Stock Market December 2011

[MetalMeister]

No New Shorts In Early November As NYSE Short Interest Drops To 3 Month Low

Going higher?

http://www.zerohedge.com/news/no-new-shorts-early-november-nyse-short-interest-drops-3-month-low

[Beginner]

Was surprised to come across an optimist about 2012.  Anyone have any idea who this commentator is and why he goes against all the other pundits?

http://us.mg4.mail.yahoo.com/neo/launch?.rand=2594n4bolds9v

[Beginner]

Sorry about the URL.  Here is the correct one:
http://www.wealthdaily.com/?r=1

[sidewinder]

Was surprised to come across an optimist about 2012.  Anyone have any idea who this commentator is and why he goes against all the other pundits?
    http://www.wealthdaily.com/?r=1

The guy may be right as far as making a new high.  I expect it to flirt with that but not for the reasons he cites.  I think it will be a result of two things ….. failure in Europe and flight to the US equities then a further loss in value in the USD would cause the market price to go up.
As far as his eight reasons go eh…..  Time heals all wounds.  Not so sure about that my dad died still hating Japanese. 

2. Don’t like his source.

3. ditto

4.  As far as job growth improving anything is from the big 0 we’ve become used to.

5.  Housing market won’t bottom for some time.  Yea there will be bright spots here and there but until all the excess inventory is gone and all accounts settled, this one is stuck in limbo

6. Consumers never went anywhere to begin with they just ran out of money.  Most Americans are just stupid in this consumerism thing.  The pain has not been great enough, long enough for the current crop of consumers to break the habit.   …… YET

7.  Banks have been flush on cash for several years and they continue to sit on it.   Again the chart ….. Can’t tell where the loans were deployed he was talking about.  Don’t know why he even mentioned it frankly.

8.  Stocks cheap eh.   Well, that all depends on what you sell it for, if you get my drift.
Having had a go at his reasons.     I agree that it will likely make a new high sometimes next year but for very different reasons.  S&P at 1,500 in 2012 will be an entirely different animal that the S&P and 1490 5 years ago. 

[sunseeker]

SW and Beginner.
Good to have you both posting/commenting. 

3. The economy is expanding.

Who's feeling the benifit?

ATB 

[Beginner]

About Steve Christ of Wealth Daily and his predictions for 2012.    http://www.wealthdaily.com/?r=1

Thanks Sidewinder, for your very thoughtful comments.  Also Sunseeker.

Steve Christ has to be following insider information.  The market has been climbing because of manipulation -- QE1, QE2 and possibly soon-to-be QE3.  That upward market trend without much volume may be what is in store in the coming year.  The US is still be the world’s number one economy which is why it can ride out all the worldwide economic and financial storms and still remain world leader (the world leader largely responsible for the world economic and financial crisis).

The dollar is the world’s reserve currency.  That also makes it difficult for countries to abandon the dollar.  There is no real alternative to the dollar.  As someone has observed, everything is happening in slow motion.  It seems to be in everyone’s interest to believe in and support a dollar that is already bankrupt.  It is also in my own personal interest.  I just don’t look forward to seeing my pension evaporate into thin air.

A Jack Daniels toast to a (so-far) unquenchable dollar is therefore in order.

Yet I still maintain that the dollar is in a state of decline as a policy move to inflate away US debt.  And I also still maintain that war is the classic diversion in a time of economic meltdown.  So stand by for blasting.  Iran, such a naughty child, deserves a good spanking.  Although China did say they would intervene on the side of Iran in case of hostilities.  So there is jockeying for position in what could become a world fray.

Let’s hope and pray the dollar and my pension do not collapse and that a war over Iran is precluded.

[sunseeker]

Soros: World Financial System on Brink of Collapse (Well I am shocked !!!)

http://www.moneynews.com/StreetTalk/soros-economy-euro-crisis/2011/12/01/id/419719

Emerging markets in Africa and in the Arab world, however, serve as bright spots in an otherwise dim global economy.

Today I was talking to a young Chinese National studying at university here in England. I take every opportunity to engage in conversation with people I spot who look like they might give me that little extra insight.............
From the conversation I gleaned that his parents (living in China)  have their investments in a mix of Silver (quite interested), Gold (some interest), postage stamps (primary interest), paintings (primary interest), and Emeralds ( primary interest. His mother). He's young so he couldn't expand fully on the thinking behind his parents rational.

Also.........
He also told me that his parents didn't think that there was much money to be made out of running/starting a business inside China.

ATB 

[sunseeker]

More from Kyle Bass...

http://www.robertsinn.com/2011/12/01/bass-ecb-will-print-post-default/

“we have all been programmed to think that we will always be saved from default in a post-Lehman world……EU members know that they will be required to print money in order to re-capitalize their systems.

ATB  

About Steve Christ of Wealth Daily and his predictions for 2012.    http://www.wealthdaily.com/?r=1


A Jack Daniels toast to a (so-far) unquenchable dollar is therefore in order.


Let’s hope and pray the dollar and my pension do not collapse and that a war over Iran is precluded.

Amen.

[sunseeker]

The market has risen between the end of November and the end of December five out of the last six years. 

                                               

ATB 

[MetalMeister]

Get ready for the ride of your lives!

http://www.zerohedge.com/news/david-rosenberg-discusses-market-bob-farrell-sees-europes-liquidity-crisis-becoming-solvency-q1

What signs are out there pointing in the direction of a possible Greek exit? How about the fact that 40 billion euros of deposits have fled the country's banking system in just the past year. This is equal to 17% of GDP! More than 30% of that outflow took place in September and October alone. This remains a powder keg situation and what is clear to us is that the Euro area is not at all close to resolving its problem of excessive debts, insufficient growth and competitiveness (Germany aside), glaring country-by-country current account- savings imbalances and an ever-growing lack of confidence. As we saw with Lehman, once entities reliant on wholesale capital markets for their funding lose confidence among the investment community, a liquidity crisis can morph into a solvency crisis and do so very quickly. This all promises to come to a head sometime in the first quarter of the new year, in my opinion.

[MetalMeister]

Well, not directly, of course, but just lending a "helping hand" to some European bank(s)...

http://www.zerohedge.com/news/did-fed-quietly-bail-out-bank-tuesday

[sunseeker]

Well, not directly, of course, but just lending a "helping hand" to some European bank(s)...

http://www.zerohedge.com/news/did-fed-quietly-bail-out-bank-tuesday

Bottom line. Who will reap the benefit?
An ordinary hard working person?
Small businesses (a group who would stimulate the economy more than any other given an even playing field)?
Potential entrepreneurs and innovators?
Or any other deserving section of society for that matter.
Or even the country where the recipient bank operates.

NO

The people who will benefit are the same people who caused the financial crisis and the only ones  who so far to have profited from it.

The Goldman Saching of Europe..
http://www.abc.net.au/unleashed/3718160.html


http://rt.com/programs/keiser-report/episode-220-max-keiser/comments/page-2/



Max Keiser (for the unintiated)...

Ex stockbroker and market trading software developer

In the September 2004 issue of The Ecologist magazine, Keiser correctly predicted the 2008 collapse of Fannie Mae and Freddie Mac when he wrote, "My guess is that the two stocks that look the likeliest to implode at the hands of derivative-wielding Wall Street financial types (and other fundamentalists) preying on a US economy made weak by cheap money are Fannie Mae and Freddie Mac."

In 2006 he correctly predicted that sub-prime mortgage-backed securities would be the cause of recession by 2008

In 2007 he correctly predicted the break-down of Iceland's economy in 2008.

In October 2011, during the Keiser Report, Keiser re-stated his previous prediction that Germany would return to the Deutsche Mark. In episode 192 (E192), he stated that he assisted in substantiating that prediction for posting on this page.

On December 10, 2011 he predicted that 2012 a sovereign Nation will offer a gold-backed currency. **


http://theeconomiccollapseblog.com/archives/say-what-30-ben-bernanke-quotes-that-are-so-stupid-that-you-wont-know-whether-to-laugh-or-cry

Who would you rather believe?

** Which ever country comes implements that successfully (without becoming another Libya) will witness an incredible demand for it's currency.

ATB  

PS

Hi MM

For the record.

Sunseekers don't need bailing out.

http://www.sunseekerme.com/craftsmanship/quality.php

"Rest assured that the same quality standards apply to all the usually unseen areas and components of a Sunseeker, from bilge pump to fuse box."   

ATB 

[MetalMeister]

Man, I got you ranting!   

Good times are ahead to buy PMs IMHO:

http://news.yahoo.com/eurozone-push-crisis-steps-fitch-doubts-outcome-162724150.html

My guess is the markets head South for the remainder of this year and Q1 2012.

This latest news in right in line with the article you posted from the 7th.

We are about to enter the very ugly year of 2012.

 

[sidewinder]

What?  No Santa Clause Rally!!!!     

[MetalMeister]

Ho!, Ho!, Ho!

All the banks are HOs!!!!!!!!!!

There ya go...