Tuesday, July 14, 2009

Analyst's Bearish View of the Economy Helps Spark Large Stock Market Rally

Please read the snippet below and then question whether the "stimulus" is primarily about enriching the Merchants of Debt, who have cooperated (conspired?) with the Fed and the Feds to eliminate most competition.

Meredith Whitney Bullish On Goldman,Sees 2Q Above Views
By Ed Welsch NEW YORK (Dow Jones)--

Goldman Sachs Group Inc. (GS) will benefit from being a key player in a "tsunami of debt issuance" by governments as they try to fill gaps in underfunded budgets, financial analyst Meredith Whitney said Monday in an upgrade of Goldman to "buy." . . .

A bullish call from Whitney is rare; she gained renown during the financial crisis for initially unpopular bearish calls on the stocks of large banks that ultimately proved to be correct.

However, Whitney said her bullish view of Goldman is rooted in her overall bearish outlook for the U.S. economy and other U.S. financial companies. While Goldman has made most of its money in the past through a focus on equity markets, Whitney said during the next two years the firm will shift focus to the government debt markets, facilitating new issuance from local, state, federal and sovereign governments as they try to raise money to fill budget gaps. (Emph. added)

So strange is the stock market that these emanations from the digital pen of Ms. Whitney helped stock prices surge upwards Monday. Go figure . . .

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