Thursday, July 18, 2013

The canaries are all dead.

I was going to do this post this afternoon, then scrapped the whole thing. But I've reversed myself because I just can't believe how many times lately I read people who say they don't understand what is happening in the economy. Twice today! And is scaring the holy living shit out of me.

This guy doesn't understand why gas prices are so high considering we are floating on effing oil right now. Some guy this morning said he didn't understand why gold was behaving the way it is. And Bernanke doesn't understand why people aren't spending. I'm starting to wonder if anyone understands what is happening in the economy. Which quite frankly is terrifying. These are not small time guys. These are big businesses and people who run our country.

I know most individuals don't understand what is happening. It's even hard for me to keep it straight, and I spend a lot of time at it. But, I don't run this place. Soooo...

All I know is when Google misses, you better get your security blanket. But then what do I know? I spent the whole day listening to people who think the market is just going to keep rising. I'm going to go out on a limb and say that is an impossibility. There is 0 percent chance this market doesn't correct and soon. You know wall street has one hand on the exits. And they have the playbook. You can tell by all the "accidental" data leaks.

A couple of days ago I read that HELOC's were under a ton of pressure. I didn't know people still had HELOCS! The last four years people have been in Neg equity. This has to be people who were trapped in the market from before the recession because I can't believe they've written too many HELOC's in the last few years. This is a bad sign indeed. Those people might decide they've had enough. I know one guy who is paying 7% interest. Seriously.

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