Mr. Market welcomed Barack Obama to the White House with a 2 x 4 to the face. You think you're in charge, Mr. President? Think again. You will learn a lesson I have taught many of your predecessors in the past. While you may now be the most powerful man on earth, I can get your knees so wobbly they will knock together in just one trading day, sir.
Mr. Market's lack of graciousness, in stark contrast to the hospitality shown by George W. and Laura certainly put a damper on the festivities. More than one message to Irish Lightning had a gleeful reference to my prediction of an Obama Rally. As the bell rang yesterday to close the session, I caught a glimpse of Mr. Market, standing back in the distance, pointing at me, laughing, enjoying the humiliation he put into motion that day.
At Yesterday's ceremony, the concept of a new Depression was doing all it could to elbow its way to the front table where the new Administration was being discussed.
But as Mr. Market was laughing at my expense, pointing at me through the crowd of traders on the floor of NYSE, thinking I would slink away in embarrassment, unplug the lightning bolt and sit helpless as the US and world economies unravel into a period of chaos followed by a wealth destruction so severe that it lends to social unrest, I was looking over his shoulder and what I saw was a light.
A bright light my friends. Possibly an LED light from CREE which reported big earnings last night and may do great in the future as we finally say good bye to one of the world's least effective heating system....the incandescent light bulb.
And I soon realize that light was on a train and that train was bound for glory. For a new decade of American prosperity like we have not seen since the 1980s. And I know that in the near future, Mr. Market is going to see that light too and being his schizophrenic, peripatetic self, he won't allow himself to get run over. Oh, no sir. Mr. Market is going to jump on that train and conduct it gloriously towards a new bull market.
And soon people are going to realize, the end is not nigh. Even though everyone seems to be predicting it. There is a tidal wave of stimulus and money that has been unleashed and will soon reach our stock markets to wash away the mega bears who have been mauling everyone for the past 18 months.
That wave of water will be the last wave of cleansing we need as we rebuild our nation's confidence and economy. A new banking industry will be built. Legacy banks being replaced with smaller more entrepreneurial firms. Real estate will bottom in a manner that shocks the highly paid analysts on Wall Street and as deflation is slayed, inflation will return and real estate prices will go up.
We are in a period of creative destruction and it is painful. But soon the bad assets will be off the bank balance sheets in an aggregator bank. We will actually get a write up by August. Lending will resume again. You can't put the world's second oldest profession out of business forever. And as people realize we are going to be okay, our nation's confidence will start to come back. We will start looking at all the good things we have here in America.
And, as we have done for the past two centuries, America will be the beacon of light and hope that leads us from the World from these dark times to a better day.
Here's to better times. They are coming sooner than we realize. America will rise like a phoenix to relight the spirit of the World.
unless we are attacked and after listening to Barak for the past 48 hours if I was a terrorist I would feel as if I had won and I would have a new resolve to finish what I started - McCain should have never chosen Palin.
Posted by: attyKT | January 22, 2009 at 02:16 PM