Moment of Confusion For Bulls ....El Ranto(ZT)

WSBear

Moment of Confusion For Bulls ....El Ranto
CivilBear - Wed, Jul 18, 2007 - 12:26 PM

Every time there's been good economic news, they've said: "We're going to the moon, Alice!"

Every time there's been BAD economic news, they've said: "The Fed is going to cut rates, so we're going to the moon, Alice!"

Well,the mortgage mess is providing plenty of bad news today, especially forBear Sterns (hedge fund wiped out) and CIT Group (blowing chunks fromhome loan exposure). Plus, Burnedwanky said today that the housing messis worse than he thought and that he was still concerned aboutinflation (even though he and his cronies downplay the REAL inflationrate, which is likely in the double digits in terms of "needs.")

So,with this bad freakin' news, why aren't the bulls celebrating,proclaiming that a Fed rate cut is right around the corner, thenjamming stocks higher?

Might this be a rare moment of reality?

Shouldn'tthe bulls still be chortling up their french cuffs, knowing that theanalysts have once again low-balled their earnings estimates, knowingthat with proper pro forma bullcrap, even the worst publicly tradedoutfit can beat by a penny?

Or is this an actual turningpoint, in which the bulls suddenly realize that the markets areoverbought and that stocks are overvalued?

Might the bulls also be coming to grips with those tacky little details like:

Record household debt,

The longest period of negative savings since the Great Depression,

The subprime mortgage crisis,

The 2.5 million foreclosures expected this year,

The end of the mortgage refi mania,

The housing bubble implosion picking up steam,

The humungous trade deficit,

The huge current account deficit,

The mammoth REAL budget deficit,

The $43 trillion in U.S. government debt,

The record credit card debt,

The record mortgage debt,

The record margin debt,

The slowing economy,

The near-record energy prices,

The dead airline sector,

The comatose auto sector,

The death throes of the housing sector,

The fact that manufacturing only represents 9% of the U.S. economy,

The worsening retail sales,

The consumer hitting the debt wall,

The Iraq quagmire,

The health care crisis, with almost 50 million Americans with no medical coverage,

The double-digit price inflation for needs, including food, health care, rents, insurance, energy, etc.

The ongoing downturn of the greenback,

The record underfunding of pensions,

50 percent of Americans living paycheck to paycheck,

The absence of corporate governance,

The record disparity between the rich and poor.