That's It Then

I note Jim Cramer rang the bell to open the New York Stock Exchange today to mark 10 years of his Mad Money segment on CNBC. 

I strongly suspect he may be ringing the bell on the market top too. I would find some symmetry there.

After all, it was partly his teenage histrionics that added pressure on the "something must be done camp," that has driven the market to these absurd QE driven heights. "My people have played this game for 25 years...... they are losing their jobs" OK Jim...... your friends got bailed out. Where has that left the rest of the voters in your country and the lead that its given to other central banks intent on mortgaging future generations so your friends can upgrade their yachts? In fact Jim, real household income in the US remains 4% lower than it was pre crisis yet debt is higher, all $8tr of it in fact in the US, investment in infrastructure, R&D and business are lower yet a towering house of cards dependant on issuing cheap debt to buy back equity is alone sustaining US equity markets and we can trace its origins all the way back to those who were screaming like little girls with their fingers trapped in car doors who thought their toys were being taken away...

Housing Timebomb

Max Keiser always sounds as if he's pumped up with a mixture of 17lbs of blue smarties and three pipes of crystal meth. He does though, in amongst the ranty delivery, have some salient points to make. He is right in large part about the economic distortions of the housing market, mostly engineered for political gain, (which is about to backfire on the Coalition at just the wrong time before the election), and he is accurate in some of his observations about the banking sector, particularly in the "mark to myth," problem with assets and a dependency on government subsidy be it direct or indirect. In short, many of the distortions which created the crisis five years ago remain unresolved because the political and moral courage, to do so is absent. 

I am a very right wing individual but by the Gods in Heaven these inept and self interested fools in Westminster are day by day, turning me into a raging socialist. Why, because to use the old phrase they are socialising losses but privatising the upside for the benefit of a microcosm of society. In doing so, they are shaming the City, (many in its ranks are arch critics of policy and have been for many years), and mortgaging future generations by spending today even more of what we don't have.

Anyway, I'll leave it there for the moment before I become completely unglued. Keisers rant is worth a listen to, especially the last few minutes.