The CNBC propaganda machine is still pumping out the deceptions and the lies. If you listen to the logic of the guests who come on CNBC trying to take parking space in the head of the retail investor, you would think that we are in a genuine recovery and that the stock market rally is sustainable. You would think that stocks are dirt cheap, and that we have plenty of time before investors move from equities into fixed income vehicles like bonds. They would have you believe that it will take another 11 months for the yield on the 10 year bond to move another 30 basis points to 4%. This, after it recently took just five days to move 30 basis points.
These educated nincompoops think we sit on the stupid bench. They think that with the 30- year bond yield the same as it was from 2001-2006, and with unemployment at a paltry 9% instead of 4%, that the economy is somehow stronger. They must be nuts to think that a rising yield indicates a stronger economy! Any student or graduate of Harvard, Princeton, or Yale must either be a complete dope or completely delusional. They should be demanding refunds for their tuition money simply for buying into the garbage that’s taught at these institutions; particularly Princeton, where Ben Ber- Nutty was the head of the economics department.
These Ivy League elitist, Wall Street gurus weren’t able to predict the dot-con bubble or the lending/ housing bubble, and they will surely miss the Quantitative Easing (QE) bubble that’s currently happening because of the belief that investors won’t move from stocks to fixed income for awhile. The current 10 year yield of 3.7% is NOT an indication that the economy is on sound footing. Rather, there is an underlying rot of inflation brewing, caused by the excessive printing of money. When the yield on the 10 year bond starts changing from a 3 handle to a 4 handle, the scales will tip toward either a major stock market correction or a full blown crash. This is because equity markets don’t like high interest rates.
The president said recently that we need to “invest” in education, (which is the code word for spending), so that companies and financial firms on Wall Street can hire the most talented and skillful workers in the world. What, are you nuts? It’s these talented, skilled workers who caused the historic foreclosures of millions of American homes, and who are the very reason that homeowners and businesses can’t get loans. Oh yeah, and they all went to Harvard, Princeton, and Yale. How did that work out for you main street?
Take a look at Harvard’s Larry Summers. He blew up Harvard’s endowment and the world economy with his derivative program, and was subsequently rewarded for it with his appointment to the White House as Obama’s economic team lead. His contribution was to pump $2.4 trillion into the economy to lower the unemployment rate. Instead, it went up. Because of Summer’s and Ber-Nutty’s monetary policies, we created only 36,000 jobs in the month of January. Another Harvard grad, Robert Rubin, blew up Citi.
I think it’s time to shut down Harvard, Yale, and Princeton. We should turn them into trade schools for the next generation, because if Larry Summers is any indication of what’s to come in this country, the last thing we need to invest in is formal education. It’s time to reinvest in good, old fashioned common sense, hard work, and family values; the very things that made our country strong, and something that we have turned our backs on. Not until the erosion of the dollar were families forced to add a second income. Because of the destruction of the dollar, it now takes two heads of the household to make the same amount of money as it used to take one. And when mom was forced into the labor market, the family unit went to hell.
It’s a strong family unit that built our nation. It’s the educated nincompoops from Harvard, Yale, and Princeton who destroyed our dollar and our economy. We now owe more than all other nations combined. Only when we return to a free market capital system instead of our current rigged market capital system, can we move forward and have a recovery. Join me weekdays at www.philsgang.com and find out “What Wall Street Doesn’t Want You to Know”!