Stocks Rally With Wall Street Banks as King of the Hill

[CrackSmokeRepublican]

Stocks Rally With Wall Street Banks as King of the Hill
 :x

Meredith Whitney (Jewish Scam Helper NY Mouthpiece) made a bull call on Goldman, and the stock market rallied as a result.

There are some important qualifiers in this that the markets seem to be ignoring.

Goldman is positioned as more of a 'one-off' in her forecast, which remains decidedly gloomy for the overall economy, with unemployment as it is under reported by the BLS rising to 13%.

She believes that Goldman will benefit from being in the position to take fees and profits from the heavy government debt issuance to come in the US, especially since it was able to eliminate some long term rivals in Bear Stearns and Lehman Brothers.

Ironically, a richer Goldman does little or nothing for the overall economy since the company pays out about half its profits in bonuses to employees. There is some trickle down to the real economy as they buy their luxury cars, place their children in the finest private schools, and make huge contributions to key politicians, but not much else.

Goldman is not a commercial bank. It has taken on that name to tap into the Government funds, and despite their noises about paying back their TARP, they are huge beneficiaries of the ongoing bailout of AIG with their 100% payouts on Credit Default Swaps.

So, the people give their tax money to Goldman, and in turn a little of it trickles back to those working in the luxury industries, perhaps as servants to great households, and certainly as politicians managing the outlays of public monies to Wall Street.

The debasement of the currency is going to hit the middle class particularly hard, since the monetary inflation is being so heavily targeted to the wealthy few, while little or no quality jobs creation is stimulated. And it is the middle class that is paying for this, in more ways than one.

And economists call gold a barbarous relic.

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