Stress Test Revealed

Does anyone out there really believe that the government is going to be truthful when the results of the stress tests are in? I certainly do not. This is nothing more than a mirage designed to appease the stock market. Those in power know that the media focuses upon large shifts in the market. While the politicians will try to separate Wall Street from Main Street when it serves them, a rising stock market protects all of them.

Many fail to understand the market is not the economy. When they see the headlines of the market crashing, everyone is aware of how hard things are. Those in power have to answer for the results. This is something they want to avoid.

At this moment, I believe Bernake and Geithner both know that the majority of the banks are insolvent. Simply, that means they need more money, a lot more. They are broke. The stress tests were sold as a way to 'grade' the banks. This is not true. They were put together to give the market confidence in these institutions. Sadly, this is another house of cards being erected.

The banks just received their first wave of bad news. Residential real estate is only 1/3 of the equation. We are already seeing the bubble in commercial real estate breaking. And, credit card defaults are on the rise. To quote the famous song: "We have only just begun".

The economy is in shambles. People are looking for the mustard seeds and green spouts. Do not believe any of them. This market is going to crash in the next few months. We got a boost because many of the companies "exceeded expectations" on their earnings. Big deal. Those expectations were so low that it is almost impossible not to meet them. Seriously, can anyone say that a Fortune 500 company's revenues being off 58% is good news? No. It is an abysmal time to be in business right now.

We invested trillions to prevent a credit freeze. Unfortunately, money aside, that is exactly what we have. Nobody is lending. The banks are holding onto the TARP money like a child holds a toy on Christmas morning. There is nothing being lend anywhere. And, if some of the ideas the government is proposing go through, the banks will tighten up even further. Credit card limits are already being reduced substantially.

I believe that on May 4th, the Feds will tell us that all the banks passed with a disclaimer that a few need to raise additional capital. The market will probably jump up another 150-200 points on this news. I, for one, will not buy a word of it. Eventually, the market corrects its misconceptions. In three months, these same institutions will have to report again. I do not believe they will be able to pull the same voodoo accounting they did this time. The proof will eventually come out just like it did last fall. I am here telling you the game is already up. The average person is just not in on it.

I would make my future plans accordingly.

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15.6% Unemployment?

What would happen if you woke up tomorrow and read that unemployment soared to 15.6%? How do you think the stock market would react to that? I would surmise that we would have a total collapse.

For years, I mentioned how we cannot believe any of the statistics coming from the government. I always pointed to the inflation stats as proof: the government only charts "core" inflation which excludes food or energy prices. How can that be? Aren't these the two things that every family needs. The run up in oil prices last summer showed how families are affected even when "inflation" is contained.

Now, the vital statistic is the unemployment figure. This is the number believed to reflect the state of the economy. With last weeks announcement of March job loses, we are not at 8.5% unemployment. Or are we? Remember, we cannot believe the government's statistics.

There is another statistic which presently sits at a much higher number: 15.6%. It is the underemployment figure. The national unemployment rates only account for those who are filing or receiving unemployment benefits. Part time workers are excluded from those figures. So too are those who dont fit the criteria to file for unemployment.

Here is an article which spells out the true situation.

As you can see, there are a lot more people who are out of work than reported by the government. This articles explains how some of those in the 15.6% category are underemployed by working part time. Yet, there are also those out of work who do not receive benefits. How many are these? Do they add 1% to the unemployment figure? 2%? 4%? We do not know.

What we do know is there are a lot more people out of work than reported by the government. One sector rarely mentioned is the small business owner who closes up shop. This person is usually ineligible for unemployment compensation. Therefore, every small shop that closed up in the last year most likely put someone out of work. In my town, there are dozens of places which I know about that are no longer there. Where did all these people go? Some might have found other jobs. However, my guess is that most did not.

The point that I am making is that the unemployment situation is much worse than the government is letting on. True unemployment is already hovering around 10% (perhaps greater). When coupled with those who took a cut in hours thus becoming part time, we see that number jump to 15.6%. This is the number that the government ought to track. Yet those in charge do not want it out how bad things really are.

Do not believe the government. Those who are in charge are corrupt and will lie to protect their interests. The fact that the employment situation is twice as bad as they let on is an indication that they care little for the American people. Someday people might realize the government is their enemy.

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A Proven Solution

We are in a recession (or is it a depression) and Obama is proposing raising tax on the "rich". First, if anyone believes that this will be relegated only to the wealthy, then I have a bridge in Brooklyn to sell you. Secondly, when in history was it shown that raising taxes got us out of a bad economy.

Here is a clue: to get out of a downturn in spending, someone needs to start spending. That usually falls to the people with money. Since the poor have nothing and, now, the middle class is tapped out, that leaves the rich. They are the only ones with any money left. Yet, Obama feels it best to grow the government by taxing these people more.

Obama is suddenly concerned about the deficit. We know what this month's revelation is. Last month, Obama thought the deficit irrelevant when he was passing the biggest spending bill in U.S. history. Of course, now by being a budget hawk, Obama is able to implement more plans to redistribute the wealth. His social engineering platform is taking shape.

What do you call someone who sounds middle of the road yet is a flaming leftist? Barack Obama. Claims of socialism are not unwarranted. This guy is a lefty in the total sense of the word. And America fell for it. Well, I cannot blame the stupidity of the American people on Obama. They got that way all on their own.

Everyday we see the stupidity of this man. Raising taxes on the only set of people who have any money during the worst economic crisis in decades. That is stupidity at its finest. You talk a good game yet are proving that you are totally full of crap. Go back to Chicago you moron.

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