by John Galt

December 22, 2009

The story from the Wall Street Journal says it all:

Bonds Are Signaling a Stronger Recovery

Excerpt from the article:

That measure is the yield curve — the difference between short-term and long-term interest rates on government bonds. That number is at its highest level ever, surpassing the record set in June, and signals that investors are expecting a stronger economic turnaround ahead.

Really? Are you clowns sure about that? They are under the impression that the yield curve steepening, a “traditional” measure is telling them that money is pouring into the stock markets.  With no apologies to the reporters of this article,  Emily Barrett and Joanna Slater, perhaps they should go and read a report or two before making an assumption of such grandiose idiocy.  Once again the propaganda machines are cranked to ’10′ on a scale of 1 to 10 as a desperate attempt to save the thieves on Wall Street and the bankster model continues to pound the heads of the citizens of this nation with bovine scatology. It’s bad enough we have three cable networks now promoting “All Bubblevision and Bubblenomics, all the time” with the incessant howling of the Fast Money circus types, the radio blaring stock hucksters like the clowns on locally from Boca Raton who held WaMu to ZERO and told their clients to hang tight on GM also, but now we have the administration doing whatever it takes to convince the masses that it is okay to risk their 40% lighter retirement funds because “this time it’s different” and they have saved the world.

Bullcrap.

Perhaps they should start thinking outside of the box and doing some actual “reporting” instead of going to one of the professional pump monkeys on Wall Street and looking at some actual facts. The first facts are directly related to the future of the real estate market:

Moody’s Adjusts Loss Projections On US Prime Jumbo RMBS

OOPS! That wasn’t supposed to happen. The Prime Jumbo RMBS end of the market is not subprime and was supposedly healthier than the rest of the market according to the NRA pump monkey experts they’ve been trotting out on television, radio and in print. But it gets even more interesting with this report from wow The Wall Street Journal:

Mortgage Market Continued to Falter in 3rd Quarter

That’s not good. The quote from the article is even worse:

The report said that just 67.7% of option adjustable-rate mortgages were considered current at the end of the third quarter, while 27.9% were either seriously delinquent or in the process of foreclosure.

So with 27.9% in the swirling portion of the porcelain bowl, what does this mean for 2010?

So here we are again, back to this chart to remind us that 2010 and 2011 are going to be horrendous for the real estate market but will you hear much about that in the Bubblemedia? Uh, rarely.

So if the real estate market is not looking good and I’m picking on the Wall Street Journal’s reporterettes for the original article what does a steepening yield curve possible tell us this time for those who think outside the norms and away from the nonsense of D.C. and NYC?

If they lazy “journalists” had dug into the truth they might even have stumbled upon this little chart courtesy of Clusterstock:

If you ignore the fluffernuttery and dig down further the data explains the yield curve divergence with even more clarity. People are terrified of the U.S. government and the ineptitude displayed the past nine years. They do not trust the actions of the government nor has faith been restored in the Wall Street Model with so many corporations using government crutches to stay on their feet instead of being allowed to fail as these still insolvent institutions needed to. Add in the fact that foreigners are dumping the long end of the yield curve and parking their U.S. Dollars in commodities and very short term (ye old 1-3-6) Treasuries and you get the true picture of what is happening.  In this case it is my argument that the yield curve is steepening because of a fear of massive defaults in the commercial real estate markets in the first two quarters of 2010 along with the belief that the government inflated GDP is unsustainable without a recovery in the automotive and housing industries.

A new storm is about to hit and this credit crisis is far from resolution. The bankruptcy filings and defaults we shall witness in the first half of 2010 shall bear me out to be correct in this matter. Let us all now kick back and enjoy the show as the propagandists come back with their “we don’t know what happened” specials and the government begins a new series of bailouts and nationalizations in a desperate attempt to justify the existence of corporations who should have long been vanquished along with “saving jobs” of those companies deemed “too big to lose those voters and campaing contributors” as the new year approaches. Meet the new year, same as the old one but with different companies and actors to rip off the taxpayers this time.

Merry Christmas and a Happy New Year to All!

by John Galt

December 22, 2009

“They have to find work.  And they are going for Botox or going for eye work, because the fact is we live in a society that punishes women for getting older.  And now they are going to put a tax on middle-aged women in a society that devalues them for being middle aged?”

Terry O’Neill, President, National Organization for Women

I kid you not. That is what they said. As a result tanning beds will now face a 10% surtax on each session or sale. Call me insane but how does not taxing botox and cosmetic surgery (elective) but taxing tanning beds help make this revenue neutral again? You see, the problem with this theory is the National Association of Women have an image problem as they proudly pronounced themselves as the unshaven, unwashed, hairy pit au naturale version of the modern free thinking woman for years and what the hell are they worried about with their image?

As you can see, we now understand why N.O.W. wants cosmetic surgery to be tax free but sadly, the billions of dollars it would take to clean up their image and “help” them find jobs in the normal workforce that most of us encounter on a daily basis. So those cute little sexy ladies  going into the tanning booth are just going to have to pay a wee bit more to stay sexy year round and the behemoths that represent the NAGs will get taxpayer subsidized dollars as they grunt, grown and howl into their plastic surgeon’s office who has a file for them titled “FUTILITY.”

The least the N.A.G.S. could do is cook their food before they eat it.