February 9, 2010, 4:00 pm EST — Closing Thoughts … The Standard & Poor’s 500 index closed up 13.78 to 1070.52, as HOPE was the flavor of the day. HOPE that the European Union will help Greece manage its growing debt burden, which is less than what the US Fed spends in interest in one day. HOPE that Obama nation continues to “cook the book”. HOPE that China continues to buy USA paper, even though its worthless. HOPE that the financial media continues to supply the public with misinformation to cause stocks to move higher. HOPE that Buffett lives to 150 and doesn’t run out of money. HOPE that Paulson’s whitewash book has a clue why he stutters. And cross our heart and HOPE to eat our weight in honest facts. …
The noise that the way Greece goes so goes the stock markets is total bullshit. As for Ireland, Portugal, Spain to follow the need for financial relief — so what? Get real! The entire financial system is broken, caused by the United States lack of fiscal restrain. EU should go the way of Helicopter Bernanke —- print more paper and make believe that no problems exist. When it came to talking and writing about the workings of the federal government — fake it! So far its working. Hey, European Central Bank President Jean-Claude Trichet are you listening? … The market’s moving higher illustrates how reliant traders around the world are on soothing words from policymakers. Apparently, if you’re going to lie tell a BIG LIE, they will believe it better. Stocks have moved higher for nearly a year because the Federal Reserve has pledged to hold interest rates low to help revive the economy — thanks Bernanke. …
As we have been say for over a year — The flow of cheap cash is the biggest driver of the market as traders lack viable option because the Federal Reserve has rigged values, and trapped the Chinese into playing our game or else. Indeed, how will markets fare when the Fed dismantles its emergency support programs to insure the rich remain rich? The little guy doesn’t have a pot to piss in and at this stage doesn’t care. What happens when home loan rates rise and unemployment doesn’t go down? It’s like the last call at the bar. Traders should smarten up and determine what will happen without the massive liquidity that keeps the party going. Are we scared” You bet we are! The manipulated and delicate reconstruction of the system, which has been going on for two years, can shattered like a heart attack. Are you ready? …