29 JUN 2011, Wednesday (AM)

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• Hmmm...how's about $1 in tax hikes per every $2 in spending cuts???  Seems like a win-win to me.
• But to do this through tax hikes alone is COMPLETE INSANITY!!!
• That just gives more money to the politicians so they can pay off their cronies and fund stupid pet projects just like they always have in the past...AND that is what has gotten us here in this jam.  
• The cycle must be broken!
• Market was still in the penalty box as of yesterday.  Over night it appears to have broken out to the upside but is short term extended.  Interesting how this all happens just before Greece votes on its new bailout AND during the 4th of July weekend lead up since Da Boyz will be heading to the Hamptons probably starting mid-day today.  Thursday and Friday will probably be dicey.
• Is this the fake-out breakout?  Time will tell.  
• 9:30AM Update:  Appears Greece has passed their austerity bill.  "Greece will save the world!"  I politely say bullshirt....and the market's overnight rally is already being given back.  They, or another country, will blow up and take the European Union with it.  Probably by summer of 2012.

 

• Above, Biggest Keynesian Stimulus + Slowest Recovery = Time to Rethink Keynesian Theory.