Obamarket Update#(Whatever) for August 31, 2009: The Bananas are Back

by John Galt

August 31, 2009

chiquitabananaladycartoon Ah yes, the good old days are back again. The bananas took a much needed break this summer and went on a brief sabbatical not to gloat about their appeal, but instead to relax because God emailed them and told them to take some time off. After this message from Obama, they decided to split to greener pastures and relax in the tropics to enjoy some time off with their green brethren and look for a future where a slippery slope could be part of their dancing activities.

The markets in the last 8 weeks were bleh. You hear about the cheer leading. You hear the nonsense about what a great earnings season this was, even though revenues were down over 30% for the majority of companies reporting. You heard the crappola that the banking crisis is in check even though the FDIC numbers tend to indicate that there are more problems to come and that they will need a cash infusion and fast. You heard from Bubblevision for almost a year now about “all that cash on the sidelines” and you still hear the same line; yet money is still parked in short term Treasuries yielding less than 1% or in the very short term, less than 0.20%

It’s sort of funny, like a dancing banana, as to why you never hear those things from the clowns. Sadly, they have not stopped. I heard the same nonsense repeated this evening about how this was a “broad based” rally yet even from tonight’s edition of the Wall Street Journal Market Data pages, you can see that some of the usual suspects being day traded between the big houses composed the largest volume participants:

mostactives8_31

Thus you can see why I’m not excited and the bananas went to the islands to consume mass quantities of Banana , er Strawberry Daiquiris while sunning themselves.  Now that they are tanned rested and ready, they will have a lot to say, especially to provide balance against the nonsense being broadcast from DC and Wall Street to attempt to fleece the Baby Boomers from what is left of their retirements and hopefully provide a perspective on the daily market activity.  As you review that little snippet from the WSJ above, the math is simple; on a day when 1.377 billion shares traded on the NYSE in total, C and BAC accounted for just over one billion of the shares.  Hence the Bubblevisionista theory that the “masses” are closing their FDIC insured Christmas Super-Saver accounts and rushing to their brokerages to buy stock is total insanity.

Thus we’ll offer the JohnGaltFla perspective on where we see things heading and remember, I’m only speculating that this bubble isn’t going to last or work for the long term; not yet at least.

Remember this chart from www.chartoftheday.com of the P/E ratio of 129 on the S&P 500? Check out the chart from the following week side by side and think:

chartofthedaysp500PE2009082120090828

The bottom line? It would appear that this parabolic move is about to correct and unfortunately for Ben Bernanke, in a similar fashion to the early 1930’s. Does this mean we will end up in a deflationary depression? I and the bananas find that unlikely however the probability of the Fed and Treasury engaging in the open purchase of equities to hold bogus valuations of pension funds up and to delay a total collapse, at least until Congress acts one way or another,  would not shock me.

Stay tuned boys and girls, the fun is just beginning. And I fear that September of 2009 could be just as much of a month to remember as the same period in 2008. Time to make a few Banana Daiquiris, er Pina Coladas to deal with this fiasco. The last thing I need to do is upset a bunch of my BBB’s (Big Banana Boosters) especially when those big money fruits return to work after Labor Day.

tuxedobanana

Advertisements

8 Comments

Filed under Uncategorized

8 responses to “Obamarket Update#(Whatever) for August 31, 2009: The Bananas are Back

  1. Steven Greene

    Very outstanding, but I have one question. I see this, many others see this, but the economist do not say anything about it. Almost like they are turning their heads. The media ignores it, WHY?

    • Administrator

      Steve, it is part of the agenda. Most economists you see on television work for who? That’s right, academics who have government contracts (via their schools), political agendas OR work for the major brokerages who have stocks to sell to willing dupes. That is why you have to investigate every claim (yes, even mine, lol) and find out the truth.

  2. Good post good point. Another factoid I need to listen to.
    I voted for Obama, I was wrong, Please forgive me.
    All who voted for Obama, get real, we made a big mistake,
    it is better to admit that we did wrong and try to correct
    the situation, than to go down. Obama is a communist,
    his election was a fraud. He has not even shown us his birth certificate, just an official piece of paper that says there is an official piece of paper.

  3. Howard Hughes

    Most retailers make there year during X mas season.
    I looked into my crystal ball and I saw a lot of
    em disappear after the holidays.
    Boys and girls, The carnage has just begun

  4. @ Steve Greene,

    Look to who owns and controls the media. This is all part of the “happy talk” just like 1932-1937, when “good time where just around the corner”… then the war had to happen to get the economy rolling again. Economists are minions of their university/political/news studio owners. If you dont tow the party line, you’re fired. Smile!

  5. @ Steve Greene, This is all part of the “happy talk” just like 1932-1937, when “good time where just around the corner”… then the war had to happen to get the economy rolling again. Look to who owns and controls the media. Economists are minions of their university/political/news studio owners. If you dont tow the party line, you’re fired. Smile!

  6. Pingback: Today’s Breaking News! – September 2 – 3, 2009 « Today's Breaking News!

  7. Pingback: Odds ‘n Sods: | Theology Today