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Showing posts with label stock market. Show all posts
Showing posts with label stock market. Show all posts

Saturday, June 19, 2021

Without Another Stimulus Package the Little Guy Isn't Spending Any More Money

Without Another Stimulus Package the Little Guy Isn't Spending Any More Money

It used to be,  you raise taxes, or even secretly make up new taxes, mostly done by democrats, and we'd think, "SOME DAY WE'LL HAVE TO PAY THIS BILL". The federal reserve will make the government print more money for them, and we'd say "SOME DAY WE'LL HAVE TO PAY THIS BILL". 

Well, not anymore. It's a perfect storm. We have the great reset, an immediate jacking up the taxes and new taxes upon taxes, and half the country isn't working, and they're spending unemployment checks like drunken sailors. The small business market is imploding from lack of employees and big business is imploding from lack of customers, because no one has any money. That great reset didn't  quite work out how they thought it would, put people on the government payroll and they'll love us and accept less in life.

But hold on, they forgot, we have a republic, not a kingdom. Each state, is basically a country all to its own. Everyone seems to forget this. So, when the federal government says, pay the people money, from taxpayers. The state is perfectly ready, willing and able to say no. In fact, not only can they say no, no more  unemployment, because the state is actually paying, not the federal government, they can say, you either work, and make your own money, and businesses better open up, or else. And, there's nothing the federal government can really do.

When you are the one footing the bill, you make the rules. That's pretty much what ever dad says, right? I think this is why there's such hostility against dads. But, that's a whole other video, isn't it.

When we had the typical federal government, with wall street, thinking, we can milk that cheap labor, so let's get as many "undocumented workers in here as normal", but what they forgot was, there was a whole great reset going on, so no one was working, and the low skilled workers weren't working either. So boom, we have a border crisis.

The white house was caught with its pants down, because there's no demand for low pay workers, because no one is working. HOWEVER, also, the typical wall street squeeze of raising prices, when the little man is getting "free" money, also started kicking in and that's where it finally hit. The states said, no more unemployment. So no, there was no "free" money. Also, the states that were still giving out the free money, were also the states that were in the midst of the great reset and no one could come out in public, freely, and spend their money.

So the choice for wall street was, raise the prices in places that didn't have free money, or raise the prices in places where they couldn't spend the free money.

I'm not one to say the sky is falling, the sky is falling, but they all shot themselves in the foot. But here's the kicker. The little guy, in BOTH places, said that's it, no more, we're cutting you off. No more drinking up the little guy's money willy nilly.

In wood and computer graphics card, we've reached the peak. Prices are starting to fall. The white house tried to launch a shaming campaign to get the little guy to keep spending, for wall street, but it can't work, when the little guy doesn't have money.

People are also retiring early. So there's another 40% reduction in the economy. People who would have been happy to get going 10 more years, are calling it quits right now. Instead of going bankrupt or losing their business, they're packing up and retiring. It saves their credit score so they can still buy a house or a car and get decent rates on car loans and home loans.

And speaking of home loans, the other shoe to drop, is about to happen. We can have 800% price jump in wood, and not see it in home prices. Well, again, the little guy is saying no, no more. While other people are talking about a housing crash, what they're failing to educate you on is that, it's not a crash of the home prices or home loans, it's the little guy saying, I am not going to spend $500,000 on a home that yesterday was $100,000.

But wait, that's not all. Banks are saying no we're not extending credit to most people, because we know most people aren't working. So credit AKA home loans are being denied. Surely you can't have skyrocketing home prices if banks say no, we're not lending. That means, we're in the middle of a housing crash, it's just invisible right now. When it reaches something like 40% of people no longer paying $500,000 for a $100,000 house, that's the day this stops and wall street has to stop.

You got good credit? That's just you. You're lucky. People are scrambling for credit and loans. Several new companies launched with the gimmick of no credit check, no hard pull on your credit. If credit was easy to come by, do you think such companies would exist? No. There'd be no need for this. You think the white house would be saying, we need to cancel the credit rating system? It's all a thing to get the little guy credit, so he can keep buying.

I'm no fool. I know 90% of the people that get credit, aren't going to use it wisely. All the studies show it. Banks know it. Banks are saying no.

You want to hear some proof? Something like 40% of all americans, including those with a 700 credit score, are getting payday loans. You would think, with a 700 credit score the little guy doesn't need a pay day loan, but you'd be wrong. Don't bother checking google for that. Google won't share it with you.

For those of you that think, why would you need a loan, because you don't use money like that, for a person a bit more sophisticated than the average joe, money is a tool, not an end. So, an emergency loan, which is another name for payday loan, is useful to them. When banks so no, the people have to go somewhere else to get money.

We're in a bad bad situation folks. We have all these spokes in the wagon wheel pointing at us. When you think you have a handle on one problem, 20 other problems show up and say, if you fix that, you'll got 20 other more problems.

People aren't just packing up and moving back home with dad and mom, because dad and mom don't have it either. They've accepted at 50% cut in their retirement. They're eating tuna sandwiches just like you.

Hey the good news is, there's TONS of job openings. But, be warned, the company you go work for, might actually be about to shut down, permanently. Did you know Google has that as one of the categories on business listings? Closed Permanently. It's so normal, that when i was looking for something, it kept popping up, by accident, and then showing Now Open until 6pm or whatever.

So sure, you can go get a job, but in your interview, you should directly ask, how long are you all going to be in business?

Unfortunately, some companies don't know they're about to go out of business. The distributers can go out of business and boom all the companies that rely on them are done for. Imagine 5 distributers go out of business. Then the companies have no options.

We started out fantastic in 2018 and 2019, but now we're here. And My message is, no one is winning. They thought they were going to win, but, sorry charlie, your greed didn't work out this time.

I got all the international reports, all the wall street reports.

Tuesday, June 24, 2014

Wall Street Flat After a Six Day Bullish Streak

Wall Street Flat After a Six Day Bullish Streak

(Reuters) - The S&P was coming off its longest streak of advances since mid-April, and both it and the Dow had closed at records on Friday. While Wall Street's uptrend is still viewed as intact, investors are looking for catalysts to deliver more robust gains, and recent economic data has been mixed.

U.S. stocks ended a quiet session on Monday essentially unchanged as investors found few reasons to keep buying following a six-day rally in the S&P 500, though merger activity lifted energy shares.

"Right now we're digesting last week's gains and keeping an eye on all the economic data that's coming out this week," said Leo Grohowski, who oversees more than $184 billion in client assets as chief investment officer at BNY Mellon Wealth Management in New York.

Monday, June 22, 2009

Obama Promises Big Things: I say No Way

Kudlow asks his guests, "will we recover from this recession this year"? I, like his guests say, not until 2010. To be honest, I don't think with this recent stimulus package we will even see a recovery in 2010.

Let's review that stimulus package briefly: reduce tax deductions on housing; reduce tax deduction on charitable grants; raise tax on capital gains, which is still a double tax on dividends. Who is he stimulating exactly? The middle class into the poor house? You can no longer claim the entire house deductions you could before. You can no longer claim money you give to charity entirely as you could before. What does this mean? What does this say? Don't give to charity and don't buy houses.

We have Madoff coming to light. But I warn you now, Madoff isn't problematic, but symptomatic of what people not only have done, but can do in this market. People are now buying dummy corporations, running them into the ground and then claiming the insurance and bailout money. Also, the SEC has yet to have a proper response to the credit default swap fiasco.

And, we have the worst week in market history last week and this week isn't showing much light at the end of the tunnel. Already the DOW is down 25%. While the government wants to demonize shorters, stocks are steadily falling. Even Cramer, is pessimistic about the outlook. Today he had another screaming match on CNBC, but can you blame him?

Meanwhile on the precious metals, I have it on good authority that gold and silver in particular are being devalued. That's actually good news for potential investors right now. While everyone is laughing at Peter Schiff and calling him names for saying gold is going to go to $2,000 / oz, Jim Rogers is nodding his head as are some of the major players over seas. In fact, one such overseas investor went through the history of the DOW itself and pointed out how everyone was skeptical that the DOW would ever break one thousand. The rest is history of course, but he equates that to the price of gold. Everyone is skeptical that it would ever hit $2,000 but frankly with $7 trillion being introduced secretly into the economy via these awful bailouts, inflation is just a matter of time. In fact, hyperinflation isn\'t as far fetched as people like to also poke fun

at Peter Schiff for saying. We\'re seeing a rally on the dollar right now but honestly, we all know the dollar is manipulated more than a teen girl on prom night. There is no chance, nor hope that this rally is happening strictly due to market demand. And, we come full circle to gold. Now how far fetched is it, when I say gold is being manipulated. Gold should be $2,000 / oz if not $3,000 / oz. We don\'t even know the real value of the dollar. How can we scoff at $2,000/ oz gold?

Will there be an economic recovery this year? Review the facts for yourself. The market has no confidence in the administration right now. Obama promises big changes, but no one knows what they will be. The best thing he could do right now is step aside and let the market take care of itself. Stop these insane bailouts which leave the investor scratching his head as to how truly valuate stocks. Let these companies go into bankruptcy so someone smart can come in and properly valuate the company worth. Have the SEC throw the book at Moodies for not requiring full reserves while doing these credit default swaps, yet still evaluating their bonds at AAA rating. And, finally he should bring our troops home ASAP, which is why he and the Dems were put into office to begin with.

Unemployment came out today for a new high of 8.1% more than 650,000 lost last month alone: business -180,000; financials -44,000; retailers -39,500; hospitality -33,000. This is the highest it\'s been in a quarter century, since 1983. Right now they estimate 12.5 million Americans are out of work.

I guarantee if we pulled all the troops out of Iraq and Afghanistan, and the two other wars we are secretly fighting and paying for, we wouldn't be inthis economic slump to begin with. The military budget is some 60% of GDP, that is unconscionable. Without that spending, we could really reduce taxes and strengthen the dollar. And, no ... no terrorists were even involved in 9/11. You can debate me on that one in the next post.

I've said it, and Jim Rogers has said it too, take your money out of the bank, which isn't earning that much money these days [1%-2%] which are then taxed anyway, go buy a home safe and put your money in there. This will actually help the country. Leave only enough to pay bills with, in your bank account. Purchase real money items like gold and silver. Or treat 90 day t-bills as a bank account with a small return. Always remember to have a 6 month emergency fund, this is what should be in your home safe.




Kevin Cardinale of Boundless Enterprise

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