Sober up

Goldman Sachs

Risk appetite turned on for the liars of greed via corruptible goverment intervention. US Tax payer free money has returned this investment bank to profit. So says Meridith Whitney. I would add, there has gotta be a credit crunch 2 brewing at some point and I hope this fucking bank disappears off the planet (they let Lehman go and gave Goldman Sachs taxpayer money to take risks again...an insult to the freemarkets). Yeah trade short term with them, detach emotion; then when it all goes south again short sell.

China

Scary. Why? Because when the economic de-coupling argument was getting thrown around pre global recession (US sinks, rest of the world connects to Asia's boom - this didn't happen of course) everyone was looking for a economic savior. This time it's the same, but with the Rio Tinto fiasco and China's desperation to continue stockpiling commodities could point to a few things. 1. They will use their stockpiles as barging chips (force prices down by dumping surplus raw materials onto the markets) 2. They (Chinese goverment) are worried about internal turmoil, their stimulus should be flushed out by year end. 6 Months into 2009 (on the bank of their massive stimulus) their industrial output boomed, banks made risky loans, people bought cars. All on the fact direct foreign investment tanked, export markets have almost completed collapsed, overcapacity and a straining middle class clinging onto employment. China is getting desperate. As a side note: It has been said that if Israel was foolish enough to bomb Iran and the US forced Iran to blockade the Straits of Hormuz. China would send 10 warships to the Straits of Hornuz the same day to clear the shipping lines and get the oil pumped back out.

Same now with other commodities, best not play hardball

US Bonds tank

Long term spreads up, inflation here and hyperinflation on it's way. Tax payers gonna get in between the eyeball. A trillion plus US deficit, it's a fucking horror story. As long as the US consumers reign in spending and everything else is expensive, Asia's market will continue to tank. Simple economic equation.

Collapse of the entire system.

Very possible, in the sense look at history. Any government that has propped up, contributed and eventually becomes a corrupt debt ridden monster, collapses in a heap. Since we had a global boom and global bust and a global bailout all done via an influence of state control (economically) which echoes history of failed socialism/communism support of asset prices. History only reveals that dictatorship orientated countries with either socialism or another form of fascism have eventual collapsed and spectacularly. We all could be heading this way if the government continues it's support of the whole global ecomomy. Our economic model was never supposed to be supported by goverment, it was a boom/bust cycle that got rid of the undergrowth and weak/corruptible/badly managed companies and businesses - with the competent remaining.