Fed Bernanke Sells Out

Since March 15, 2009 to present, the DOW has gone from 6,500 and projected to climb to 10,000. 

This will represent a 54% gain. My view is that this DOW increase is based on P.R. and sound bites first of Secretary Geithner and most recently, FED Chairman Bernanke in concert with Wall Street players and insiders. The fundamentals do not exist for the stock market's mysterious climb.

30,000,000 jobless and growing...1,400,000 foreclosures in 2008...1,800,000 foreclosures in 2009...50%-80% of all Existing Home Sales are Short Sales in Florida, California, Nevada, Arizona...Little Consumer Confidence...No Consumer Spending...Significantly Increased Bankruptcies...Little or No Business Investment...Huge Deficit Spending...Record Defaults on Credit Cards, Assuredly coming INFLATION, etc.

Fed Bernanke sought re-appointment (and got it) after his profoundly self-serving statements, "The U.S. and Global economy appear to be leveling out." Such unfounded sound bites assured his re-appointment, but Mr. Bernanke is now, nothing more than the current front man for another U.S. Government misrepresentation of the economic facts. Real estate home prices fell 30%-60% due to Wall Street's corrupt mortgage backed securities. Billions were made by Wall Street. And the U.S. Government bailed out the Wall Street Banks and does little for Main Street America.

If you believe in Wall Street and Bernanke and invest in stocks now, (at their highs) your upside is that stocks might go up another 4%-6% but your downside is that you will face possibly as much as a 54% loss of your money.

Since the stock market rally is not based on "real" GDP growth or economic fundamentals (since it's gone from nowhere to just 3.5% more than nowhere) it's all just P.R., fueled hope or wishful thinking, (often called a sucker's rally) there is a greater chance the market has lots of room to fall. Even if it gives up just half it's gains, that could mean a 27% loss for you.

In real life, it's hard to earn money. It's easy to give it away, and print more. Bernanke has once again inflated the balloon. This time, to keep his job and save face. And while this balloon may seem firm tonight, in the morning it too will go limp.

Warmest,

Richard Michael Abraham, Founder

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