Financial Sense Blog

Corporatocracy: A government that serves the interest of, and may de facto be run by corporations. According to the documentary, "The Corporation" if a shrink analyzed a corporation the way a shrink would analyze a patient then a corporation would be classified as sociopathic. If this is correct then it basically implies that we have a government run by sociopaths. If the good of corporation isn't the same as the good of the people --- then we are screwed.

The Other Road To Hell: I'd add to the minority voice to the chorus already singing the road to Hell song. The one that says that it is paved with deficits and inflation wil come about as the direct result of a currency crisis.

Charts on the probability of recession, taxation, and market stress.

The G-8 & G-20 meetings are scheduled for this weekend and the press and observers are disappointed before they have even begun. Division between the U.S. approach to growth and sovereign debt containment and repayment and the European approach should be added to fears that sovereign debt cut backs will not be achieved in the end.

Massive, unsustainable government debt—it's everywhere. Especially in America. At some point, will the world begin to lose confidence in America's growing debt? Will interest rates then skyrocket? Will a Greek-style crisis in U.S. Government bonds then ensue? Is there any way out?

Ever since the rally out of the March 2009 low began, I have maintained that it has been a bear market rally. All the while, the politicians think that their printing spree, bailout plans and stimulus packages have put a bottom in the economy. I continue to hear the talking heads on "CNBS" cheering on the public, and in their eyes all they can see is the so-called "double dip" recession.

The final shape of the Financial Regulations has now been formalized. The banks are heaving a sigh of relief, as stiff prohibitions are weakened. Other observers are worried as, "many of the measures that offered the greatest chances to fundamentally reshape how the Street conducts business have been struck out, weakened, or rendered irrelevant."

Just the thought of another serious market correction so soon is unbearable for many. The typical advice is to buy 'defensive' stocks, so losses will be smaller. But for those willing to be pro-active, there are holdings designed to make profits from market corrections.

At first glance, no two individuals could seem more different. The Doctor, middle-aged and balding, could be the very archetype of the college professor. The Dealman is young with a full head of well-styled hair: more than a few people have compared his looks to Elvis in his prime.

This brings us to the present and begs the question of what rules should we be using now? On the chart below, we can see that the last 50/200-EMA crossover generated a long-term buy signal on 8/11/2009, so in the broadest context bull market rules apply.