The Economy Guy

Stocks moved sideways mostly today, but ended up just over 8000.  This was in the face of a very bad unemployment report.  Stocks are irrational, and this is proof.  This has been the best stock rally since 1933.  I might add that the Great Depression continued through 1939, so even if this is following the Great Depression, you can count on a lot of misery over the next few years.

Bonds got clobbered (interest rates way up) as the amount of bonds coming on the market next week spooked the traders.

The Dollar, oil and gasoline all went sideways.

Gold went down again today below $900/ounce.  This might be another buy opportunity, but wait for the fallout next week.

In the news today…..

The Unemployment Rate jumped to 8.5% in March from 8.1% in Feb.  During the month of March we lost 663,000 jobs.  Also, given the current weekly unemployment claims being made in April, this trend of a massive unemployment gain is expected to continue.

Fannie and Freddie are going to give their employees $210M in bonuses this year.  And, I might add, they are paying for it with your tax dollars.  So, where is the outrage in DC this time?  It doesn’t exist because everyone knew about it, as they did about AIG.  What a bunch of scumbags.

10% of the population of the US are getting Food Stamps.  That is 32.2 million people.  The average payment in January was $113 to each person.  A typical family of 4 will get an $80 boost to their Food Stamp money starting soon, and that added money is coming from the Stimulus Bill.

Food for Thought – Tonight’s Dinner Conversation…..

Remember Geithner’s plan to solve the “toxic asset” problem that our big banks have???  It’s called the Public-Private Investment Program, and also please remember that YOU will be paying big incentives to the “investors” who are putting in their own money!!!!!!!!

Well, here is the rub.  The exact same banks who are holding those assets are putting together plans to purchase the other banks’ “toxic assets.”  

Does this sound insane to you?  Or, am I just smoking something?????

So, the TAXPAYER is giving money to those greedy, incompetent banks, and they are going to use that money to buy more toxic assets.  Only this time, they will be on the receiving end of the “incentives” promised by Geithner and make a bundle of money out of the deal.

Are you hearing anything about this scam on the news yet???  I haven’t seen it yet, but this is so explosive that it must hit the news sometime.  Enjoy the blast when it happens.

Here are the last numbers for today:
Dow Jones 30 Industrial – 8018 (up 40 points)
10 Year Treasury Bond – 2.91% (up 0.16%)
Euro – $1.3487
Gold – $897 (down $12)
Oil – $52.51 (up $0.13)
Gasoline – $1.49 (down $0.02)