive dose of government stimulus wears off.
While tepid growth looks likely to resume late this year and build modestly into 2010, the credit bust has left households and businesses unable or unwilling to borrow and spend as freely as they did before the crisis.
Double dip? This was covered two weeks ago. And this Reuters news is analysis?
That headline makes as much sense as those who now say we are now heading into the 5th and final leg down of this market. It's just Poppycock.
This economy, and this stock market, will reward the most outlandish bull, and the most bullish economic forecasts. It's not a market, or an economy for the timid.
This market will give no quarter to the bears, no quarter for the pessimists, and no quarter for the professors and their statistics of gloom.
It will also give no quarter to the deflationistas, and no quarter to anyone who thinks our Government paper is worthwhile holding.
So short PIMCO, Peter Schiff, Whitney Tilson, Nourel Roubini, and Blackrock Bob Doll's conservatism and any other money manager of the same ilk, and go long Pollyanna.
Because that's how you are going to make money.
Today, this stategy will be known as reckless.
Next year, it will be deemed prescient.
The market already recognizes the fact, and recognizes that Q3 will be the start of the boom. You don't need long winded appraisals of how long it will take for this economy to mend, or need to heed any of these bearish prognostications.
Because if we were going down, how come the market couldn't get through 880?
And why is it that nobody wants our Treasuries, despite Bernanke's Quantitative Easing? Wouldn't people buy our paper if we were still sliding headlong into deflation?
Has anybody figured out that just maybe, the market is right? And that it foresees the coming economic boom?
Everyone is still so worried about Armageddon, that they think the bond market is going to implode, because the world won't want our currency.
That will be a first.
A country in an economic boom, with a currency nobody wants!
The bond market, doesn't need any help, on it's way to it's own implosion. That will happen quite nicely by itself, and those in the deflation camp, will soon come to that rude awakening.
You are already seeing the massive shift out of bonds into stocks, by the rocket scientists that run our nation's money.
They're buying because their jobs depend on it!
Now if we see this behavior by those who run money; why is it that we somehow think that the unemployed won't find new jobs?
Didn't we just see that 21 states had their unemployment rates go down?
Oh, but wasn't that supposedly a statistical quirk caused by the too proud college kids, who wouldn't say that they were unemployed?
What do these bears think? That all the nation's grads hang out in LA?
Maybe they should just listen to some old Led Zeppelin. They can start with No Quarter.
They choose the path where no-one goes.
They hold no quarter, they hold no quarter.
Walking side by side with death
The devil mocks their every step
This market is the devil's bird thrown at the bears!