Yesterday I wrote: “In all possibilities, we shall see the debt deal early next week, by the 27th of July at the latest.”
And today Bloomberg said: ““Over this weekend Congress will forge a responsible path forward,” Boehner, an Ohio Republican, said in a statement after the White House meeting. “House and Senate leaders will be working to find a bipartisan solution to significantly reduce Washington spending and preserve the full faith and credit of the United States
More from Bloomberg: “Boehner told Republican lawmakers yesterday he would need to introduce legislation by July 27, one lawmaker said; to ensure both chambers could enact it under their regular procedures before Aug. 2, when the Treasury has projected it will exhaust its legal borrowing authority.
Senate Republican leader Mitch McConnell of Kentucky said top lawmakers are “committed” to preventing a U.S. default.”
Now I am wondering, does Mr. Boehner read my blog? Otherwise how did he zero in on 27th July? Or am I turning psychic? I am surprised! (Just kidding).
I also said: “In any case, they won’t let the top 0.01% suffer any loss on their investments but all action will of course be done in the name of the ordinary Americans!”
And sure enough : “House Speaker John Boehner told Republican lawmakers they need to provide a positive signal on a plan to avert a U.S. default before Asian financial markets open tomorrow”
( Bloomberg)
And the President said:” It’s very important that the leadership understands that Wall Street will be opening on Monday, and we’d better have some answers during the course of the next several days,”
I really did not need any vindication of my cynicism!
Please watch the following interview of Michael Hudson:
You see, once you understand how the great minds work, what are the relationship between the oligarchy and its minions in power, it is not really difficult to forecast the market movement. You do not need waves or any other voodoo technique. All is needed is simple common sense and an understanding of few leading indicators. The COT report helps in identifying the movement of serious money and analysis of market sentiments confirm the coming move. No need to pay money to ilk of Nenner, Prechter or any other forecasters.
Make no mistake; we are this much closer to the mother of all shorts. 2008 will feel like movie trailer. But we are not there yet. The Boyzs will 1st take us to the garden path. In the coming month they will present the most beautiful scenario of growth and prosperity. There will be statements of hard lessons learned and how all ideologies are now going to work together to make the” American Dream” come true. “Change you can believe in”. The stock markets in all probability will reach new highs. And when the guards are down, the magic will be extinguished in a flash.
Should we dance with the wolves? That depends on our individual risk tolerance level. But trading without any bias will help. I see millions who are convinced that the market will fall tomorrow and they are always looking for the top, placing their short bets, only to lose it time and again.
Be nimble, be cautious and above all be a cynic.
