A powerful and paralyzing shot to the jaw
Today's Financial News - Posted February 27, 2009
The markets are scared once again. Who is to blame? It does not take an expert to know Washington is up to the same old tricks. Who knew Uncle Sam was a heavyweight boxer?
By Andrew Snyder, TodaysFinancialNews.com
Baltimore – (TFN): Washington does it again. I have never been a conspiracy theorist by even the most liberal of standards, but this action has got me wondering. Could the government actually be trying to drive us into submission?
It is the last trading day in one of the worst months in Wall Street history and the only thing on the collective mind of American investors is what will Washington do next? In case you missed this morning’s opening action, all three indices plunged deep in the red on the news the Obama administration is likely to purchase up to 36% of Citigroup (NYSE:C) and, even worse, the new that the government’s original estimate of the nation’s recession was grossly understated.
If those two nuggets of information are not enough to make you hide under the covers or chug a fifth of whiskey, you are one tough son of a gun.
The Citigroup news is more of the same threat of nationalization. We’ve written and heard about it enough and by now you know the story. The government is doing its best to own everything it possibly can.
But this bit about the economy shrinking even further is downright nasty.
What happened to us?
Originally, the government told us the nation’s economy dwindled by 3.8% during the fourth quarter. That figure hurt and was about the equivalent of an ex-girlfriend slapping us in the back of the head. But now, the Commerce Department says the actual figure was more like a 6.2% decline.
What? Did they forgot to carry the one or something?
That figure more than hurts. It is the equivalent of the same ex-girlfriend’s tough football-playing new boyfriend popping us to the jaw. It is darn near paralyzing and certainly drops us to our knees.
A 3.8% decline created a challenge to climb out of. But a 6.2% will take an incredible amount of work, and most importantly, time.
Who knows, this could simply be a strategy to force the nation into socialist submission. It would make for one heck of a conspiracy. But I just cannot believe it.
No matter what, I stand by my guns (literally, at this point) and continue to advise investors to short the major equities markets. If you followed my advice when I advised taking the strategy, the last couple of weeks would have been filled with bliss instead of jaw-aching pain.
Next Article: Owning Gold: Will Executive Order 6102 be revived?
Posted by Andrew Snyder · Filed Under Featuring..., News that Matters, US Stocks and Markets
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