Things that make you go ..hmmm

Exhibit 1:

On Friday the 13th of March 2009, the Chinese Premier Wen Jibao said:

"President Obama and his new government have adopted a series of measures to deal with the financial crisis. We have expectations as to the effects of these measures. We have lent a huge amount of money to the U.S. Of course we are concerned about the safety of our assets. To be honest, I am definitely a little worried."

Exhibit 2:

On Sunday the 15th of March 2009, the Chairman of the US Federal Reserve's Board of Governor's Ben Bernanke  does the first national interview a Federal Reserve chairman has ever done in 96 years. He says everything is fine and we’ll be back to business as usual by the end of the year. 

Exhibit 3:

On Wednesday the 18th of March 2009, the US Federal Reserve announces the nuclear option that the Fed will now directly buy the long end of the US Treasury Market. The funds to make these purchases are through an accounting entry a.k.a from "thin air" and other such uncharitable locations.

This announcement causes the 3rd biggest one-day cecline on the US dollar

This of course slices through some key technical levels - including a rising trend-line from December 2008 and the 50 day MA.

It does seem obvious that the US Fed is attempting to replace China as the world's buyer of US Treasuries, which is having the effect of ditching the US $.

(Graphs and Table from Bespoke)

"...profit and earning ratios are starting to get to the point where buying stocks is a potentially good deal.."

The Messiah a.k.a Barrack H. Obama had this to say at a press conference in the Oval Office yesterday

"What you're now seeing is ... profit and earning ratios are starting to get to the point where buying stocks is a potentially good deal if you've got a long-term perspective on it,"

Here are some other quotes from politicos in the years past:

September 1929
"There is no cause to worry. The high tide of prosperity will continue." -- Andrew W. Mellon, Secretary of the Treasury.

December 5, 1929
"The Government's business is in sound condition." -- Andrew W. Mellon, Secretary of the Treasury

January 13, 1930
"Reports to the Department of Commerce indicate that business is in a satisfactory condition, Secretary Lamont said today."

January 21, 1930
"Definite signs that business and industry have turned the corner from the temporary period of emergency that followed deflation of the speculative market were seen today by President Hoover. The President said the reports to the Cabinet showed the tide of employment had changed in the right direction." - News dispatch from Washington.

May 1, 1930
"While the crash only took place six months ago, I am convinced we have now passed the worst and with continued unity of effort we shall rapidly recover. There is one certainty of the future of a people of the resources, intelligence and character of the people of the United States - that is, prosperity." - President Hoover

June 29, 1930
"The worst is over without a doubt." - James J. Davis, Secretary of Labor.

September 12, 1930
"We have hit bottom and are on the upswing." - James J. Davis, Secretary of Labor.

June 9, 1931
"The depression has ended." - Dr. Julius Klein, Assistant Secretary of Commerce.

The Great Depression v1.0 of course did not end until the outbreak of the second world war. In the 10 years between 1929 and 1939 the political types came out with similar utterances every 3-6 months. It seems the Great Depression Mark II is following the same script.

Anybody who bases an investment or trading decision on the assurances of a politician deserves to have his capital taken away from him.