The Tim Geithner Trojan Horse

How does this all end. 

At the margin it is Declining Consumption Economics versus Inequality Momentum.

Deflation is in play, look at commodities and oil as big picture pieces , yet Risk On is what is hot.

The Fed is the major factor, they are trying to tackle a problem that is outside their influence, middle class income. That basic factor is a direct effect of Tim Geithner’s influence. He sent the money to the big guys with virtually no restraints. The kinds of programs that would have changed the ground rules were ignored, maybe all of you should read Elizabeth Warrens’s book “ A Fighting Chance” .

The bottom line is what I have been saying all along, Obama got sucked in to the Big Guy approach, sadly maybe he always wanted to be a big guy, and this was his chance. Anyway the Republican writers are taking him to task now and rightly so:

I am not happy with this situation, as long time readers know, I was a Republican at one time, it is so much easier to be a Republican, you only have to think about yourself, not all the others who don’t get it. And now as I get older and I look at what is required to make life better for the middle class and fight for that result, I realize that the only real game that seems to be viable is to first get control of the money and then donate it to causes that meet one’s life view. This is the winner’s mantra and what Democrats and Republicans are fighting for as the next election approaches.

I cannot believe the number of emails I get from Democrat political groups to fund their efforts now that they think I am one of them. I am sick of it, I keep sending back emails saying I am tired of this, do the right thing, fight for the middle class, push back against Wall Street, accept no Wall Street money, and get a clean sheet going. Sadly, Elizabeth Warren is the only Democrat who gets it, and the Big Money Democrats will not back her, they are going to back a relic of the past, Hillary Clinton, a women who stayed married to a real blast from the past.

So what do I think about the markets now in technical terms, between now and the middle of October , a possible up-move in the S&P to 2000 is possible, then after that, some type of consolidation, first support starts 16 percent down at the 1700 level.  From there the deflationary, low consumption downtrend will begin.

If you don’t want to play this last 2.1 percent rally, BE SHORT.

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