Remember this dummy – Jean-Claude Trichet

There are many reasons why the world economy can’t grow but this one takes the cake.

First Jean-Claude Trichet chastizes Ben Bernanke/Tim Geithner for the TARP program, i.e. loaning Banks trillions to keep them afloat so they don’t run out of money.  Then he chastizes Ben again, and this time in public for QE I and QE II.  Then he raised the interest rate in Euro – not once but twice.  The boogey-man inflation was the reason!!!  When economy is fragile and there is growth is flat and not increasing, you don’t go raising rates.

This dummy’s reason for raising rates is to stop the commodity prices increasing which results in inflation rising as in China & India.  What he failed to realize is they have GDP growth rates of higher than 7%. Except for Germany, the rest of Euro was making it about 2% GDP.  The other reason commodity prices were going higher is because the US$ was going down – because of QE I and QE II.  He didn’t get the picture. Surprising he is head of the ECB.

Then there was this fiasco of stress-test of the banks -loosey-goosey and so now we have Dexia Bank about to go under.  Stringent stress-test of US Banks is helping these banks now.  Of course the Canadian Banks are solid because of regulation (now the Republicans don’t like any requlation like Dodd-Frank – another bunch of dumb-asses). Euro banks loaned money to the Greeks thinking it will all be safe but when faced with defaults – the wells of many banks are running dry. Global banks are not sure which Euro banks could be in trouble so they do not want to loan money in case these banks could go under.

Now Euro has to do TARP to ensure these Euro banks don’t go under.  So Euro has to print alot of money to ensure banks don’t go Lehman Brothers and cause another Financial Crisis.

They should have let Greece default and kicked them out of the Euro long time ago.  These dumb-asses were living of the hog, living off government pay-cheques and not wanting to pay any taxes. Fools living in fools paradise.  Whatever happened to the land of Aristotle and Plato and of course Alexander the Great!!!

The Europeans keepng Greece out of sentimentality for preserving the European Union.  Why allow fools to party all day and night in your house when you have to go to work hard and earn a living.  I could go more in detail but that may require many pages. Since JCT is the head of the ECB – this arrogant SOB should be chastized first!

Trying to give you a condensed version of everything that is going on.  Got to understand some of this for investing but don’t let only this be your guide.  Look at the charts to take away the noise so there is objectivity in decision making.  What we like is Greece to default orderly, i.e. contagion kept to Greece and not impact the Euro Banks which impact the global financial market.  So trading only – but if you have cash – accumulate high yielding stocks that have gone so cheap that the yield is much higher than savings or bonds or treasuries.

Happy Trading