As you know, I try to inject a little bit of wit, a little bit of sarcasm and a little bit of comedy into my reports. I have nothing witty, nothing sarcastic and nothing funny to say today. I am worried...and not just about the market. I have been bearish this whole move in spite of the nonsensical calls of a bottom and the utter craziness from the pundits with their continuous yapping that financials are cheap. How can a Citigroup (C | news | PowerRating | PR Charts ) be cheap when Citigroup doesn't even know what their numbers are?....and he isn't shy about telling you the why and what the problem comes from.
First, let's start with the news. I am afraid all my fears I have been writing about are now coming to fruition. Bernanke has no control. Paulson has no control. The White House has no control as the economy is spinning lower and inflation is spinning higher. You don't need me to tell you the evidence. It is in black and white. And as you know, I am a man of facts. All COMMODITIES are skyrocketing while our currency, our housing and our stock markets head lower. This is a toxic cocktail for all those who refuse to listen. As I told you last time, I am beside myself that Bernanke can sit there with a straight face and tell Congess and for all the world to hear...that markets are saying inflation is anchored. Just for that statement, he should be fired on the spot and sent back to economics school. Of course, we should only be that lucky. I believe Paul Volcker should come out of retirement immediately and start doing what needs to be done...and that is facing facts instead of fighting them.
..and while I never predict such things, I must say I would not be surprised if we start to see some sort of panicky selling as the market comes to the realization that there is going to be hundreds of billions more in losses for the criminal enterprises...otherwise known as banks, lenders, hedge funds, ratings services and the like.Yep. Free advice to the McCain team - grab this issue by the balls and swing it around your head. Obama has other problems right now.