Kiss of Death Still Dancing Together ~ The Risk Averse Alert

Wednesday, July 24, 2013

Kiss of Death Still Dancing Together

"If we don't have a growing, thriving middle class, then we won't have the resources to solve a lot of these problems. We won't have the optimist--the sense of unity--we need to solve all these ... issues. Now in this effort I will look to work with Republicans, as well as Democrats, wherever I can. "... And I sincerely believe there are members of both parties who understand this moment--understand what's at stake--and I will welcome ideas from anybody, across the political spectrum. But, I will not allow gridlock, or inaction or willful indifference to get in our way. That means whatever executive authority I have to help the middle class, I'll use it. Where I can't act on my own and Congress isn't cooperating, I'll pick up the phone, I'll call CEOs, I'll call philanthropists, I'll call college presidents, I'll call labor leaders, I'll call anybody who can help and enlist them in our efforts."
President Barack Obama (Knox College, Galesburg, IL, 7/24/2013)

[Ghostbusters theme song playing in my head...]

Who you gonna call?


There you go Detroit. Get 'er done.

Of course, "wind, solar and natural gas" will not do. It has to be hydrogen. The president's remarks about  understanding the moment and "what's at stake" at least suggests, though, that beyond the rhetoric there's an inkling of recognition the United States of Make Work and Money Grab is on the verge of collapse. His claim of having "saved the auto industry," however, clearly is a lemon being squeezed so hard the pits are squeaking in Detroit. Its bankruptcy must be stopped. The feet of the incompetent leading the Fed need be put to the fire demanding proof Wall Street is not favored over Main Street. Confetti's claim to this effect last week before the House Financial Services Committee still rubs middle America the wrong way. How quickly, too, the claim was proven a bald faced lie! In only a mere matter of hours following its utterance was Detroit's bankruptcy filed. Quite the slap in the face.

It's not clear whether those among truly bankrupt enterprises in fact have juice enough to push up garbage at the bottom of the capital structure any further. Although a technical tour still supports the possibility, an imminent trip south sinking the likes of the S&P 500 to its 200-day moving average finds a floundering U.S. bond market and dollar—the kiss of death dancing together(!)—suggesting "bombs away!"

Word on the Street
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