Obaba speech loses shine; stocks tumble

Obama Speech Effect has been shrugged off by world market. It lasted a total of 4-5 hours in the world. Then stocks plunged worldwide.

Since Speculative Securities trade is the most cherished and weighed profession, January results will be a dampener for growth of global economy (if any such thing exists). As the hawks of Davos are contemplating, whether there will be a double dip in the recession, the economies all across the globe are heading towards the second dip of the great recession ( We will wait till 2011 for the Depression coinage). This July at least 7 out of G-20s will be back in recession (based on Q2 GDP) and another 8 will plunge by Q3 results.

Bad news, indeed; But if we continue to re-select Dr. Dangerous Bernanke over and over again, what else would you expect. One who never stopped the easy credit for stupid housing, bailed out his super buddy banks and insurance companies and yes; Gave us the “Too big to fail” connotation to big business.

There would be a barrage of JVs launched by Davos-returnee crooks, beware and stay out of it. There would be a spate of Merger & acquisitions by Davos-returnees as well, mostly across distant geographies. It is the task of the governments to ensure that both local consumer interest and local workforce interests are given primary importance. Governments must discourage further job-losses and place punitive strictures in place to prevent such efforts by big business.

Recovery is on, but only for the SUPER-RICH

Most Wall Street Banks will be reporting in green for last quarter only because speculation and insider trading has lifted the stock markets to artificial highs. If you calculated the stocks and derivatives at an average price of last 3 quarters, they will end up in red.

Why the recovery isn't actually as impressive as finance experts says, Lets investigate:

1. The manufacturing sectors came out from their previous loss making time, only by slashing workforce and reducing prices. The retail segment is doing the same. This means consumer has less amount to spend (rather the theory of Americans have started saving huge amount in their socks or under their pillow).

2. So the so called "Recovered Economy" has a far less consumer base to start with. With job losses continuing and people who are without a job for 12 months no longer counted on neither as Jobless nor as Employed, there is no immediate chance of major expansion in that base. The consumer confidence data and retail sales figure shows that.

3. Banks have become smarter since Enron, they don't cook up their books directly, instead they influence market to inflate their asset class. In old days, doing this in stock market could have landed one jail for Insider Trading.

Be careful and take Analysts upgrade news with a pinch of salt. Recovery is on, but only for the super-rich ( The too big to fail category), too bad if you are not in it.

Read roubini's warning on Next Bubble at http://www.rgemonitor.com/roubini-monitor/257791/

Are we doing well or not?:The lie of the Recovery

Are we doing well or not? These are merely matters in human perception. We indulge in statistical studies, check econometric indices and ultimately depend on third party opinions about our economy, our society and our lives.

Most often or not, Media and Government plays a crucial part. Take the example of the current recovery which started with leaking of Citibank and BoA CEO's optimistic internal memo about operational profits.

Since then, Gamblers has taken the center-stage in the financial world. All stock markets rebounded to new highs as if a new energy source has been invented or a mineral-rich highly fertile continent has been discovered. What boasted the market is that the rich has found ways and means to corrupt each and every-one of G-20 governments.

The rich may be from Manhattan, Monaco or Mumbai, they were pleasantly surprised to find that all politicians worldwide want to power and wealth, not for their country, not for the society they promised to serve; but for themselves.

So US,Western Europe, Russia, India & China reels under severe unemployment. Brazil is the only exception, because its president is a rare exception.

While US and Western Europe gives a technically correct (not morally correct or real) data on unemployment, India & China gives none what to ever. Money keeps floating to and fro between Tax heavens and Stock or commodity markets. Nobel Laureate Paul Krugman call for Simplified products and services went to deaf ears. Derivatives is still the king and this time around the complexity of the lie is much more. This time the governments are hand in glove with these economic terrorists (who run these too big to fail organizations).

From October 2009, a bunch of godforsaken analysts will start jumping up and down (or they will lose their jobs) singing joy in YoY figures, please remember that the base on which these matrices/ parameters are calculated were plummeting same time last year. The First case in Indian IIP (Index of industrial production) figures of August 2009. Every analyst conveniently forgot that IIP blipped August, last year. And the stock market soared.

Economic Recovery means improvement of life of all, by all and for all. And that my dear friend is not the case now.