Cash For Clunkers ... and now "Cash For Traders"

Before I get into the "Cash For Traders" topic, I have something to share with you that is very disturbing. I am getting spammed... that's right, spammed by the White House. I have never asked for e-mails from the White House, nor have I signed up for e-mails from the White House. But for some reason David Axelrod, a close adviser to President Obama, feels he can just e-mail me at will trying to sell Obama's universal health package.

Mr. Axelrod please stop this practice now! (see White House Spam here)

I never ever envisioned the White House becoming a spammer, nor did I envision the White House resorting to spam tactics. The White House is using the same spam tactics as every other con artist. You know the ones I am talking about... get-rich-quick schemes and work at home deals you see all over the internet.

David Axelrod come clean with all this spam business, show some respect for the White House and your position.

That's my first issue cause I'm mad as hell and I'm not going to take it anymore.

Here's the next one ...

So just how much money has the government spent to support/stimulate/resurrect/resuscitate the economy? I always believed that the problem that caused the recession was over spending and the use of credit. So here we have the government trying to bail out the country by spending even more of our money.

Does that make sense to anybody?

I'm going to get to the "Cash For Clunkers" and "Cash For Traders" point in just a moment, so bear with me.

It just amazes me how we keep throwing money at problems and not letting the problems sort themselves out in their natural order. Here's a case in point, GM, this company was mismanaged for years. It was run with arrogance and with no attention to what was going on in the world market. It had no idea that the world was changing and they couldn't say NO to the unions. It was just easier to say YES and let someone else worry about that problem later on.

So what does the government do for GM? It gives them billions of dollars, which in my opinion will never be paid back. Rather than give the money to new, innovative car companies like Tesla and Aptera, they give it to a dead in the water, not going anywhere, fast company like GM.

Tesla and Aptera, two exciting electric car companies are creating the transportation of tomorrow and are streaking ahead of GM in both design and technology. Okay, that's my take of the automotive industry.

After giving billions away to the automobile manufacturers the government decides to give the public  money to trade in our own cars for new cars and take on even more debt.

Does that make sense to you? Why would anyone, including the government spend $4,500 to buy a truck or a car that's worth maybe $500. Come on, even an elementary school kid could figure out the math on this one.

These are cars that would have eventually been traded in anyway, but no, the government had to spend several billion dollars to make everybody feel good. It's a nutty, nutty program. When the money runs out and it will, do we just print more money or do we let the market decide?

Once the government stops supplying the fuel for demand the fire will go out.

Now you know how I feel about this government's spending in the automobile sector. What do you think?

Next, let's take a look at the financial industry. How can we forget AIG, Bear Stearns, Lehman Brothers, Goldman Sachs, Merrill Lynch, Bank of America, and a host of other financial institutions that have taken money or have been absorbed by the government/private sector because they were deemed to big to fail.

The reality is, if they were stupid enough to get into so much trouble why are we keeping them afloat and rewarding clown like behavior. When historians look back at history, if we still have a country by then, they will say to themselves "what were we thinking in '08 and '09?"

Where were all the regulators, and where were all the politicians who pushed this crazy program that everybody should have a house. Republicans and Democrats are both guilty of this. It didn't matter if you had no income, didn't have a job, you were owed a $500,000 house... that was the American way, or should I say the political way of getting re-elected.

The other thing that is very frustrating is that many of the politicians who approved all these wonderful feel good programs are the ones that are trying to make things right by spending even more money. It just doesn't make any sense to me that we have spent our children's futures because of the inability of politicians to say, "no you can't have that."

Okay, we talked about "Cash For Clunkers," now let's talk about "Cash For Traders."

Did you get your trading check from the government yet? I didn't get mine and I'm pretty sure you didn't yours either.

But do you know who did?  Goldman Sachs.  Yes sir, that's right, they received a ton of money from the government. Now here's another little factoid, more than any other financial house Goldman Sachs has an indisputable relationship with the government which is very deep, very high up, and wide spread.

I am not big on conspiracy theories, but this one just defies logic and therefore bears thinking about. On Wall Street, there's no free lunch. So, here's what I think happened behind closed doors when no one was there to record it. I believe the government made a deal with Goldman Sachs and asked them in not so many words to juice up the market as a payback for all the money they had received from the government.

Why else would the stock market that has the worst fundamentals since the great depression rally some 40 plus percent in just a few months. I have asked around and spoken to many of my trading peers who are also at a loss for words to describe and explain this rally.

Now that brings us to the gold market point I want to make, which is my last, "I'm as mad as hell and I'm not going to take it anymore"."

Why has gold been held below the thousand dollar an ounce mark for over a year? Given that the economy is not going to recover anytime soon, given the fact that the US dollar is headed down and will probably erode away. Gold should be higher on those facts alone.

The gold market is not that big of a market and it is fairly easy for a very big player like Goldman Sachs to keep a lid on the market.

Imagine the gold market rallying over a thousand dollars an ounce and the press reporting on it and the general public flocking in to buy gold at any price to protect themselves against a total collapse of the banking system. This is why the gold market has had a roof on it to keep it below the $1000 an ounce level and stop a run on the banks.

We had better cross our fingers that President Obama doesn't do what President Franklin D. Roosevelt did when he issued Executive Order 6102. This Executive Order signed on April 5, 1933 by U.S. President, Franklin D. Roosevelt, "forbidding the hoarding of Gold Coin, Gold Bullion, and Gold Certificates" by U.S. citizens. That was the law of the land in the US for over 40 years, hard to believe, but it's a fact.

Can it happen again?

I would say based on the way our government is acting, anything is possible.

As I said earlier, I do not believe in conspiracy theories but this one has got me wondering.

What do you think? I invite you to leave your comments on our blog.

Greetings from Maine and all the best,

Adam Hewison
President, INO.com
Co-creator, MarketClub

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105 thoughts on “Cash For Clunkers ... and now "Cash For Traders"

  1. http://en.wikipedia.org/wiki/The_Rip_Van_Winkle_Caper

    owning gold was once worth talking about. In the near future it will be energy.

    I can't understand the "bailout" of banks, AIG, GM etc either.
    Let them fall and their pieces picked up by younger swifter companies.

    As far as some of the "commie", conspiracy and racist rants here. Please, what century are you in?
    If there is anyone to blame, it is us. We have allowed a long series of shiftless, cheating, useless, greedy clods to be repeatedly elected/appointed to run all 3 levels of gov't. Fed, State & Local.
    Everyone is happy when things are good, but no one wants to be responsible when the shite hits the fan.

    Dump all the incumbents and all appointed gov't positions(including the Supreme Court) and no one over 65 may serve.
    Sound age discriminatory?
    No, there is a place in our modern society for people over 65, they should take positions in teaching.

    But at least Iraq was and continues to be, well spent money.

    The sky is falling.

  2. Amen bros. Nice to see that someone actually understands what is happening "THE TRUTH". The real powers (in the shadows) that run this country WANT these things to be happening. Think about it: why would this govt. NOT PURSUE DEVELOPING OUR DOMESTIC ENERGY SUPPLIES (WHICH ARE ABUNDANT) which would get us off foreign oil and put many back to work with good paying jobs? Why would they NOT want to build several modern nuclear power plants? The anser: they have an agenda that does not include what is in the best interest of this country. What about the repressive taxation and over-the-top deficit spending? Are they trying their best to run this country into the ground or what?

    Do not pay any attention to their lies. WATCH WHAT THEY DO...THEN THE TRUTH WILL BE KNOWN. Your government is not your friend.

  3. Where are all the Obama voters from last Nov.? With a little due dillegence on the voters part this ship wreck would have been avoided.

  4. Adam,

    I certainly agree about the gold market (and everything else you have written). Being long gold should have helped me at least a couple of times over the past months. But all my options have expired worthless.

  5. I have recently become a Adam Hewison student of investing. As i do agree with many things that he said and that I agree that the Obama administration has made blunders. I, being African American{black} voted for Obama, but I am a fiscal conservative and social moderate. I agree that even though GM has gotten bailed out, there culture will be the same cluster as ever. I agree cash for clunkers is a band aid on on a Shrapnel wound. And I think the health care idea is too big of an apple to eat all in 1 bite. The thing is I don't see any conservatives not taking advantage of the cars for clunkers. I wish we would come up with ideas instead of criticism and blaming. Here's my 1st approach to the health issue. Cut cost on medicaid and medicare 1st; by making procedures have the same price. For example some doctors charge $200 for and X-ray vs. others who charge $1500. This should be a flat rate. Don't Complain got forth and fix somethin'!

    Thank You!!

    Ron

    1. So wait a minute, you mean you threw out at least 1/2 of your morals to vote for Obama simply because he was black? Or was it because "he's SOOO presidential?"

      This country once elected a president based soley on his looks. His name was Warren Harding, and he is (currently) considered the worst president in the history of the United States: http://www.bing.com/search?q=warren+harding+worst+predisent&form=QBRE&qs=n

      By the way, your idea for making procedure a flat rate is not reasonable. Taking your x-ray example for instance:

      Patient 1 has a single fracture of his femur,
      Patient 2 shatters his femur.

      The xray tech has quite a bit more work and responsibility for examining patient 2.

      You see the medical system is complex, because (you guessed it), medicine is complex. I don't understand why everyone wants to "bucketize" everything

  6. I couldn't agree with you more Mr. Hewison. You are right on in your analysis. I would strongly urge you to watch the blockbuster and professionally filmed documentary called the Obama Deception. It exposes what is going on behind the scenes with Wall street and has recently been viewed by millions on You Tube. You can watch it on You Tube and it's worth every minute of your time.

  7. One other point about the current situation. It is true that nobama did not create the mess we are in. It was created by a long line of liberals (communists) that are completely committed to destroying this country from within. Theirs is a marxist ideology which has been proven multiple times throughout history to not work. To this date Barney Frank et al will not accept any responsibility for their roles in the housing meltdown [subprime] and the resultant debacle of a stimulus plan that did not, nationalization of banking and the auto industry, continued abuse of our financial system by the federal reserve, the attempted takeover of the health system, etc. etc. are evidence of the liberals at work as they have been for decades.

    The most immediate thing that needs to be done to stop this slide into pure communism is to vote congress out and start over. There needs to be term limits in congress to stop these criminals from setting up shop for a lifetime which perpetuates the damage they can do.

  8. Comments about GS are right on the money. I have watched the russell mini futures REPEATEDLY turn at important inflection points time and time again when it was quite obvious the market wanted to go down and stop and roar back up even on days when the fundamental news was horrendous. It is amazing to watch the charts intraday and see the gross manipulation and it is blatantly obvious as it is happening.

    I have learned that the markets are not grounded in reality. It is nothing more than a big video game and the only way to trade it is to utilize patterns and work the bar range probabilities. A trader has to know that anything can happen and that it is not necessary to know what will happen to make money. And be able to assume the risk on the trade.

    It is a shame that our country is headed the way it is going. I believe that we are in the end game as most democracies have not lasted much over 200 years. Americans have gotten too soft and decadent and are not as self-reliant as we need to be.

    "The government that is big enough to give you everything you want is big enough to take it all away".

  9. Even though it doesn't sound like most of the people on this blog voted for Obama, we are all getting what we deserve. He won by a landslide.

  10. Hey Adam,

    With all due respect I think your off a bit.First, your right when you decline to talk about conspiracy theories, there are none, never have been none and you will be labled a wacko if you believe in them. The truth is they ( the so called conspirators )have an AGENDA that they cannot allow the public to understand. No doubt about it any half-wit that pays any attention to the world around them understands that Goldman Sachs is part of THEM. As far as spam goes what's new anyone who looks a little deeper already knows that the government is the biggest hacker and spammer by far and the reason we can't have a secure internet system, they won't allow it.
    As far as GM and the unions go sounds like youv'e been drinking too much conservative talk show kool-aid. Did you notice that Toyota had it's worst showing ever as well. If it was all about how much they pay their employees and that GM would have been fine if they had a pay rate like Toyota's then Toyota should have been doing fine while GM failed.
    My last problem I have with your take has to do with your comment about selling our childrens future down the road, once again just standard conservative talk show BS. Both parties have been doing this for so long nobody really know what that means.
    Please take no offense to my comment's, nothing personal meant by them. I truly love to here your market take and tell other people regulary to check out your site.

    All the best and good trading to you, Robert

  11. Take heart America, brilliant minds of freedom loving men and women are, at this moment, preparing to convene a Continental Congress with the intention to force the Federal government to redress our grievances. Our grievances are fundamental inthat we have observed that the Federal government has been operating outside the delegated authority and these actions are causing great harm. This is our right and our duty to demand that our governing institutions obey the charter by which they were formed, i.e. The Constitution for the united States of America. We Americans have a tradition of doing this; we threw off a belligerant king when he would not follow the rule of law and we put down the bullies of the Wild West when We the People made them follow the rule of law. This is our land. We live in a Republic, not a democracy. My rights came from my creator not from the government. My rights do not depend upon a majority vote. A fundamental principle in America is that the individual has the right to own property. If the individual's property is taken away by deception then he can bring a grievance and it is the communities responsibility, via the government to remedy it.
    Come join us in our epic adventure. Each State will send three delegates to the Continental Congress and you can be a delegate. For all the details go to: http://www.givemeliberty.org

  12. Well, your right in the gold and Silver department. It is being held down but not necessarily by Goldman, although I am sure they have a part in it. JP Morgan and the Bank of America all have lots of positions on the Futures markets. Check the COT stats or read Ed steers column. Every New York open they drive the price back down. This has been happening for about two years now. They decide where the price goes not the free market.

  13. It wasn't the Obama administration that got us into this mess. We Americans have been living well beyond our means for a long time. You may not like the way he's handling the situation but where the hell was your angry voice when previous adminstrations were spending like drunken sailors on wars that went nowhere, defense projects that were indefensible, and pet projects lobbyist and special interests were clamoring for and calling it national security. No, Obama didn't get us into this mess and it's going to take a life changing reality event for us to start living within our means.

  14. The lack of regulation that allowed the finance gang to turn the market into a self serving casino; the failure to have a comprehensive national industrial policy, read Chicago School, Milton, has shown the folly of not accepting the reality of being a member of the global economic community and reacting to the only real absolute, change. Whatever label you wish to attach to present government activity, measures that are geared to maintain the status quo in the face of the present economic turmoil, facts are, that in the long run, turning to past remedies for a maloderus system,is only treating the symptoms and not the whole entity. Furthermore,tea bagging and "aint it awfuls" simply won't cut it.

    1. William, I keep hearing the "regulation, regulation" mantra. This is such a weak and baseless argument that I can't belive it still exists. Want to know the problem with this argument?

      1. The regulators are politicians. Politicians need lots of money to get elected. Politicians get lots of money from "the finance gang" and other "special interest" groups. Politicians make promises to these groups so that they can get re-elected. These promises short circuit any hope of "regulation."

      2. Regulations are written by lawyers, and most politicians are lawyers. All politicians have to be dishonest in order to get enough money to be elected. See the problem here?

      You see, you still believe that the government is here to help you, otherwise you'd never be liberal. The fact is the government is a horribly corrupt, disingenuous bunch, which only serve themselves. Therefore, any citizen with a shred of common sense would want to limit government size, control, and spending.

  15. I lost my business a couple of years ago and also have lost a fortune trading. Why dosen't the Government bail me out. I've a few herd auto adds on the radio and the dealerships have raised there prices so they are the ones collecting the cash for your cluncker. Its obvious that there is manipulation going on in the markets. The rallies take place overnight. It will all come crashing back down.

    John

  16. Hi Adam,

    The late Hollywood director Aaron Russo acknowledges and is highly aware of the ills America is been led into. He tried to make a difference and create this awareness via his documentary - America: Freedom to Fascism

    You can catch it here:

    http://video.google.com/videoplay?docid=-1656880303867390173

    Do your own research and you shall be enlightened as he was and the many others who are. God bless the common Americans.

    Yours sincerely,
    Norman

  17. Adam
    I believe that Gold will go up to around $2,000 in the next couple of years; why it hasn't now, no inflation and everyone is kind of waiting for that second dip in the market.

    As far as GS, yes it appears that they have been favored. Why? Some major ass kissing but who knows who, how and exactly why...but I sure would love to know the story.

    Obama has some charisma and was elected by the lower trashy class, the dumb, dumber and the idiotic movie stars that are just plain lost in life without any sense of direction. As far as why they didn't give the money to an innovative company that was my question from the start. But I thought they must know best, I have always had way too much respect for our insane politicians. I am not an intellectual individual but my gosh, WTF were they thinking, bailing out GM..Yes GM has been an American favorite but times constantly change and they didn't change with them and became fragile due to lack of leadership.

    Obama is trying to fix everything in the first 200 days as it appears to me. I mean is this guy really this naive? You just can't fix everything by printing up money and charging it to the taxpayers, he may have been an excellent President in different times but not during a time of financial collapse...unfortunately this may have been the only time in history that he would have been elected, who knows?

    The next couple of years will be interesting, hopefully the spending will slow down, it's NOT the answer people!

  18. your rant is amusing but hard to follow! the destruction of licensed and insured transportation will certainly come back to haunt us!stock up on ammo while you can!

  19. All of the tax money going to these new loans that will not be paid! Then we are destoying the product we are buying. I need to by used car.... what used car. wake up people!

  20. You are right on Adam. It is sickening. My question is, When will the American people stand up and demand a stop to this Crooked Capitalism?
    We are being trampled on by the very same group we vote in every few years to be our mouthpiece. This happens at every level (city, state, federal).

  21. The Good Book says "there is nothing new under the sun." If you read it you'll know how this whole mess will end... and I believe it. There is only one solution but you'll have to read the book for the answer. Best of luck traders. Big E

  22. It would be helpful if people would start recognizing this take down of America is intentional, it is not by accident and it is not stupidity. Recognize what is going on please.

    1. Dear Karen, your possibly the only person out of all whom understands

      the overall plan,you've probably seen the pix of Bush 1 holding hands

      with the saudi king, He who by the way was head of the C.I.A and all

      black operations run by the U.S. and even more dangerous a skull&

      crossbones, He still wears his Brightling proudly!now we set the

      stage; he makes a pact with his best and wealthiest friend to

      deliver something that money couldent buy, a place where his best

      friends could populate away from the excruciating heat, sand, tribal

      in fighting a place that was lush and green, but how to do this

      with out firing a shot? now the unexplainable meltdown becomes

      christal clear! who could controle every aspect of our government,

      who would have the contacts needed to carry out the intricate plan,

      what family has been in power (in recent time) to carry out rigged

      elections, in plain sight as doccumented on television,and in movies

      to help carry out the time frame needed to make this diabolical plan

      come to fruition, on a nation that will be so poor it wont be able

      buy a bullet much less a gun.. crazy eh. aw this could only

      happen in a country where greed has become G O D.

  23. Adam

    Wow, so many people expect the world to fail. What is the sky falling, the sun stoped riseing in the east and setting in the west. Do I not have any needs left in life that I can move my family to the bush and live on nothing. Build a small cabin that is a days walk to nowhere, crap in the woods along side the bears and carry water from the brook that drys up three times a year. Say it is not so. I was raised close to that way but we had a out house and a well which we carried water from. Do not want to go back to that and my wife will difinitely not go back to that either. What our fathers have built is good and we need to continue to improve what we have.
    Gold is for no tomorrow, energy is for building a tomorrow and improving what we have. Norm

    1. and gold my friend helps you to store value so you can buy energy that is more difficult to store.

  24. The Stimulus only increases government, and has done nothing to provide jobs, and is a collosal waste of my tax dollars. Health care needs to be fine tuned, not turned into some government run program. The government can't manage their way out of a wet paper bag with an exit sign, even if they had a trail of spending bills that wouldn't have any long term affect to follow. These left wing liberals are living in some sort of super bubble that makes them think that their untouchable reality is really real. I have news for them. America in general is pretty pissed that this is happening, and it's a big picture thing, not just one item. It's too much money to just arbitrarily print, and China isn't taking any more of our debt. Inflation ? yeah, here we come.

  25. I never like to be to simplistic, but the real answer to all that ails us is to bring the jobs home, case in point, GM today reports that it will put 1350 people back to work soon because it needs to produce 66,000 more cars than thought by years end, and where are they putting these workers back, Ohio and Canada, why after how many billons of American tax dollars spent are not every one of those jobs right here. The American people are a predictable bunch, bring the jobs home, pay them well, and they will once again spend their way to the American dream, while the Government quietly taxes them to their benifit. Just imagine a world where the trade deficit was tilted to our advantage, we are paid well and, we paid ATTENTION to every bit of legislation the Gov. put forth as well as we have towards healthcare....what a world huh?

  26. You're obviously "spot on" about the chenanigans with Goldman Sachs and their manipulation of the market (and keeping gold down as well) ....Furthermore, with their High Frequency Trading platform Goldman Sachs creams off millions of pennies on trades as well.
    It stinks and so does all the stimulus packaging because it takes away the normal financial understanding of what should logically happen.....but Obamacare is different. That I can believe in!! if it truly encompasses healthcare for everyone EQUALLY. It is only socially responsible that those who have more pay more taxes to jointly cover "health" for everyone. In US with your medicare/medicaid you have free "care" CONCENTRATED on those who most need it (the extra young/old and invalids). With EVERYONE in the same pot there would be many more taxes collected but not so many more patients to care for! Plus you have great bargaining power over pharmas, doctors, hospitals. Plus economy of scale.Besides private health insurance does not allow total freedom, does it? you 're forced to go to specific doctors/hospitals, you have to get permission for treatment, etc....Plus how much do you have to pay to ENSURE that you are truly covered for everything??? Insurance companies will always wiggle out of paying, if at all possible,since they are out to MAKE A BIG PROFIT.
    Are you not MAD about the extortionate pay and bonus these guys keep for themselves?

  27. 1] I agree in principle with all you say
    2] Your voice, my voice and apparentally the vote voice of all the US
    don't matter and won't as long as corporate lobbying and no term limits exist
    3] Everybody keeps talking about future generations, what about the
    past generation that is still around trying to exist on fixed income or limit their exposure to extreme risk. Comment excludes government
    retirees with their cost of living increases.
    4] Can't really blame Goldman Sachs, anyone of us that was granted the
    advantages they have bought for themselves would exercise those advantages = (see 2]above)
    5] This country will continue its failing as long as the 2 party system acts like running the nation is a high school football game with the Coastal Donkeys vs the Midstate Elephants
    A friend of mine was asked by his young son the difference between Democrats and Republicans. After thought, his reply: "Republicans want to steal all your freedoms and Democrats want to steal all your money--and they're the same thing" (This was before the present situation and the Patriot Act)
    6] Why do people who pay no taxes get to vote?

  28. The lunacy of some of many of the comments defies belief.

    The lunatic fringe is certainly alive onad well on your blog, Adam.

    Not interested in this s**t but in the markets.

  29. Good points Adam and I think your concerns, whether founded or not, are shared by many. We'll never really know the full extent of all the BS that goes on behind closed doors, and many other naysayers make very good counter-arguments too. I tend to lean toward a lot of the things that you've said, but respect what others have said that are contrary to this view too. At first you get angry, then you just shake your head. It all seems like a big game that needs to play itself out so how much can you really care about all this BS?

    The country is in a bit of a mess right now, as is the world, and I think you can pretty much blame all parties - government, banks and the people who accepted un-sustainable mortgages. I'm sure there are lots of others too, lots of blame to go around.

    The question now should be "OK, we screwed up, how can we really fix this problem in a way that is reasonable and sustainable, even if there is going to be some pain"? It almost seems like no one can handle the truth anymore. Just be straight and explain the situation and what's needed to fix things in an honest way already, all this back room BS is what makes people angry. "Oh, we can't tell them that the financial system is near collapse or be honest with them about anything else because people are stupid buffalo that will stampede and follow the others off the cliff when everyone else starts running. So we'll just maintain order by lying, but it's not lying, we just won't tell them the truth.".

    The level of corruption and blatant arrogance in flaunting it, the lack of taking responsibility for anything plus obvious self-serving tactics at the expense of others being used right out in the open is not an economic crisis, political crisis or otherwise, although it obviously seems so. It's ultimately a crisis of the conscience, or lack thereof. It's a moral crisis. If people really cared about others - anybody but themselves - and about the world at large, they wouldn't resort to the kind of trickery and greed and deception that they let rule their lives. Only by changing ourselves will we really solve these problems once and for all, long term. Money and the concept of money, monetary policy, our economic and other systems, are only as real as we allow them to be. We made them up using the collective creative forces of our minds, we can also un-make them and re-create them into anything we want. In other words, it's all fake-ass -- only as real as we allow it to be. Ultimately it's just a system for attempting to keep some form of order and society. There's nothing to say that we can't come up with a better model and start new. But it won't work with self-serving individuals leading and it won't work if coming out of the wrong intentions. I'm a capitalist, always have been, but more and more everyday I see holes in the system just as in any other system. It's missing something. It's not perfect.

    Good luck to us all, hopefully we don't all kill each other out of ignorance and confusion and fear before we realize we don't have to live like this anymore when it doesn't make sense to.

    Dave

    1. Fderfield,

      Well if I may make a suggestion... don't check the box that says, "Notify me of followup comment via e-mail." And you may want to start with the unsubscribe link that is the bottom of those email you are receiving. Sorry to be curt, but I don't like name calling.

      Have a wonderful day!

      Best,

      Lindsay Thompson
      Director of New Business Development
      INO.com & MarketClub

      1. Hey Lindsay,

        I agree with you whole heartedly but what else can you expect from a bunch that just got back from a town hall meeting. The lesson I take from all this is, how close are we to social melt-down ?

  30. In seven years I have been reading Adam's technical and market comments, it is the first time I hear him so loud and clear referring to sadly VERY TRUE FACTS!

    Most people only whisper such facts as in fear.

    Congratulations to Adam Hewison for so thoroughly screaming out the TRUTH!

    Fundamentals are and will be so serious that will affect every country in the world.
    I regret I ever bothered to study economics and the thick books of Paul Samuelson.

    GS's manipulation did taken a chunk of my cash but no more. I took it back from them thanks to Adam's technicals. I am investing against their algorithms quite successfully. GS and their computing market manipulators cannot beat the human brain.

    All the best,

    John
    OH! You're my new favorite blogger fyi

  31. Dear Adam,

    Enjoy utilizing the tools of Marketclub. Don't much care for the political commentary. Yes Obama is trying to cushion the crash with cash and debt, where were you when the Republicans were building this mountain of crap in the first place? I suspect you were like most financial entrepreneurs begging the fed not to raise rates so that the long side party could goldilocks it's way up forever. I haven't heard you say much about the Iraq war spending, gee we sure could use some of that 1000 billion we have pissed away on that fiasco now couldn't we? Kind of makes cash for clunkers seem like really really small change doesn't it? Oh, by the way, wasn't it George Bush who started all this bailout business in the first place? Don't worry, this economy of ours will fail in the end, we all know that, the debt is simply unsustainable, no doubt there will be lots of gleeful Republicans shorting it. The problem of course is as much as I enjoy using Marketclub, I have no illusions as to what contribution I am making to America. Basically we are all slyly skimming profits off of those dumb saps who faithfully buy and hold. Keep up the good work.
    Don

    1. Don,
      Your comment is full of sense allow me to say but avoids the Goldman complicity with Government plus market manipulation which is a huge issue that one day will explode and affect us all.
      John

  32. In seven years I have been reading Adam's technical and market comments, it is the first time I hear him so loud and clear referring to sadly VERY TRUE FACTS!

    Most people only whisper such facts as in fear.

    Congratulations to Adam Hewison for so thoroughly screaming out the TRUTH!

    Fundamentals are and will be so serious that will affect every country in the world.
    I regret I ever bothered to study economics and the thick books of Paul Samuelson.

    GS's manipulation did taken a chunk of my cash but no more. I took it back from them thanks to Adam's technicals. I am investing against their algorithms quite successfully. GS and their computing market manipulators cannot beat the human brain.

    All the best,

    John

  33. Right On, Adam.
    I have been telling everyone I know for a year now of what you just figured out. The government is in cahoots with these companies they are bailing out. Most of the politicians have their retirements invested in these companies and if they go belly under then they lose their retirements.
    I still say that all that bailout money should have been divided amongst the citizens. Then the funds would be circulated in the business sector of our country. That would definitely stimulate the economy and really get the ball rolling in our country again. But Noooo! Obama has to be stubborn minded and think he is a financial wizard and only he knows best! I informed him as well as Bush that their bailouts would not work. Every body knows that for a business to survive they have to have customers coming through the front door. Paying from the top down only postpones the inevitable fall.

    Oh! Yer right. I did not get my cash for traders check either.
    Jean

  34. "Un-wanted Whitehouse emails, Cash for Clunkers, Goldman", excellent synopsis Adam. It will take commentary from knowledgeable people like you to shine a light on the facts that the Whitehouse would like to keep hidden from the public.

  35. Adam, I think you are playing to the madding crowd. You know how readers here feel already and you are feeding and fueling their anxiety. America was built on the power of deception from the earliest Quaker settlers to the American soldiers recruited by current administration as well as everyday Republicans and Democrats. That's not going to change - it's the nature of the entity - and the policy makers are not stupid, irresponsible or naive (or communists!).

    In fact they are sophisticated. They use well developed and proven strategies. They are responsible and largely self-serving in the true American spirit. I don't believe the important question is - 'How can we change the administration to serve our interests?' - that is simply denying our own responsibility and the observed truth. The more important question in my mind, is; 'How should an individual use their own resources to enjoy a better life despite the forces competing for those resources?' That includes strategies to both grow your own real resources and protect the resources you control from those trying to acquire them.

    We must adapt to the reality of the environment. At some point, that may mean taking up arms for the common good and angry energy will be required. I'm not ready to go their yet and I think the administration is too intelligent to let that happen, don't you?

  36. Hi,

    Do not forget that we (traders) are parasites too. We do not produce anything usefull and live by taking (read: stealing) money from each other.

    1. I agree we traders are parasites. I was not always one. With the permanent demise of the construction industry I am involuntarily retired. I used to produce a bricks and mortar product (sometimes those McMansions you read about). The whole option business is nothing but a legalized gambling casino. But I have to make a living so here I am trying to steal some money from you with options trading. So far I am ahead.

  37. I agree with your "theory" on GS except I don't think the government initiated the idea. The idea was proposed by GS; there is not one government employee with enough knowledge to propose such a project (except ex-GS executives now working for "the government".

  38. Adam, a very good article.

    You ask "Does that make sense to you? Why would anyone, including the government spend $4,500 to buy a truck or a car that’s worth maybe $500".

    It sounds like you are still laboring over the passe idea that goverment works for you or is looking out you.

    Government works for the special interest groups in a coordinated manner against the citizen. It has always been this way since the beginning of time.

    To understand the "bailouts" all you have to look at is Obama's campaign contributors list. Number one is the big banks (1st on the banks list is GS)and number 2 is the UAW. It is only natural that the "banks" get bailed out first and then the UAW through loaning billions to their employer and then giving a $4500 discount to try and reduce their bloated inventory. It all makes perfect sense to me. All of these ideas are hatched by low level intellectuals that have never had to produce a benefit that a free person would pay money for in order to collect their own salary. If the government were working for the citizen they would ask for a committee of high level proven business executives (such as Lee Iaocca, but not unproven ones like the ex GM president)to resolve the situation. This committee must be uncompensated for their efforts.

    Where we went wrong as a nation is letting the government (federal, states and local) usurp our rights over the years. One of the single biggest power grabs was made by FDR but Obama's is 100 times larger and he did it in less than 100 days. It took FDR almost 10 years to get his "reforms" in place.

    Why would you worry about repaying the money Obama is spending; it is obvious that it can never be paid back. The natural course as proven by history is that we will eventually default and start over with a "new dollar" just like a "new GM" and like the Winmar Republic.

    We don't actually have money any more. The dollar was first repudiated under Nixon when he closed the gold window. All we have now is a federal reserve note that has no backing what so ever. Next will come a "United States Note" or something to that effect. They will issue one "new dollar" for each thousand or so "old dollars".

    Sorry for the long dissertation.

  39. Adam it's clear that you're hitting a nerve with your unfiltered commentary and your willingness to speak the truth! Having you give us the inside scoop on a daily basis (sorry just for employees) has helped me see the world and government in a different way. Keep up the great work and I'll talk to Dave about improving our spam filters...next thing you know you'll be on the Acorn and Nancy Pelosi email hate list!

    Lastly, you're on vacation so you'd better not let your wife or family catch you working this much! We're missing you here in the office.

    Cheers,
    Brad

    P.S. I'd love an authentic Maine Lobster if you can fit it in your computer bag! HA!

    1. Brad, If you are going to let your boss write blogs like this one you need to install a different message grouping software. You need to be able to colapse and expand the messages and link them to each thread. For an example take a look at the softvelocity.com website blogs. I really like this stuff but it is very hard to scroll thru all these comments and imposible to follow a thread. Let me know if you need any help in this suggestion.

      Adam sure broke the dam with this blog.

  40. Adam,
    Excellant post. Just like gravity, the properties of economics cannot be ignored. Although ruffed-up, we the people will eventually work our way out of this, despite the government intervention.

  41. Cash For Clunkers continues to do what we did to get into this mess. Let's put average Americans back in office like it was 200 years ago. We needed term limits then to get politicians back to their farms and businesses, we can have that again.

    Who is selling gold at 980? This is fishy to me, they seem to control a lot of gold.

  42. "I always believed that the problem that caused the recession was over spending and the use of credit. So here we have the government trying to bail out the country by spending even more of our money.
    Does that make sense to anybody?"
    The problem you have with your statement above is your belief that this administration is trying to do what is right and get this economy back on the road to recovery. That would be true if you didn't take into consideration that this administration is trying to fundamentally change our country into a Socialist Society. Therefore, it is my firm belief that the true purpose is to bleed our Society to the point that they can flip us into a totally Socialist Country run by them. When you look at it in this respect it makes perfect sense. They are not trying to pull us out of debt but to smother us in debt to pave the way for their take over of everything in our lives for ever. Once you understand this then everything they do makes perfect sense in light of their objectives. If you want your country back insist they obey the Constitutional Law of the land while we still have one.

  43. Martin Armstrong the former chairman of Princeton Economics and chairman for the Foundation of the Study of Cycles said it best in his documentary (Looking Behind The Curtain A Real Conspiracy). There was also an article printed by Portfolio Magazine February of this year.

    Here is a quote: "The whole Sherman anti trust act was based on this sort of activity. The theory that whole corporations could ban together to manipulate markets would be a bust unless they included members of government. The only way to succeed is by controlling political powers. Unfortunately we donot live in a real democracy, for we donot elect the treasurer,head of the federal reserve, sec, or attorney general. These positions can be bought like a cheap whore"

  44. I think gold is not going up because of deflation. Everyday necessary goods maybe going up but not your big ticket price items. For eg. computers, cars and not forgetting housing!

  45. Agree 100%. We and the next generation ( and probably the one after that) will be paying a heavy price for your Government's (and mine in the UK)blind stupidity! Talk about throwing good money after bad!???!!!
    David Steel
    Bedford, England

  46. I think that Goldman Sachs promised to pay back the government if they could play the golden rule game. Those who have the gold make the rule. It is not just stocks. What about the Forex market? How did Goldman make such a profligatory insane amount of money. When in trouble eliminate the competition. The government can always say the market decided. Hogwash!

  47. First, thanks for MarketClub.
    Absolutely, I agree with your thoughts on the economy and the way two governments have chosen to solve problems not seen before. It is evident that the interests of the business community comes first, the interests of society comes second. And there is no tradition in the US that the business community takes care of society. (Except handouts by donation).
    The idea about conspiracy cannot be farfetched, since people not professionally involved in the Stock market seem to share it. By applying the conspiracy theory to what has happended in the stock market this year it all seems logic.

  48. Martin Armstrong said it all. Also, the February edition of portfolio magazine. Goldman is not just intersested in controlling the world just the world economy!! What happened to the Sherman Anti Trust act?

    (If we lived in a real democracy we would elect the Treasurer, head of the SEC, Attorney General. Unfortunatly, these are the spoils of poltics and can be bought like a cheap hooker) Martin Armstrong

  49. Hi Adam,
    When you issued the video" is this the gold move we have been waiting for" recently I commented that the "opposite" as to what your charts were saying (up-move) would most likely happen (downmove). The goldmoves at critical levels (960) have become so predictable that there MUST be manipulation. The price of gold must not rise. One of the tools for the manipulation is shorting the goldmarket via COMEX hedged by "papergold" of GLD run bij HSBC and GOLDMAN. It is a cheap scam! As unfortunately the whole financial system of the US and the world has become. This printing of money will change the world and drive up certain assetclasses to insane levels, only affordable for the filthy rich. The ones who get bonusses and pay packages to absurd levels (as if they don't shit and smell everyday, the newly created Gods under the living).I live in southern France and see these gods acting everyday, wasting 30/40 bottles of expensive champagne , wetting eachother and all around them in 15 minutes and feel like Gods! And part of that money came from the government and the people. Next will be the loss of the ability the pay the electricity bill for the elderly since pensions will be minimal (in purchasing power). Something, a change will happen. Has to but how and when is not predictable. I put my bet on WAR!
    Keep up the good work, regards Joseph

  50. It is common knowledge that Obama is getting his back side scratched by Goldman Sachs, he's in bed with several who are now in his administration, all paybacks for stealing from the american people and lining the pockets of ACORN, Banks, insurance companies, and anyone else who put him in office or will further his socialist cause. The greatest danger to our country, and the american people put him there. No wonder they are so arrogant. They cant even figure out that the people don't want the crap he's peddling, even when it is right in front of his face, he has to fabricate support or buy it. Goldman is running the plunge protection team, it is obvious to anyone trading. How else can we have such a huge rally with Obamas massive job losses and business failures. Who ever thought the US would be selling cars, insuring derivitives, owning the banking, and running the printing presses 24 Hours a day to keep spending more in efforts to kill america. Are we an organized mob, not yet. I look forward to the organization coming, it'll throw out all of the Socialist good-for-nothings.

  51. “I’m as mad as hell and I’m not going to take it anymore”.
    What tripe - so what are you going to do with that comment - have a Tea Party or disrupt a civil discussion of what a mess we are in?

    Give some reasonable actions a reasonable person would take - don't just act all upset and throw in a bunch of rhetoric - your readers who are thoughtful (any?) might want to hear about rational actions to take - not Tea parties, or signs of Obama with a hitler mustache. I don't think you said much of anything except to blame the unions. I don't think the unions made the decisions to make Hummers as a consumer vehicle or Escalades and their dependence on trucks and gas guzzlers as corporate policy. The union memebers make cars, not decisions as to corporate strategy - you don't stand on an assembly line and say "I'll make this GMC into a Honda FIT". As far as the bond holders and other investors are concerned, many said "get out of GM" long before they went TU. Sorry, that's investing in this day and age. Keep an eye on your investments - check it out regularly and re-invest as needed. Back in 1969 my dad said "never invest in Detroit or Boeing" - he was no trader, just had been burnt by his union's investments.
    Oh, yeah, you probably didn't have a problem with our burning up billions to take down that evil Sadddam - that worked out well . $2 trillion doesn't matter to get rid of W's daddies nemesis and to boost Haliburton and and Cheney's cronies - but if it might save a few thousand american families - must be bad because of those socialists and lily livered liberals. Get real. Get your thumb out of your....

    1. Dickie, you hit the nail on the head, everyone wants to run of at the mouth about what a bad job the administration is doing but no one I've heard has brought forth any reasonable suggestions to fix the problems we have. I'd bet my last dollar that everyone of those raising their voices high right now would really be screaming had the actions not been taken & we fell into a worse depression than was experienced in 29. I would venture a guess that a lot of those loud voices would be jumping from buildings because they have no idea of how to cope with the loss of job, home, bank & brokerage accounts. On the other hand I do believe that GS has been given an extreme advantage and favoritism in these economic times.

      1. dicke and john l, you two are so far in LEFT field it makes my bones ache.

        Here's the solution. Cut taxes, cut government programs, cut spending, cut freebies, and break this noxious epidemic of entitlement that so many Americans harbor; which, by the way, is exactly what Adam was talking about when he said that every American was "owed" a half million dollar home. I'm sorry, but school bus drivers shouldn't ever have been allowed to buy an $800,000 home in West Los Angeles.

        It's funny, "the administration" gives an $8,000 tax credit to first time home buyers and suddenly we see some recovery in the housing market. Hmmmm, cut taxes - get recovery; it's right under their noses, but they're too busy burning money to smell it!

        No, the administration is not doing a good job, a nominal job, or even a lousy job. The only job they're doing is trying to get rich and re-elected, as clearly evidenced by the dramatic change in (empty) rhetoric in relation to the health care bill (debacle). That's all every administration has done since I was old enough to care

  52. Adam, while your rant, seemingly inspired by the beuaty and peacefulness of Maine, makes amusing reading (sort of like listening to screech radio provides the kind of entertainment one gets at the monkey enclosure at the zoo), its simplistic analysis, throw away lines and idealogical rigidity/extremism does nothing to enlighten or explain.

    Fortunately, your trading system relies on facts and hard information to generate very useful information.

    Great work on the trading system, not so great on the macro economics/politics--don't give up your day job and move to Maqine!!!

  53. Geez, cut all the whining out. Imagine what would have happened to the auto industry if GM had failed. Think of all the lost jobs, bankruptcies, foreclosures, etc. If Obama had allowed that to occur the long term cost to America would have been even greater. We got off cheap compared to what could have happened. We all know Wall St. manipulates financial markets, tell me something I don't know. What's happening now is the "natural order of things" its just more transparent now with instant communications over the web.

    The mortgage crisis was obvious to all, if you didn't sell your house at the top you have no one to blame but yourself. You knew no one could afford it with high paying jobs being outsourced to every backwater country on the planet. But since you failed to recognize the housing bubble and profit from it. Let me guide you, the housing market is down for the count and it'll be a very long time before it comes back. Ever heard of oversold condition combined with a margin call. Lots of stock/houses, cars are available,etc, but the U. S. consumer is under a huge margin call and they can't pick up the bargains.

    1. Larry, another right on the head opinion. My personal opinion, for what it's worth, is that the housing issue is what started this whole fiasco. The government, (before Obama)& the fact that Bush didn't have a clue, among other major problems allowed the use of ARM's to get people to buy homes they couldn't afford, mortgage companies using ARMs to suck people into mortgages they eventually weren't going to be able to pay, INVESTORS bidding up the price of homes in booming areas, then when it all started to collapse they walked away, starting a landslide of foreclosures, falling prices, more foreclosures, more falling prices, resulting in construction workers being laid off, resulting in falling car sales, resulting in layoffs, resulting in general sales falling resulting in more layoffs, & on & on & on. UNTIL SOMEONE FIXES THE HOUSING PROBLEMS THE ECONOMY WILL NOT FULLY RECOVER. The two most important basic drivers to the economy are the housing industry & the auto industry, the two highest priced items MOST people will ever buy. When either one of those industies falls off the other follows closely behind & if thAT last any length of time at all the rest of the economy isn't very far behind.

      1. John and Larry you are both wrong. Your solution is trying to treat the symptoms and not the disease. You are correct about the housing industry; the government should not have gotten involved in "pumping" the housing market in 1946, but you are not going to cure a 64 year old disease by treating the symptoms. The free market always wins; just look at Cuba. GM should have gone bankrupt 15 years ago. Some enterprising group would jump in and buy the assets and produce a profit making product. The government has never produced employment except for non-producing bureaucrats. Anytime you have government interference the super rich and the incompetents (bankers, politicians and ACORN) get richer for awhile until the average working person wakes up to what is happening and decides to do something else besides paying 50% of income as taxes (most socialist Europeans). This is why our founding fathers created a republic rather than a democracy. With FDR we turned it back into a democracy. As history has repeatedly shown the next stage of evolution of the "American" society is (sadly) Socialism. Again using history we see that Socialism leads to Autocracy then revolution and then chaos and finally back to "individualism" (a republic) with perhaps a dictator or two thrown in around the Autocracy period. As with any government run business they drive out the private business with subsidized products, protectionist laws, and taxes. Without some entrepreural spirit any company is doomed to failure (the Peter Principal). Yes this is a simplistic one liner dissertation of the current situation.

  54. I've been feeling the same thing about gold, which is why i never bought into it. I know they will be taking it soon (at discounted prices of course!). According to the law, all gold (except for pre-ban gold) ultimately belongs to the government if they so choose. If you read the Bible, Satan was telling the truth about all the kingdoms of the world have been given unto him (until the end of course), which means that he ultimately controls every system through chaos and anarchy. We all know Jefferson's famous saying: "When the people fear the government, there is tyranny. When the government fears the people, there is liberty." So true. Our government treats its people as criminals and "mobsters", stifling their protests for liberty with lies and deceit.

  55. The US government will do everything in its power to keep gold suppressed. Imagine the media hyping up $1100 gold. Can you say PANIC! The general public will hoard all their money because they will be hypnotized that an inflation tsunami is on the way. So much for the recovery. Do you honestly think the Obama administration will put up with this.

    Gold is just tradable garbage. Its fun to trade but if it can't break clearly above $1000 with the US$ being pummeled into the ground I don't know what it will take to do it. I think its more fun to trade gold on the short side because money gets made quicker. There's nothing better than when traders are dumping gold at any cost because they are panic selling.

    To sum it up, I think there are higher powers than us manipulating gold.

    Cheers,
    Dan

  56. I have a feeling that the American people have lost their courage and faith in themselves. Pardon my open expression of my disappointment about Americans who were once upon a time great people (yes, once upon a time, not now. What other alternative I have except to doubt their courage when they allow some Tom Dick and Harry who sit in that 'Privately-owned company called "Federal Bank" cuts ordinary paper into the size of dollar bills and print some fancy pictures and pass it on in truck load to their 'collegues-in-conspirecy of big corporations and then, shamelessly, ask the Americans to pay through their hard work day in day out for that piece of tissue-sized paper which they call "money"?

    I was all-appreciative of Americans but now I am all-curious about them, wondering 'what are these that call themselves 'Americans"?
    Hu!

  57. It is close to impossible for the US government to confiscate gold or prevent the hoarding of it. Not because they can't, but because of the implication to the millions of US$ holders - outside of America.

    Think about it - all those trillions of US dollars abroad held by foreign investors and governments. Once they catch wind of gold confiscation in the US they would immediately think that something is terribly wrong with the currency, gold will most assuredly burst above $1,000 hence defeating what the cartel were trying to do.

    As a matter of fact, gold confiscation would be extremely bullish for the yellow metal. It would cause POG to shoot to the next galaxy - even more so, Silver.

    Our government have painted themselves into a darn tight corner, the market always wins.

  58. So many bloggers I read feel exactly the way you do. There is such a push to increase the debt load of every citizen of the U.S. even if there has to be give aways of our tax dollars to "help" them take the plunge. Loan modifications to extend the length of the mortgage, and make recourse loans so they poor soles can never get away from this debt for which they were never able to pay back in the first place.

  59. it is a shame that americans are so illerterate that they cant see the hand writeing on the wall. there was one president that thought he had the power and run this country, you know where he is at because he didnt follow those that control every thing in this country, Obama is nothing more than a puppet moveing with each pull of his strings. if he doesnt do what he is told, he will not be there long.

  60. I think that Goldman Sachs was asked to juice up the market so that the big banks could rake in larger amounts of sucker money during the rally in financial stocks in order to recapitalize.

  61. The clamour against this wholesale financial meltdown grows louder. It all started with the Devil's spawn, ACORN, and those who created that beast with the plan to remove all sanity, all sound practices in mortgage lending, which resulted in turning over huge assets (the housing market) to the kind of people who utterly lack the gene that controls money managent. Someone please ask those idiots in the White House, now that the damage is done, please give the American people the choice: " Do you want to be poor. Or, do you want to be in debt."

    It's a fork in the road, folks...

  62. our captivating oligarchy has decieded whats best for us (NOT !)

    i dont trust bankers, congress, obama, bush or any other con artist. its only a matter of time before a revolution surfaces and all hell breaks loose. but i am hoping its sooner rather than later people are mad as hell and we have no voice.

  63. Adam, recently you ran a video, I think, where you said, "the triangles were right but I was wrong." It seems to me that you and many others are letting your political views direct your trading and not your technical analysis. Gold may be the best long term trade in history but right now nothing is long term according to the technicals. Economically or politically we have never been here before and hopefully we never will again. Long term, big move, predictions require a historical base. We do not have that base. We are in a trading range that may or may not end for years. If we follow the fundamental rules of technical analysis and money management we will not be hurt, too bad, when the market changes. We cannot allow our beliefs, political or otherwise, to direct our trading.

  64. real problems need real solutions. newt gingrich one of the only leaders with ideas/determination to make a difference. we are in for a long, painful series of changes if we are to survive as the america we cherish. what to do as an individual investor going forward is a mega challenge. hank

  65. i couldnt agree with you more adam.. but on another note the american public...those that took out second mortgages to finance second homes which they could not afford or to add a third bath should of been more responsible and had more financial education.THATS WHAT LACKS IN AMERICA TODAY. People assume that the government should take care of them even when they know they're in the wrong. I was at work and heard two buisness men watch CNBC when Obama announced the record stimulus. One said to the other " Oh boy, we're turning into a Third World Country now." Now I understand what he meant.
    Marc Faber states your feelings exactly Adam... if we are a Capitalist nation.. then let the strongest survive... What do you think of Marc Faber.. Dr. Doom Adam? have a happy vacation..

  66. Dear Adam,
    You have fallen under the spell of the GOLD BUG HYPERBULLS and the Goldman/Fed conspiracy theorists. What have you been smoking up there in Maine? Whatever it is, stop now!

    Repeat after me:

    MARKETS ARE OFTEN NOT RATIONAL!!! CURRENTLY THEY ARE DELUSIONAL!!

    OWNING GOLD OR USING IT AS CURRENCY WILL NOT SAVE THE WORLD, OR CURE CANCER,BALDNESS, OR UNCONTROLABLE FLATULENCE!

    OUR GOVERNMENT IS FILLED WITH FOOLS JUST LIKE US SO THEY WILL DO STUPID THINGS JUST LIKE US!

    GOLDMAN AND THE FED ARE NOT GODS!! THEY ARE NOT CONTROLLING THE ECONOMIC UNIVERSE IN A VAST CONSPIRACY TO WIPE OUT OUR 401K'S!!!

    1. @John C - thank you for going against the tide here and standing up for a balanced perspective. It is very easy to join in the ranting and try to find someone - anyone - to blame. I am afraid that the joy of a rant interferes with our otherwise normal processes of analysis. Adam, you said: "Why else would the stock market that has the worst fundamentals since the great depression rally some 40 plus percent in just a few months?" How about: because the plunge to March 9 was a panic selling process, based on fear of a melt-down. Once GOVERNMENTS around the world showed they would not allow a melt-down (which STANDING ASIDE would have created)the selling stopped and the buying began.

      And also, GDP of -5% still means 95% is still happening. Look at AAPL etc. for "reasons to buy".

      Noone can seriously believe that the markets for gold, all stocks, and other commodities are simultaneously manipulated to achieve particular prices. For God's sake, they can't even manage ONE market (value of the USD/JPY)against strong market forces.

  67. Adam,

    Your common sense is a breath of fresh air. There is something behind this rally other than investors looking for bargains. There are so many skeletons in the closet that people don't even want to know about them.

    As Alfred E. Nueman would say, "What, me worry?"

  68. Adam you speak the truth. What really worries me is my children's futures. Why should they have to suffer from others inane ideas and policies. Jay

  69. hello sir its nkjain , i want to ask u about gold and silver all over the world peoples r highly bullish on gold and silver taking about 1300-1500 and 20-25 or even higher in silver but as per my view on every higher level its facing sellers and coming down gold has tried to break 1000 levels nearly 3-4 times but unsusccesfull so plz guide me what decision we can take in gold and silver at present juncture and wats u r outlook on silver

  70. Only makes sense. Consumer not only tapped out but months in arrears, be it for mortgage/2nd mortgage/line of credit/car loans &/or lease loans plus misc. loans/credit cards/etc---ENSURES NO SPENDING. How many months &/or years required just to catch up?????? We have not even touched on commercial loans going south/the states/the cities/the counties/etc. Could be like Japan--1989 market at 40,000 NOW ranging around 10,000.--NEARLY 20 YEARS have passed. Like my Dad used to say, If you are trying to get out of a hole, maybe you should STOP DIGGING.---- GOOD LUCK!!!!!!!!! One hell of a mess.

  71. This administration has failure written all over it.
    they can only send emails, toss out dollars to any and everybody for only so long. Americans are fickle and when they have had enough, well axelrod will be out of a job. good riddance.

  72. What this adminitration is doing to the United States of America brings a tear to my eye. I cannot understand why people are not more outraged at what is going on. There truly was a mistake made last November, a mistake that may change America forever. The world seems to be upside down and backwards, whats wrong is right and whats down is up. It's all very sad.

  73. When the Cash for Clunkers program was in the early stage of developement my Congressman conducted a survey via telephone while having a "Town Hall Meeting" via teleconference. Near the end of the teleconference he expressed his surprise that the results showed that the voters in our district were overwhelmingly against such a give away...these politicians just don't "get it"...the average Joe has a better understanding of what is good for the economy and our country than they do!!

    1. I'm with you all the way. I fully believe that the S&P will challenge this leg up - and I believe that before it's over with, we'll see a hit of 600, 445 and possibly 220. GULP! Those are the technicals that are 90% accurate in my trading business. What would it take to see 220? Threat of global thermo nuclear, a strong event between Israel and Iran, North Korea nuke on Soeul South Korea, or another strong 9/11 event in the U.S. Dollar collapse could send markets higher - but only to trade higher (taxable) earnings in for worthless U.S. dollar toilet paper.

      Gotta build a plan to beat these monsters at their own game and that starts with knowing where they're going and what their intentions are.

      Daniel

  74. Hello. I enjoy your blog.

    You say you are mad as hell and you are not going to take it anymore.

    Wrong, you will take this and a lot more also.

    The reason being is that the US electorate is mostly communist. In America the majority rules. The majority in America is communist.

    Obama's constituency consists of unwed mothers, teeny boppers, welfare queens, criminals, banksters, feminists, illegal aliens, various kinds of parasites, control freaks and swarms of lawyers and their ilk. In other words: Communists.

    So what will you take? Just take a look at Cambodia and see what they took. Just look at the Soviet Union under Stalin and see what they took. Just look a China under their communist rulers and see what the Chinese people took.

    Yes, oh yes, you are going to take a lot more before it's over.

    In this process you may come to appreciate why the founders of the USA did not allow *************************** to vote.

    Unfortunately that appreciation will come to late for you.

    Me? I've got a plan to save my butt. May not work. But it is all I've got.

  75. I think that there is a lot of truth to what you have said. A lot of it boils down to greed and power. Thanks for posting your thought I sure agree with you. Tim

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