THE DOT - if this turns orange or red be alert

Tuesday, February 23, 2010

part 2

2. The little correction I assumed was due down to 1075/80 started right after the expiration from a bit higher level. We might still reach the 1080 by tomorrow but we also should see wave C up thereafter testing the 1125 level after some really troubling news today we know that its only a matter of time until the bulls need to capitulate and liquidate their hyped campaign after even Greenspan admits that things are not going well. Actually there is not a recovery at all just some fabricated numbers and a rally in stocks manufactured by the same gangsters which caused the depression ( including the FED and former Chairman Greenspan ).

Excerpt

WASHINGTON (Reuters) – Former Federal Reserve Chairman Alan Greenspan said on Tuesday the U.S. economic recovery was "extremely unbalanced," driven largely by high-income people benefiting from recovering financial markets and large corporations.

Greenspan, speaking to a Credit Union National Association conference, said small businesses and lower-income people are still suffering from the aftermath of a credit crunch that was "by far the greatest financial crisis globally, ever."

Greenspan said he believed that staffing levels at U.S. firms remained below what was sustainable in the long run, pointing toward a modest recovery in job creation. But he added the unemployment rate may remain stubbornly high.

3. McCain calls Paulson and Bernanke what they are liars (in nicer words though)

excerpt

McCain: Paulson and Bernanke Promised that the $700 Billion Troubled Asset Relief Program Would Focus on the Housing Meltdown


The Arizona Republic reports:

Sen. John McCain of Arizona ... says he was misled by then-Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke. McCain said the pair assured him that the $700 billion Troubled Asset Relief Program would focus on what was seen as the cause of the financial crisis, the housing meltdown.

"Obviously, that didn't happen," McCain said in a meeting Thursday with The Republic's Editorial Board, recounting his decision-making during the critical initial days of the fiscal crisis. "They decided to stabilize the Wall Street institutions, bail out (insurance giant) AIG, bail out Chrysler, bail out General Motors. . . . What they figured was that if they stabilized Wall Street - I guess it was trickle-down economics - that therefore Main Street would be fine."

McCain isn't the only one to say that Paulson was doing a bait-and-switch.

The TARP Inspector General found that Paulson misrepresented the too big to fail banks' health in the run-up to passage of TARP.

Congressmen Brad Sherman and Paul Kanjorski and Senator James Inhofe all say that the government warned of martial law if TARP wasn't passed (Inhofe says Paulson was the one doing the talking).

And Paulson himself has said:

During the two weeks that Congress considered the [TARP] legislation, market conditions worsened considerably. It was clear to me by the time the bill was signed on October 3rd that we needed to act quickly and forcefully, and that purchasing troubled assets—our initial focus—would take time to implement and would not be sufficient given the severity of the problem. In consultation with the Federal Reserve, I determined that the most timely, effective step to improve credit market conditions was to strengthen bank balance sheets quickly through direct purchases of equity in banks.

So Paulson knew "by the time the bill was signed" that it wouldn't be used for its advertised purpose - disposing of toxic assets - and would instead be used to give money directly to the big banks. But he didn't tell Congress before they voted to approve the TARP legislation.

No comments:

About Me

I am a professional independent trader