In the 1-2 week ago timeframe, we mentioned in two posts that there were largely bullish headlines describing Bloomberg.com's Video Interviews. Only slightly tongue-in-cheek, Econblog Review introduced this as an easy-to-obtain contrary stock market indicator. In fact, the spate of bullish video titles marked the recent peak of the market. The headlines became more balanced and the market bottomed without "cracking". What do we see today?
Under "Editors' Video Picks", 3 are neutral/reportage; 1 is negative (more on that below).
Unfortunately for the bulls, the CEO Spotlight states: "Tata Consultancy's Ramadorai Says Citi Revenue Is Intact".
DoctoRx here. While I have no idea what exactly Mr. Ramadorai means that Citi's revenue is "intact", the headline is ridiculous and/or irrelevant on its face. Everyone who is following the matters believes that absent massive Government intervention and subsidy, Citigroup would have gone (or would shortly be going) the way of Lehman Brothers into a chaotic bankruptcy.
The last video interview is with Buckingham, apparently of Al Frank's old firm. The man pictured is described as having the following view:
"Buckingham Likes JPMorgan, BB&T, Bank of New York".
DoctoRx here: What's to like?
So overall the Bloomberg.com Video (Contrary) Indicator continues to show the financial community rallying round its own. Jesse's Cafe Americain had an quote worthy of consideration (Jan. 15 post)
"As a dog returns to its vomit, so a fool returns to his folly. " Proverbs 26:11
In any case, the one skunk at the picnic in the Bloomberg.com video interviewees is William Poole, former chief executive of the St. Louis Fed and now, inter alia, a senior adviser to Merk Investments, which runs mutual funds favoring "hard money" and in general non-dollar assets. A link to a screed by Axel Merk from the Website is found here: "Live Free or Die: Capitalism at Risk". So, Dr. Poole has his own vested interests. He says that U.S. Government aid to banks is "Out of Control".
Unlike Mr. Merk and Dr. Poole, I have no vested interests in hard assets. Essentially all my assets are denominated in U.S. dollars. I agree with Dr. Poole's general sentiments in the above regard, but I disagree that it is out of control. I think it is under control and part of a bipartisan Establishment plan. Make no mistake about it, in this regard Mr. Obama is as Establishment as it gets.
Unfortunately, the plan that is being executed flawlessly soaks you and me.
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