FORCES AT WORK
By Stephen Rawls, Tipping Point Stocks Newsletter
The news letter from this trader starts with reference to previous news letter articles and a correspondence with a reader regarding positive and negative forces on the market, and then - this:
But still, we haven’t talked much about the 800-pound gorilla in the living room. Consumer confidence. As I mention in my reply to Frank:What I was trying to build is that there ARE even in this environment, powerful forces to support the market. Right now, of course, these positive forces are being canceled out by consumer pessimism for the very reasons you point out. Part of that pessimism, I’m convinced, is because 2008 was an election year. After all, at every level of politics, you’re not going to beat the incumbent if you agree that things aren’t really all that bad. Thus we’ve been subjected to a media tsunami of how bad things are.
No wonder consumer confidence is very low right now.
Now that the elections are over, some of that relentless negativism will recede.
Restoring that confidence isn’t going to happen overnight. Surprisingly good Black Friday (the Friday after Thanksgiving) retail sales would help. But even if that happens, so much pessimism won’t change soon.
Hmm... did the media cause this mess? I doubt it - but they sure helped push us over the edge, here's a reminder of how the media was pushing in a crisis before a crisis broke: Insanity on CNN, MOST AMERICANS ARE STARVING
The cat is out of the bag though and the media can't stop this snow ball. Below is an article that can't see a single light out of this cave and reassures us that the great depression is a joke compared to what's coming. Someone should tell this guy though that Obama won. He's pushing hard his newly discovered pessimism, gee thanks you genius, couldn't you tell us about it before the market crashed 46%+? (No he didn't, he published and pushed "fail safe" portfolio to his readers - see comments to his article)
30 reasons for Great Depression 2 by 2011
Just before you click and read that depressing piece of propaganda I'll let you in on something, he is basically bashing Ronald Reagan and low taxes policies. It's not that the economic facts are wrong, just that he manipulates them to find a guilty part:
Subsequent events, notably former Fed Chairman Alan Greenspan's admission of his failures in congressional testimony, prove that if he and other Reaganomic ideologues weren't so myopic and intransigent about proving their free-market deregulation theories, they could have acted earlier and prevented today's colossal mess. Instead, their ideology kept the bubble blowing, delayed the pop, making matters worse.
Yes, they knew. And still both Paulson, a Wall Street insider, and Greenspan's successor, Ben Bernanke, a Princeton scholar of the Great Depression, stayed trapped in denial and kept happy-talking the public for months after the meltdown began in mid-2007. Get it? While they could have put the brakes on this meltdown years ago, our leaders were prisoners of their distorted, inflexible views of conservative Reaganomics ideology.
His only beef with our newly elected leader is that he won't commit to raising enough taxes.
The economic situation is harsh and the outlook is bleak - I'm just pointing some fingers back at the media too.
Perhaps some reporters should go back to journalism school. Or Clown School, the results are apparently the same....