My posting of Timmy Geithner's "Welcome to the Recovery" turns out to be quite prescient. As I have posted for years now anytime these liars get on the TV and say "here is the green shoots" or "things are turning around", they aren't. Do not be deceived by these liars like Jim "buy BearStearns" Cramer. They are there to mislead you, and to keep you in the market. Whether or not you make money is irrelevant, the bankers make money when you buy, or sell, and remember this is just money changing hands, people are short everyone of these stocks.
Markets in developed countries do not behave as the US market does which is now down 7% in one week. Clearly today the baby got thrown out with the bathwater as well (due to margin calls among other things), which in some cases (such as gold and silver) present buying oppurtunities.
We were told that if the US didn't raise the debt ceiling the wheels would come off the truck, the markets would be in freefal and bedlam would ensue. But we have raised the debt ceiling and the market didn't like it. They say the market is a group of millions of individuals who look at the economic data and invest accordingly and clearly when investors survey this situation they don't like what they see. I know I don't.
With the end of QE2 the life support has been pulled off this market, people put money in when they realized the government through the Fed (or perhaps the other way around) would spend trillions in order to pump up the DJIA. However this was all just artificial, it was basically a sure thing with trillions of dollars being pumped in things will rise. For now though the market is on it's own and its sickness is quite apparent.
I don't need to go on a long diatribe about the myriad of problems the US and US economy has, just click on the Economy tag at the bottom of this post, or check out the economic collapse blog (and various others)
The bottom line is the US is nearing the end of it's rope, perhaps they can kick the can further down the road, they have done a great job of that so far, but inevitably the piper must be paid. Despite what you have been told there are consequences for actions, printing money causes inflation, and running up an unbelivable amount of debt causes a collapse of your economy. It might not be this time, but it is coming.
