Does anybody remember about this time last year and the mantra of a soft landing, the HB’s were rallying, and we could expect about 3% in prices gains (in California). Wasn’t Cramer apart of that crowd last year. Don’t get me wrong that video was an excellent assessment of California. Why such the change of tune?? I think I know the reason why. Wall Street is lobbying for a massive massive bailout. I was watching one of the panel discussions on CNBC the other day and they laid three scenarios addressing the credit crisis. 1) Do nothing, 2) the current state of limited surgical moves by the FED i.e cutting FED Funds rate, opening discount window, liquidity injections and 3)……..drum role please……….The WHOLE ENCHILADA i.e Government taking back all the bad loans along with rate freezes etc etc etc. Thats why you are hearing Great Depression references not from pesky bears on blogs and chat boards but from the Chief Economist of Goldman Sachs, the CEO of Wells Fargo and of course Bill Gross of Pimco. They are publicly playing the referee for a massive bailout. The President followed Arnolds lead with announcing a rate freeze this morning. As I write this a major short squeeze is on in HB’s and Financials.
I’m not buying it. I have never seen so much fear in the body language emanating off the screen even during up days at rah rah land CNBC. I always liked watching and listening to Ron Insana, he was the cool head during the Nasdaq Pop. I was very surprised to see him take the “whole enchilada” stance. Kudlow looks schizophrenic explaining that the Goldilocks porridge will be just fine as soon as we extract this radio active toxic waste. Now we have Cramer taking the “let me tell you how bad this actually is” meme. I know that 99% of posters look foolish at some point in time on this board when they comment on the stock market, but I don’t care, I’m not buying this year end market rally….it’s a bunch of BS. Wall Street is lobbying for a government sponsored bail out not seen since…..you got it……The Great Depression. Don’t look at the headlines, look at the fear in these people and the source of what is motivating them to take this stance. Insiders obviously see something very very bad. We are way past any point of propping up this bubble, when bubbles pop thats it, this will be nothing more than a major mop up exercise that is looking more and more like Japan circa 1990’s everyday. I am no expert but I do have common sense and that is what my gut is telling me. It’s the same feeling I had in my gut in 2004 looking at the RE market. Just my two cents.
