Tuesday, July 26, 2011

Tues Update- "Don't believe the Hype"

On Friday, July 22nd, House Majority leader John Boehner abruptly left a meeting between himself and the President because supposedly Obama "moved the goalposts" or whatever that means.  

They agreed to continue to talk on Monday.

But someone-- we're guessing some higher above power that pulls the political puppet strings of both parties, seemed to scare the President and Boehner into talking all throughout the weekend.  Some nonsense about keeping the Asian markets calm and investors (those precious little souls) from panicking.  

No agreement was made before Monday.  In fact as of this moment of writing on Tues, no debt ceiling or debt reduction agreement was made.

All weekend into monday and today the lazy, corrupt media has been spreading fear that the world will collapse and endless fire & brimstone..  Has it yet?

Let's take a brief look at numbers- they don't lie:

The Dow at the close of Friday's bell was 12,681.

After practically 2 days of trading since, the Dow is at 12,543 as of 2:45p.

This is a drop of 138 pts and to novices, may seem like a lot.  It isn't.

On Wed, July 20th, the Dow ended at 12,571.   That means in the span of just about 5 trading days from the 20th to the present, amid all the non-stop incitement of fear and panic from media, pundits and politicians, the market has dropped a whopping total of.....

42 points.

But you say.. well look at Asian markets- they must be tanking?

Japan's Nikkei ended today +47;  China's Hang Seng at +278

Well what about Europe?  They must be freaked out huh?

Each indice did its own thing.. some went up, some went down but nothing drastic or catastrophic; nothing to do with the US debt debate and debt ceiling showdown.

Ohh well.. you say.. Markets will still panic when nothing is done next week..

Yes they very well might.  It would be called an Orchestrated Panic much like in late 2008 when the original $700 Billion TARP was voted down in Congress after that scum Hank Paulson said if not passed, the world would end.  So Wall St. purposely, intentionally, willingly and spitefully Crashed the market by 1100 pts in two days to scare the willies out of Congress to give them their money.

So expect a lot of drama and theater next week.

Think of it this way:  You're on an elevator in a large office building when it stops suddenly and shakes and feels like its about to drop-  now that would be a Genuinely scary situation.  Goodness knows what will happen next.   OK  Now, picture yourself at Disney World at the Haunted Mansion attraction.  You enter the main room which eventually acts as 'elevator'- it shakes and makes you feel like you're falling endlessly.  People scream and yell but its all in good fun- Everyone knows that really nothing harmful is to come about from the experience.

This is precisely what next week will be, assuming nothing is agreed to by Sunday.

You can choose to be intelligent or you choose to get sucked into the hourly updates and he said/he said until you have knots in your stomach and want to scream.

1)  The Debt ceiling Will be raised.  Today-- Tomorrow-- Aug 2 or Aug 4th.. By congressional agreement or on the President's own initiative via the 14th Amendment.  Ultimately it will be raised.

2)  There will be some Debt reduction plan that pretty much Everyone will Hate.  The key is will the wealthy be the only group excluded from feeling Any pain?  Or will the President capitulate again like in December with full extension of the Bush tax cuts?

And now you're updated..  "Don't believe the Hype"

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