Market Bottoms & Economic Lifeblood

Monday, March 9th, 2009
2155 hrs

In mathematics, maxima and minima, known collectively as extrema,
are the largest value (maximum) or smallest value (minimum), that
a function takes in a point either within a given neighbourhood
(local extremum) or on the function domain in its entirety (global
extremum).

I copied the above definition from Wikipedia to remind you that
the favorite questions/articles/opinions these days in financial
media happens to be "Where is the bottom?". The truth is that
NOBODY knows from which price the markets might rally again and
for how long that rally might sustain itself. Whether we trade
bonds or stocks or options or any of the vanilla flavored financial
instruments, technically the bottom is at ZERO. All one can do
when trading is to be extremely self serving and trade in such a
way that the probability of gains are in one's favor.

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Here's a very very interesting link to those of you that watch
CNBC and listen diligently to the talking heads :

http://www.youtube.com/watch?v=yJObWmN-x9I#

Funny!? Indeed and I hope your opinion has now changed!

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Forget U shaped recoveries and/or L shaped recoveries and the
like. This administration is now following the failed Japanese
model - bailing out everybody in sight. Every decent american
taxpayer should be angry at the way they're being robbed. The
money is going as bailouts to banks, who are then giving it
out the back door to funds etc., Bailouts will never work.
Japanese markets are down by slightly over 80% from where
they were 19 years ago!! Since "Depressions" are not
economically defined, I'd bet that we are probably at the
threshold of one.

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Congress, the talking heads on TV and others in the media
believe that we need to get the credit cycle running again.
Hah! They state that Credit is the lifeblood of the economy.
Hah!

PEOPLE!!! THE LIFEBLOOD OF AN ECONOMY LIES
PRODUCTIVITY. IT HAS NOT, DOES NOT, AND WILL
NEVER LIE IN CREDIT (ie., DEBT) IF IT IS NOT BACKED
BY REAL INVESTMENT & THUS SAVINGS.

The idiots in Washington DC are once again asleep at the wheel.
We need to fire the Fed and the Treasury and appoint people
that are not afraid to feed the financial system bitter
medicine. And a part of that bitter medicine is to simply
force truth out ie., lock up/fire people that have lied along
the chain in our economy and/or who have abetted all this
to happen. Starting with some at AIG...which is pure
outright insurance fraud.