Wednesday, March 28, 2012
All News is Good News
We're back in a news cycle where, as far as the markets are concerned, all news is good news.
Terrible housing and durable good figures? Great! That means Bernanke will keep printing money and feeding it to the banks until the cows come home. So the markets should definitely zoom higher.
Better than expected employment numbers? Great! That means the economy is turning a corner and should be much stronger than anyone expects (Except for everyone.) Nobody really get how much stronger the economy is than everybody else thinks it is - except for everybody in the financial service industry - which includes everybody on Television.
That's the game. Why? Because all those financial industry employees make money off of keeping you in the markets. Once you lose interest, they're all out of a job.
The game works until the next crisis. Then everybody grabs their heads and shrieks; "OMIGOD! Nobody could have seen this one coming! Better run to your financial service industry professionals, because only they really understand this terrible complicated thing that's happened, and only they can guide you through this terrible time - even though they never saw this coming. Because Nobody could have seen it coming.
And then Ben Bernanke and Whoever is President will print up new Trillions and give it to the Banks. And everyone will shake their heads sadly and say: "This is terrible. Normally we don't endorse this type of Socialist Giveaway - But in this CRISIS it is clearly NECESSARY.
It happend under Reagan during the S and L crisis. Then under Bush during the Bank Collapse. Reagan and Bush: History's two Greatest Socialists. The men who oversaw the two greatest Socialist Money Transfers in the history of the world. And who are now regarded as Icons of the Free Market.
Who will be the next Icon of the Free Market? Whoever is president this year or next.