sentiment

dead hobo Says:
April 16th, 2009 at 3:02 pm

The chart is excellent circumstantial evidence that textbook monetary theory is basically crap. Sentiment powers everything. Even the value of a dollar in a growing ocean of dollars.

Sentiment is powering oil at $50, rather than the much lower price it should be at right now. Copper is being powered by dreams of Chinese hoards mobbing the Chinese economy. Sentiment makes the concept of things getting worse at a slower rate sound like found leprechaun gold. Sentiment makes missing month horrible losses easy to ignore. Sentiment makes banks that got free government money look like cash cows instead of welfare queens that earned a few bucks interest on the free money.

Senntiment is powering the toppiness of the market indexes at this time. People would rather chase dreams than think realistically.

Who is buying right now? Even the average CNBC guest this morning pondered about the coming correction (I started turning it on a couple of hours a week). The employees were mostly rosy. I can’t imagine Joe Retail is back.

dead hobo Says:
April 16th, 2009 at 3:20 pm

S&P +15??? Oh well, been there, done that before. Not again. Must be some kind of short squeeze.

dead hobo Says:
April 16th, 2009 at 5:19 pm

C wouldn’t have foreshadowed good news if it didn’t have something up it’s sleeve, reminiscent of the GS missing month or Wells Fargo accounting tricks. The smart money scurrying to .01 money tells the story.

It’s gratifying to see the upside pressure. The real upturn will happen when anecdotal stories of easy bank credit flow from small and medium business. I haven’t heard any yet. Right now, big banks are too busy making money on trading, accounting gimmicks, and not lending. This adds nothing to the economy.