Thursday, February 20, 2014

Market Bubbles


We just might be getting use to this game, as the inflated rise of any market pumping up and up till it finds a pin which someone starts to sell.  Bubbles, it's actually a cute term, we loved them as kids and even more fond of them as a trader, nothing but money until.  You just have to know when to get out and that's any one's speculation which has become such a complete science and your now an MIT graduate to crunch the numbers, utter nonsense.

Once again a man-made board of Monopoly that is so obvious where you can become a better player before the music stops.  Just like Nero played his lyre and singing while the city of Rome burned.  The Musicians of the RMS Titanic all perished with the ship when it sank in 1912.  They played music, intending to calm the passengers, for as long as they possibly could and all went down with the ship, all were recognized for their heroism. Now that right there is real unlike today's market, let's have a look.

BEIJING—China's factory activity lost ground in February, as a key gauge of manufacturing slipped to a seven-month low, signaling further economic weakness and rattling markets.  Also, a cut in printing money was announced just like the States.  The Hang Seng was down 271 pts.  And as for Russia right now a weak ruble, banking 'clean -up' is weighing things down, talk of recession looming. 

Japan’s national debt exceeded 1,000 trillion yen, (1 Quadrillion that's a first anywhere) or $10.46 trillion.  It’s now well above 200% of the country’s GDP and is larger than that of Germany, France and the UK combined.  Now a lot of this is contributed to more imports of energy, remember Japan has shut down its nuclear facilities because of Fukushima which is a disaster for the world, but your not supposed to know that. (as Rome burned) The Nikkei was down 318 pts.

Wow, that does not sound good for Asia, so how on Earth is this global stock market boom inflating so?  Europe showing no growth, ah yes the Federal Reserve printing machine is wearing out bearings!  Funny money sent to the rescue inflating stocks that are not showing growth from within,  just a play on the tons of hot money being pumped into the market bubble.  We don't know the true amount the Feds' are printing you can't audit the Fed and by the way, the board of The Fed exists of 5 chairs right now and 2 are empty, 5 people make that decision.  (The Musicians of the RMS Titanic)

It's true though the market is a screamer like a rocket and money was made so that ain't bad.  So a Thank You is in order to The Fed but if things go south that money is pinned on the backs of Americans' for generations.  I mean you think The 5 are going to bail us out?  They don't own that money people get slaved to it, we bailed out the banks and actually you can thank future generations of Americans' if this doesn't go well.  To bad, you won't be able to do it personally.  Will have to leave a message in a bottle, kind of like a time capsule, saying sorry man we got carried away, hope you understand we were high on a bubble.

Hey Warren, what should be done to those who need to be bailed out after a bubble? 

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