This and the unbelievably bad bond auction this week, which was highly under-reported are clear signs we are in a severe recession unlike any we've seen, to be expanding into a full blown, knock down, drag out depression. I could list another 500 reasons why its heading this way, but the clear desperation signs of our politicians, and the pyschology behind folks desperation in trading in so called old pieces of junk, for even larger highly depreciating debt loads, are not at all the foundations of a recovery.
folks this current rally is going to be a nasty one, sucking in every veteran who really thinks he knows it all, and the proverbial ******** will hit a massive turbocharged exhaust fan, when folks least expect it.
If had the insights into how GS is positioning currently, you'd likely be chitting your pants.
I'm not suggesting I do directly, but the signs seem pretty clear to me given their connections and history. How people are missing this, and how the media is reporting is unfathomable to me.
This unfettered or faux cautious happy talk is just incredible to witness... in real time.
By Jim Jelter, MarketWatch
SAN FRANCISCO (MarketWatch) - A quick review of second-quarter corporate report cards so far this season shows a growing number of companies willing to venture - on the record -- that they've probably seen the worst of the Great Recession.
That doesn't mean they see a big rebound in the months ahead. (total Bs caution statement - people are all closet bulls here) . Some do, many don't. (more bs) About the closest Corporate America comes to consensus at this point is that the economy has stabilized. But that hardly means things are truly on the mend. (on the mend ??? try not even close, the next leg down will make people wish for what we have now like it was the roaring 90's)
"While we would all like to say that the economy is improving, we've really seen simply stabilization," Greg Hayes, United Technologies' chief financial officer told investors on a post-earnings conference call.
United Technologies /quotes/comstock/13*!utx/quotes/nls/utx (UTX 54.47, +0.24, +0.44%) , a Dow 30 company, is a classic industrial conglomerate, with its hands in markets ranging from helicopters to home heaters. So it's in a better position than most to provide a panoramic snapshot of the economy.
"Consumer confidence does show some indication of improvement, but the U.S. housing starts outlook is more or less the same we saw in March and the outlook for commercial construction and aerospace traffic are somewhat worse," Hayes added.
Overly pessimistic? Perhaps. Or maybe just prudent. Some 329 companies or 66% of the Standard & Poor's 500 have reported earnings for the quarter so far. The overall profit decline for these companies is 27%, which is pretty steep. But considering forecasts heading into earnings season were for a 36% drop, many see reason for hope. The latest data from Washington also tends to back those who see light at the end of the tunnel.
On Friday, the Commerce Department reported the economy contracted at an annual pace of 1% from April through June, less than had been feared and a huge improvement over the 6.4% decline seen in the first three months of the year. See full story.
The Federal Reserve Bank's updated Beige Book, which takes the temperature of the central bank's 12 regions, also gave businesses reason to be hopeful about the future.
While the Fed found both banks and consumers are still reluctant to part with their money, and although parts of the country continue to see more people falling behind on their mortgages, the Beige Book also claimed the recession is easing its grip. And Fed Chairman Ben Bernanke went out on a limb this week, publicly predicting that the economy will be growing again by the end of the year.
