stock_creeper's  Instablog

They were wrong that:

1. Obama's polls would rise with the stock market. Stocks keep surging but Obama's poll are plunging. Obama's intrade odds have finally fallen below 60 thanks to a combination of factors like oil & gas prices and Iran.

2. There would be some sort of reversion to the mean for profit margins. Keep waiting because those profit margins will keep widening just when you think it's impossible for them to widen anymore. Surging productivity means more output can be squeezed from each worker. This trend is sustainable, get used to it.

3. Santorum's strategy of eschewing the economy for wedge issues would end in disaster. The opposite has happened: Santorum is winning primaries and Obama's polls are falling. These wedge issues are much more important than liberals realize.

4. Surging gas & oil prices would hurt the economy. Still waiting for that straw to break the camel's back? Ain't gonna happen. Liberals are always underestimating the consumer and overestimating the economic effect of high gas prices. lol

5. Matt Taibi is a bi-partisan journalist. Actually, he voted for Obama in 2008 along with Karl Denninger and then rest of these anti-fed liberals masquerading as libertarians. Business Insider, Zerohedge, Huffington Post are bastions of liberal anti-fed sentiment. Bernanke is the Bernanke enabler of wealth through fed policy, so predictably the wealth-spreaders are opposed to him.

6. The GOP would lose women voters by attacking contraception. Most Americans, women included, are opposed to contraception mandates.

7. The market is like a crack addict to QE and bailouts. How does this explain Apple's and Google's earnings, which have nothing to do with financial sectors? How about that profits and earnings have doubled since March 2009 for non-QE related sectors like tech and retail? The underlying economic fundamentals are stronger than ever. The role of QE is to keep stocks going up and yields as low as possible and to force people to stop hoarding money and keep spending.

8. The GDP-less recovery isn't sustainable. To a lib, only GDP growth matters. Not more important stuff like profits, fed policy, earnings, exports or consumer spending (which keep doing great). According to the left, unless the GDP is growing at least 4% a year the economy is weak. No wonder they keep being wrong about the stock market. GDP is not important, get used to it. It's easy to attack the weakest part of the economy like jobs and GDP to justify lower asset prices. Wall St, on the other hand, doesn't care much about jobs, China, housing, Europe or GDP.

You can't keep this market down. The DJIA is up another 80 points this morning because of the prospects of more QE even though stocks are up huge this year and profits and earnings have been blowout for 14 consecutive quarters. Or that PE ratio of the S&P 500 is still only 14.

Does Bernanke actually care about the labor market or unemployed people? Obviously, no. His pre-occupation with employment is an excuse to justify leaving rates at 0% forever. Interest rates and income taxes are never going up again. That's all that matters to Wall St., not job creation. This is an example of how job loss is good for stocks and the economy by providing an excuse to never take the foot off the gas pedal.

Thanks to fed policy we're witnessing wealth creation on an epic scale.

Get ready for even more pain at the pump, more productivity, more exports, and huge consumer spending. It's still an economic boom even if you can't see it.

Here comes dow 13500 and oil $110. Gas prices will keep going up, and so will the finger pointing by the talking heads, bloggers and politicians about who is to blame. Those who are expecting gas prices to hurt the economy will be greatly disappointed.

People like me will keep making effortless money buying the dips while losers keep complaining about the economy. I think ppl maxing out the creidt card on gas is funny. Same for ppl who complain about job loss and debt.