stock_creeper's  Instablog

Stocks have surged in recent weeks as Mitt Romney's 2012 nominee odds have surged and conversely Rick Perry's odds have plunged.  Wall St. is giddy over the prospect of a pro-Wall St. president like Mitt Romney or Herman Cain reappointing Bernanke and carrying out George W. Bush's pro-growth policy such as increased tax cuts for high income earners, bailouts for 2 big 2 fail to sooth the occasional hiccup of the free market, increased defense & homeland security spending, deregulation, free-trade, and elimination of capital gains tax.

Stocks will keep rallying as Romney continues to win swing states in hypothetical election against Obama and Bernanke's reappointment is assured. Obama's approval rating is making new lows every week according to Rasmussen and Fox polls because he is perceived to be weak on the economy, defense and his disdain for working, hard working American values. Obama not only doesn't believe in the flag or the constitution, but wants to see the economy fail and was secretly mourning Bin Laden's death. His failure to release the Bin laden death photos suggests some sort of solidarity with radical Islam and its practitioners.

Obama's declaration of class warfare isn't helping matters either. It can be argued that Wall st. not only creates value but is more important than mainstreet. The rich pay most of the taxes, consume the most goods and hence contribute the most to the economy.

It's still possible to have a booming economy & stock market without the participation of housing, small biz, or main street. Profits and earnings are blowout yet again with IBM and Google crushing estimates for the the 4,5,6? year in a row. No recession with large cap tech. Globalism, spendism and consumerism still unstoppable. We're still going to have more tax cuts, more spending, and tame government reported inflation despite record debt and a huuuge bull market that technically began in March 2009.

10 year rates have risen with the stock market and bonds have fallen, but I predict eventually bonds & stocks will rally together because the world is awash with so much liquidity that all asset classes ranging from stocks, commodities, treasuries and even munis will be lifted by this massive inflow of money.

 

China Q3 GDP Seen To Have Grown 9.3% Y/Y: Press

BEIJING (MNI) - China's GDP grew 9.3% y/y in the third quarter and will grow 9.2% over the year, the official China Securities Journal said Monday, citing forecasts in a report prepared by Tsinghua University.

The report, which was led by People's Bank of China advisor Li Daokui, said growth is set to moderate to 8.5% next year. China's economy expanded by 9.5% in the second quarter and 9.6% during the first half. It grew a revised 10.4% last year.

China's surplus is flowing into high end real estate in the Bay Area & New York , keeping prices high even as mainstreet is left out. (On a related note housing still keeps going up where I live..no housing bubble for me lol). Money is flowing into gold and silver, stock, treasuries, collectibles, high-end retailers etc. Like it or not, we're still in a global asset boom which began in 2002 and isn't slowing down. Web 2.0 valuations will keep going up. Facebook, Twitter, and Groupon recouped secondary market loss incurred in August thanks to this recent explosive rally. No bubble in web 2.0 or Silicon Valley. 

We need more pot holes, more Fox News. More crowded skools. We need more job loss and falling home prices so that interest rates never go up.

Unemployment? It's never going down, giving Bernanke a fail-safe excuse to never raise rates again even as gas goes to $4/gallon and profits and earnings keep blowing out estimates for a 13th consecutive quarter, and with his reappointment guaranteed thanks to Perry's downfall, interest rates may remain at 0% for the remainder of this decade.  Living expenses for necessities like gas and food keep going though the roof. College , insurance, and healthcare costs will remain on an unstoppable upward trajectory. This is good for the economy because it forces consumers to max out their credit cards on these inelastic goods rather than horde money. Stagnant money doesn't help the economy. Increasing monetary velocity does. The liberals want consumers to save more...it ain't gonna happen lol No lending for small biz losers lol . Massive crecit card & studfent debt. lol But it's still sustainable. Consumer spending has no been hurt whatsoever by persistently high unemployment, proving yet again I was right the lib / libertarians wrong as always. You have massive spending from foreigners and the rich and massive spending for lower-end retailers like Family Dollar and Dollar General.

I'm right about everything as always. We need to knock down the toolbooth .Make the pie higher. Pu food on the family. Make the highways of the internet more few.