Government Predictions

[inthemoneystocks]

Today's markets are slightly higher as the volume is as light as a feather. However, today the leading names are trading lower. Apple Computer (Nasdaq:AAPL), Google (Nasdaq:GOOG), and Potash (NYSE:POT) are all negative today even as the market is positive. All of these leading stocks have had tremendous moves in 2009. These could all be leading candidates for a correction in the New Year.

2009 has had a bull run to remember by all measures. There isn't anyone who could deny that. However, I find it rather amazing that the leaders in the government were able to predict it so well. In early March I recall President Obama telling people that it looks like a good time to buy stocks. While March is often a cycle turning point he was as accurate as can be. Since that time stocks are higher by more than fifty percent and still rallying into the end of the year. My hat is off to President Obama for a great call in the markets. Recently the Treasury Secretary Tim Geithner said that the stock market will not see another double dip in 2010. After such a bold call by President Obama how can anyone dismiss this call by the Treasury Secretary?

In the 1970's and 1980's there was a late night television program hosted by a comedian named Johnny Carson. He would often do a bit where he would play a character called 'Karnak the Magnificent'. This was a character with clairvoyant powers. It is now amazing that we now have Karnak's in the White House. Where were these Karnak's in 2007, and 2008? It is simply amazing that predictions can be made by the same people who should be held responsible for the financial crisis in the first place.

Where are all the toxic assets that have been swept under the rug after the mark to market accounting changes? Is anyone talking about the huge spending deficits that this country is under? Where is all this money coming from? Without a doubt, it will have to be printed and created. The expense for this bailout must be in the TRILLIONS already. Yes, I said Trillions. The country continues to spend like a drunken sailor. This is the second straight administration to do so. The first one was not any better.

People voted for change and got more of the same. This government is borrowing and printing with reckless abandonment. While everyone is more concerned with Tiger Woods' love life than caring about Fannie Mae(NYSE:FNM) and Freddie Mac(NYSE:FRE) getting the spending cap lifted while the tax payer is singing Christmas carols with their family. Well at least we have Karnak's in the White House.


Nicholas Santiago
Chief Market Strategist