Another Huge Day of Gains

By iamned - Last updated: Thursday, April 30, 2009 - Save & Share - One Comment

This is shaping up to be another great week. The flu pandemic was a dud, as I astutely predicted. No one cares about banks and crisis anymore. Yesterday, helicopter Ben alluded that the recession “appears to be somewhat slower”, and that he has no plans to remove the punch bowl. Once again, the adage ‘don’t fight the fed’ holds true.

Seeking Alpha Author ‘Marketing Charts’ reflects on the improvement in consumer sentiment:

Although overall levels of the Consumer Confidence Index are still low, retailers and other businesses can still take the significant growth in its numbers, especially in the Expectations Index, as a positive sign about the current mindset of US consumers. There have been a number of mixed positive and negative economic and consumer behavior signals so far this yea…

I concur. Consumer spending is returning with a vengeance as consumer confidence rebounds.

Laughably, leftist pundits are predicting some new ‘age of frugality’, risk aversion, de-leveraging, regulation, misery, and restraint. Fools. That’s not going to happen. We’re still in the age of prosperity and unfettered free market capitalism; the anathema of the piss-poor, Ron Paul endorsing isolationist. Below is a picture of some of these sore losers:

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More maxed out credit cards, deficits, and widening of wealth gap, which is bullish for stocks. Need to outsource more jobs. Too much employment bad for profits. Although personal savings rates are hovering around five percent, I anticipate they will go negative by the end of the year, and remain that way.

rth

I still stand by the claim that that nothing changed fundamentally with regards to the US economy between now and April 2007. Just a temporary dip in GDP.

This bull market will be a perpetuation of consumerism, materialism, spendism, globalism, and a get-rich-quick mentality - the same constituents of the 2002-2007 bull market. Like the last bull market we will also have a jobless recovery, and as expected pessimists will be dumbfounded by how quickly the stock market and economy recovers in spite of this. Dow 14,000 here we come.

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One Response to “Another Huge Day of Gains”

Comment from Jeff
Time April 30, 2009 at 6:50 pm

“Although personal savings rates are hovering around five percent, I anticipate they will go negative by the end of the year, and remain that way.”

Eventually these maxed out citizens will declare bankruptcy meaning huge losses for credit card companies and other loaners which in turn results in lower purchasing power since these people won’t be able to obtain credit.

Since a negative savings rate isn’t sustainable, how on earth do you explain how your “Goldilocks economy” can persist?

Sadly you can’t because you have no experience and never explain your POV.

I love how your seeking alpha profile says “Cetin is a recreational stock market & economics enthusiast who enjoys surfing the internet, watching TV, doing math, reading the paper, and listening to talk radio in his spare time.”

AKA, unemployed.

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