Quote:
Originally Posted by macker
Calling the recovery a sham is like saying every team in the NHL sucks. Pick the leaders as they will lead the recovery....
|
The recovery is a sham. The first few links I posted show the US government inflated the earnings of the banks in Q1 through tax payer funded AIG CDS settlements way above market value.
When it tanks again, attendance and profits at even the best teams will suffer. Same thing goes for your favourite *Market Leaders*
http://www.usatoday.com/sports/baseball/2009-04-29-mlb-attendance_N.htm
People talk about more liquidity being pumped into the system. It isn't enough, most major banks right now are INSOLVENT. Even the phony stress tests showed this. Banks receiving money are hanging on to it. Even more telling, there aren't enough qualified borrowers available to lend to.
Latest employment data in the US was yet again revised downward to 637,000 lost in April.
Here's some more current links:
Five reasons why the rally could fizzle (
Marketwatch)
GM sends termination notices to 1,100 dealers (
Bloomberg,
AP)
Europe economy contracts the most since 1995, at 2.5% (
Bloomberg)
The retrospective massaging of economic data by the Government (
Financial Armageddon)
The upcoming 81% tax increase (
Forbes)