All the canons out over the weekend to talk the market up.

[Neubarth]

Amazing propaganda attack by the Obama administration to try to keep the stock market going up while earnings are still falling!

Damn, I even saw Greenspan. Remember he was the son of a bitch who was strongly recommending Variable Rate home mortgages five years ago when the push was on to put Blacks and Hispanics into homes that they would have the pride of ownership in for a couple of years before all hell broke loose. Greenspan is a paid shill and nothing more.


I will believe the economy is improving when I see the Industrial Production numbers start going up instead of falling as they have for the past two years.

Now, the push is on to say that commodity prices are going to go up. AS IF! As if this is net additive to the economy. All it is is an indication that the dollar is going down. Shoot, it is down one percent against the Canadian Dollar this morning. Sure, commodity prices are going to go up. They are, already. If anything, inflation on foreign commodities will hurt our own recovery that the administration is saying is strongly in progress.

All the honks keep on saying it but the numbers do not substantiate it. We see minor ripples at the bottom, and we are at a bottom right now, but the recovery is not happening.

 

[Paulie]

Where are you seeing earnings falling?

Most big cap Q2 earnings either met or beat.

You're confusing earnings with revenue.

 

[Neubarth]

Where are you seeing earnings falling?

Most big cap Q2 earnings either met or beat.

You're confusing earnings with revenue.

Paulie there you go again with your crazy shit. Earnings are way down from two years ago. Damn, man try to pay attention to what is happening.

 

[Paulie]

Where are you seeing earnings falling?

Most big cap Q2 earnings either met or beat.

You're confusing earnings with revenue.

Paulie there you go again with your crazy shit. Earnings are way down from two years ago. Damn, man try to pay attention to what is happening.

Earnings are down year over year because revenue is down. But companies are still turning profits by cutting operating costs. This is healthy.

It's a recession Neubarth, what else do you possibly expect?

 

[Neubarth]

Profits are down tremendously. Profits have tumbled and stock prices have soared. P/E ratios are at an all time high for S&P 500 stocks. That is what I see.

And, as usual, you think everything is fine. Right, Paulie?????

 

[Paulie]

Profits are down tremendously. Profits have tumbled and stock prices have soared. P/E ratios are at an all time high for S&P 500 stocks. That is what I see.

And, as usual, you think everything is fine. Right, Paulie?????

As usual? You obviously don't know me as well as you think you do.

I've been a bear for a while, just not as bearish as you. In the longer term, I think we're setting ourselves up for a catastrophe. Right now though, it's not as bad as you are making out to be. There will be another recovery, and it will lead to a much less fruitful boom period, and a much worse bust.

What I take issue with here, is you bringing out numbers that are SUPPOSED to exist during a recession, and making it sound like the end of the world.

I agree with you on stock prices, though. The reason the market is up is because there is a ton of new money that's been created, and people are looking for places to start putting it so it can grow, rather than depreciate from the eventual inflation that we're looking at down the road.

So in a way, it's unhealthy, but it's also probably one of the smarter things people can do with their money. I have a few positions in my portfolio that are set up for growth long term, but those companies have extremely healthy balance sheets. Why investors wouldn't at the very least consider that kind of fundamental in this current environment is beyond me. But this is still a trader's market, and the name of the game once again is speculation.