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Imaginary Credit Crisis Rages On; McCain Rally to Resume

The imaginary credit crunch, housing bubble, and recession rages on with the Dow Jones Industrial Average falling over 500 points on the collapse of Lehman Brothers and AIG. The bearish sentiment is probably more overwhelming now than ever before with the major indexes making yearly lows. However historically such abrupt one-day selloffs have typically marked capitulation bottoms.

The chart above gives two examples where the markets sold off suddenly in one day, and then subsequently rebounded. The Dow lost over four percent in mid 2002 on the collapse of Worldcom, only to transition into a new bull market a few months later. And the markets staged a very strong rebound after being halted following the 911 terrorist attacks.

It bears (no pun intended) remembering that the only only recession we’re in is a fake, Obama generated one. We’re also in a fake housing bubble and a fake credit crunch/liquidity crisis. Contrary to the boo hoo hoo Obama democrats the US economy is very robust, there is no housing bubble, tons of credit, tons of consumer spending, and huge liquidity. Keep in mind there have been no negative GDP quarters since 2001.

But how is that possible that the credit crisis or housing bubble is merely an illusion? With the markets plunging so substancially surely there has to be some sort of weakness in the foundation of the US economy. But there isn’t. The United States and global economies are driven by consumption by retail consumers and industry, and that consumption has showed no sign of slowing.

The US consumer continues to max out their credit cards to buy food, gas, ipods, computers, and other goods. Durable orders (expensive items such as cars, TV, Computers) numbers have held up very well. As I have repeated numerous times if there were were a credit crunch and a liquidity crisis consumers woudn’t be able to max out their credit cards in order to keep spending, but they are. Millions of people still using the Facebook, the Google, and Myspace, as well as buying Ipods and Blackberrys. Americans continue to drive even with $4 gas and $100 oil.

The financial and consumer disgresionary sectors are ailing, but globalism and huge consumer and industry spending is helping other sectors such as technology, energy, and materials. China, India, Russia, and Brazil still need tons of coal and oil, and while commodities have sold off a lot in the past three months, they WILL rebound, especially on an ineviable McCain victory.

For the survival the US and global economy itis imperative that McCain wins because he will perpetuate the war in Iraq and invade Iran, further pushing the dollar lower and the national debt higher. A weak dollar and more debt will benefit globalist, smartist, new era companies that depend on exports such as Research in Motion, Apple, Google, Visa, Mastercard, Patriot Coal, and Potash Corp. McCain’s free trade policies will further bolster global growth for multinational corporations. We need more consumerism, globalism, spendism, paymentism, and free market capitalism under McCain, as opposed to protectionism and isolationism.

And Palin does have more experience than Obama and isn’t condescending to working, hard-working Americans, white Americans.

It is time to open the borders because American labor is too expensive. Insourcing (from Mexico) and outsourcing labor (to China and India) elliminates such unnecessary expenses such as healthcare, medical leave, and pensions. In the smartist era that we’re currently living in perks such as job security and nest eggs are a thing of the past and there is nothing Obama or McCain can do about it. It is beneficial for the US economy and the smarties of the new world order to widen the wealth gap and increase profit margins for multinational, industrial, and high tech corporations through cheap labor and less regulation, which is why McCain will win, and why Obama will lose. The jobs are moving overseas and will never come back. Need to vote in 2008 elections. Need a college degree to be an informed, tollerant, multicultural, global citizen.. Need to make more money, spend more money, and save less. We need to drill in Alaska and offshore.

One Response to “Imaginary Credit Crisis Rages On; McCain Rally to Resume”

Comment from jeff
Time March 4, 2009 at 1:48 pm

obama was good on economy and stockmarket