Friday, January 16, 2009

Economic spin just changed from negative to positive

Buyers came in on high volume yesterday and the cash flow was more positive into the stock market. Last night the Asian markets rose 2% on average and this morning the European markets are up 2.8% in early trading. American market futures are up 1.9 % two hours before the American markets even open. The media will say today it is caused by the bail out of Bank America but we know the real reason is that the money that has given us our "New Regime" is getting ready for the inauguration and their economic spin has just flipped from negative to positive. The honeymoon is just beginning now.

The buying pressure is building fast now. There are just too many bargains and the short analysts and the pro-Obama media did their best to continue to create the illusion of the "Great Depression." Their negativism did achieve their main goal of a regime change here in the USA. But that was their prime objective anyway.

At some point in the distant future Soros and others will become disenchanted and will begin betting against the "New Regime" if not because they feel betrayed, at least because their greed will see the opportunity to short the American dollar. Then all hell will break lose as greed and corruption become front-page news. We have said from the beginning that ignoring "moral hazards" and rewarding greed have been the cornerstones of the economic bubbles and financial disasters we have seen. Some people will have to go to prison to set examples before this is over. Otherwise it will only get even worse and lead to violence. But that we hope will be avoided since the "New Regime" will have an opportunity to fight corruption and greed as long as the new president remains popular.

Good luck on your investment journey

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