From market curmudgeon Bill King, who tells it like it is:
"Ironically, or rather idiotically, traders poured into stocks on Blankfein’s assertion that Goldie is doing well because Goldie is short mortgage-backed securities and CDOs. Blankfein believes the financial situation will worsen: “…many institutions don’t understand what the credit crunch is going to do to earnings and their balance sheets.”
So what we have is a huge rally because Goldie will profit from the US economy and financial system going to hell. And people pay fortunes to go to Ivy League schools and B-schools to learn how to play the new economy!?!?! Apparently a critical mass of traders believes that not only what is good for Goldman is good for America but as long as Goldman profits everything else is immaterial…
Wal-Mart admits that customer visits declined in Q3; but food sales increased 5.3% and pharmacy sales jumped 7.9%. Thank God for food & drug inflation that is not recorded in official inflation!
Recession, inflation, dollar collapse, financial system implosion – no problemo, Goldie is making money so pour into stocks! And let’s be merry and jiggy now because Wal-Mart is booking Christmas sales weeks before Thanksgiving and food inflation is virulent enough to significantly boost revenue!"
Thanks, Bill . . .