Monday, September 27, 2010

"No End in Sight"

Every now and then there's an article that provides an honest glimpse into our financial future. Today in the Wall Street Journal: Banks Keep Failing, No End in Sight:
The largest number of bank failures in nearly 20 years has eliminated jobs, accelerated a drought in lending and left the industry's survivors with more power to squeeze customers.
The contraction represents an enduring threat to capital, lending and the economy. "When we step back and look at this financial disaster 10 years from now, the destruction of capital in our economy as a result of what we've endured will be the single greatest lasting impact on recovery and how the economy performs in the future."
The impact to the system has been "far more severe" than the savings-and-loan crisis. Not only were government rescue measures more sweeping and more global this time, the weakness in real estate continues to constrain economic growth. Since 2008, the industry's assets have shrunk by 4.5%.
And there's "no end in sight." As I've been saying for some time on the right sidebar, "a great deal of illusory capital is about to disappear."

Monday, September 20, 2010

Stock market update: Breakout?

If intra-day lows and highs are considered, then the S&P 500 index has finally broken through the nearly-horizontal upper trend line that's been in place since May.

However, if we only look at closing prices, then the S&P 500 finished the day today smack dab on the rising upper trend line, signifying nothing.

Even if this turns out to be a breakout and a continuation of the rally that began in late August, it would only mean an even more over-priced and fundamentally shaky stock market in the long run. I don't plan to buy any stocks any time soon.

Democratic Party = Socialist Party

For the record:

Friday, September 17, 2010

As goes Europe, so goes Blue State America

Ironically, the most anti-religious places in America (the Bluest/most Liberal) are proving the be the most susceptible to Islamification. Of course, when you consider that Blue states model themselves after European socialists, and that Europe is gradually succumbing to Islam, it may not be so surprising after all.

The Ground Zero mosque in New York City, which has the support of our first Son of Islam, Barack Hussein Obama, may prove to be the opening round in the as yet non-violent national debate over Islam in the U.S. Last year I witnessed local Islamification in person when I happened upon a strange hidden weekend meeting about Islamic banking on the campus of Boston University. Now there's this eye-opening example of Wellesley students visiting Boston:

It's bad enough that Red and Blue states have developed irreconcilable differences of opinion about the power of government versus individual liberties, but given enough time Blue states will be agitating for nationalized Sharia Law with the religious fervor of Muslim warriors. I don't want to be around for that civil war.

Wednesday, September 15, 2010

How the Brits saved Western Civilization (again)

Today is the 70th anniversary of the Battle of Britain Day, the date in 1940 when British Spitfire and Hurricane pilots officially turned the tide in the airborne defense of England against Nazi Germany's Luftwaffe. Although German fighters and bombers began their campaign in July, and would continue their attacks until the end of October, the downing of nearly 200 Germain airplanes by the Royal Air Force on September 15 marked the end of Hitler's plan to invade England.

Few today remember just how pivotal this battle was or how long the odds were for a British victory. The United States was still out of the war, and the United Kingdom was essentially fighting alone. Had Hitler defeated the RAF in 1940, it would have paved the way for a planned German invasion across the English Channel - D-Day in reverse. If the United Kingdom had fallen, it would have left America with no ally in North Africa, it would have left no staging area for an allied attack of Europe, and it would have allowed Hitler to mass more of his forces on the Eastern front when he later attacked Russia. All of Europe and much of Asia today would probably be part of either a Nazi or Soviet empire, and the world would be a much scarier place.
Never in the field of human conflict was so much owed by so many to so few.
-Winston Churchill, August 20, 1940

Even though large tracts of Europe and many old and famous States have fallen or may fall into the grip of the Gestapo and all the odious apparatus of Nazi rule, we shall not flag or fail. We shall go on to the end, we shall fight in France, we shall fight on the seas and oceans, we shall fight with growing confidence and growing strength in the air, we shall defend our Island, whatever the cost may be, we shall fight on the beaches, we shall fight on the landing grounds, we shall fight in the fields and in the streets, we shall fight in the hills; we shall never surrender...
-Winston Churchill, June 4, 1940

Saturday, September 04, 2010

Market update: whatever

The S&P 500 index refuses to start an upward or downward trend. It closed at 1105 on Friday, which is 4 whole points away from where it was on November 16 of last year (1109). Meanwhile, stock market sentiment is perfectly neutral by my reckoning.

Long term forecast: still dismal

Short term forecast: whatever