Sunday, May 15, 2005

US Financial Media Spin

Refering to "parliamentary-democratic parties" outside of Germany, Geobbels said that "The hunt for popularity usually means nothing other than concealing the truth and speaking nonsense."
Goebbels at Nuremberg — 1934

To Goebbels this is the exact opposite of what in his mind a successful government should do. Not that his idea of a successful government is my cup of tea. But this is exactly what is happening in the US. On Thursday a talking head analyst on Bloomberg TV actually said that in the US economy “automobiles do not count.” That is like standing outside on a bright sunny day at high noon and declaring it midnight.

This week Federal Reserve Governor Poole said that there has been a “dramatic” improvement in US economic activity. Then why did notes and bonds make new recent highs (expecting less demand for money, less economic activity)? And that is despite them breaking their 6 month long recent uptrend lines. They broke their uptrend lines and still ended up making new recent highs. Strange. To me notes and bonds should be fearing a devaluing USD but that's not what is happening.

Greenspan made the "USD has bottomed" statement, again. Greenspan, a guy who during his private practice years developed an atrocious record for predicting what the economy and inflation would do. Hey, sounds like a candidate to head the Fed. Yup, they made him head of the Fed. They needed a guy that has no shame.

Things must be pretty bad out there when these guys are reduced to making simple minded stupid dumb lies.

What's up with GS? Its shares are taking a dive. A 12 month Goldman Sachs chart
What? Some otc derivative bombs been set to ticking?

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