Comments on: Factory Output is Growing Again http://www.jaxobserver.com/2009/08/24/factory-output-is-growing-again/ Your Independent Alternative! Sat, 13 Aug 2011 16:20:42 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Glenn Atias http://www.jaxobserver.com/2009/08/24/factory-output-is-growing-again/comment-page-1/#comment-2272 Glenn Atias Mon, 24 Aug 2009 13:16:56 +0000 http://www.jaxobserver.com/?p=5152#comment-2272 Inventories are down so we'll see some manufacturer activity to restock. This happens in every depression, and we had 2 waves of factory order jumps in 1930. Doesn't alter my view that we're in the early stages of a monumental depression. None of the imbalances have been corrected, the Fed has merely blown up a bailout bubble to hide the housing bubble. And the stock market run-up is just a by-product of the bailout bubble - 2 trillion in TARP funds (borrowed from future generations) is finding it's way into the market through the back door. The party in the market will end soon. The green Shooters don't like to talk about PEs, which are running > 100. There simply are no earnings to justify the price, it is definitely liquidity. But liquidity is such a nice tame name. But that name hides a lot of outrage. We go and borrow 2 trillion from future generations to prop up bad paper in the banks while the American consumer bleeds to death. Then the banks launder that money into the market through the back door. This is a Generational Ponzi Scheme. It will burst, because it's a phony baloney funny-money market run-up, with no fundamentals. I give to 10,500, then the bubble pops. And stimulus won't work. It merely pushes against consumers who are refusing to spend. Stimulus only works in a spending environment, all it will do is cause monetary inflation (as opposed to price inflation). This is going to require time for the 114 million US households to save and finally balance their books. So far the only ones bailed out are the banksters at the top who walked off with the store - again. Inventories are down so we’ll see some manufacturer activity to restock. This happens in every depression, and we had 2 waves of factory order jumps in 1930. Doesn’t alter my view that we’re in the early stages of a monumental depression.

None of the imbalances have been corrected, the Fed has merely blown up a bailout bubble to hide the housing bubble. And the stock market run-up is just a by-product of the bailout bubble – 2 trillion in TARP funds (borrowed from future generations) is finding it’s way into the market through the back door.

The party in the market will end soon. The green Shooters don’t like to talk about PEs, which are running > 100. There simply are no earnings to justify the price, it is definitely liquidity.

But liquidity is such a nice tame name. But that name hides a lot of outrage. We go and borrow 2 trillion from future generations to prop up bad paper in the banks while the American consumer bleeds to death. Then the banks launder that money into the market through the back door. This is a Generational Ponzi Scheme.

It will burst, because it’s a phony baloney funny-money market run-up, with no fundamentals. I give to 10,500, then the bubble pops.

And stimulus won’t work. It merely pushes against consumers who are refusing to spend. Stimulus only works in a spending environment, all it will do is cause monetary inflation (as opposed to price inflation).

This is going to require time for the 114 million US households to save and finally balance their books. So far the only ones bailed out are the banksters at the top who walked off with the store – again.

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