Monday, June 27, 2011

The Banking Index Advance-Decline Data Hits New Twenty Year Low. Will Price Eventually Follow? Price Not Just For The Banking Index But Price Of Any Financially-Manipulated Asset Including Stock Indices, Real Estate, Emerging Markets And Commodities?

While most people would classify this remark as ridiculous, we have written for years that U.S. economic activity peaked in the late 1970s to early 1980s.   And the right data supports this perspective.   Maybe I’ll show and explain some of this in the future.  I haven’t given it much thought yet.  Even though there may be more people employed today, their employment has no impact on the creation of capital in this country.  They are simply employed because employment is necessary to collect their share of national income to clothe and feed themselves.  We’ll delve into this last point in more detail some time later this year but this bears repeating given the title of this post.  If capital formation peaked thirty years ago, why would it not be possible that some prices could eventually return to levels not seen in decades?  Especially if nothing is done to fix the horrendous subversion and corruption of democraxy.  This is impossible because?  Because your mind won’t allow it?   

I’ve never shown this chart before.  It’s not exactly a secret but I thought I’d give readers a little present.   That is, if one considers horror a present.   I share this little present to celebrate change you can believe in; the wonderful financial reforms our politicians have passed for our corrupt banking system and the economic “recovery” our financial and political overlords can’t seem to cite often enough.   Well, and I share this little present to celebrate Republicans and Democrats and the cesspool of fraud they have created. 

The “recovery”, as it is termed, is really nothing more than politicians, lobbyists and bankers pilfering more money while the rest of America suffers through often unspeakable economic misery.  Not that politicians or bankers cite this as a recovery for political or propaganda purposes.  We all know they cite the recovery for the children.     

In the Brave New World of junk Orwellian economics where finance, a tax on society’s capital, is glorified above any capital-producing activity by brilliant Ivy League-educated clowns such as Hank Paulson, Timmy Geithner, Barack Obama, George Bush, Lloyd Blankfein, Billy Clinton and Jamie Dimon and batting back and forth worthless paper instruments is now the key to our economic future as glorified by ivory-towered clowns at Ivy League business & finance schools, what does it say that the banking index advance-decline data, which includes the criminal Wall Street banks, is hitting a new twenty year low?  Does this mean the mythical free market believes that Wall Street is doomed?  The free market that Wall Street glorifies while it fearfully hides behind its crony oligopoly of taxpayer-funded Federal Reserve money.   Is it simply a matter of time until price follows to a new twenty year low?  Bueller?  Bueller?  Anyone?   

This all happens while both political parties jockey to gain an upper hand in the game of bribery by the finance industry’s campaign contributions for 2012 while both parties do absolutely nothing to address economic misery impacting millions of innocent Americans.  Misery that said politicians and bankers created for their own emotional instability, greed, power and control. 

As we have said incessantly, there is no recovery.   There never was.  There never will be without a new economic model.  This is not a recession.   It is an end to the world as we know it.  It is a cliff we sit upon until we reach the new normal some place in the nether regions below or until we get real leadership in lieu of authority that is willing to restore some modicum of economic democracy to this country.   Ultimately, that leadership will come from you or it will never come.   Your leadership will demand leadership in government policy or there will be none.  Your leadership will rebuild our democracy or there will be no democracy.  Your leadership will rebuild our economy or it won’t recover. 

The unstable mind is a wonder to behold.  Look at the glory of its magnificence in the creation of the Humpty Dumpty American banking system, fascism and systemic political corruption.

All of this said, remember something we wrote about incessantly before this crisis started and numerous times after it started.  The most severe  shocks on the back half of this crisis are going to come from outside of the United States.  

It’s good to be the king.  Not much longer though. 



Banking index in black.  Banking index advance-decline data in blue.  Bbbbbooyah!

posted by TimingLogic at 10:37 AM