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January 2018
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Morning Market Briefing – Thursday- 09/26/2013

Yesterday the US markets finished in red (Dow -61.33 at 15273.26, Nasdaq -7.16 at 3761.10, S&P -4.65 at 1692.77) on relative low volume (except JCPennies!).  It has become blatantly obvious that the market is wedged between two massive forces.  When one of these forces weakens, the market will dislocate, rallying or selling off with conviction.  Behind the bearish case, we have the potential government shutdown.  Behind the bullish case, we have da Bernanke and his helicopter.  Everyone knows that you can’t fight the Fed.  At the same time, everyone knows that a government shutdown would break the market.  The market, unsure of its own future, is lamenting waiting for clarity.

Only Gods chosen Lloyd Blankfein was sure of something.  He adamantly clarified how banker’s bonuses were not only DESERVED, but was what made Goldman Sachs survive the 2008 financial meltdown.  Many would like to adamantly clarify and educate Little Lloyd, it was Goldman Sachs participation (and “shitty” deals) that caused the financial collapse.  What saved Goldman was Hank Paulson (X-Goldman CEO) honoring AIGs contracts with Goldman Sachs at 100% and the government bailout of the banking industry (which the public did not support).  In fact, had the government stepped in earlier and saved Bear Sterns and Lehman Brothers, Goldman Sachs would have lost a fortune betting on the collapse (which they participated in and was betting on).  Oh, if the public only knew the truth, I’m afraid the streets of New York lampposts would be decorated, dangling with Goldman Sachs employees.

Today the market is opening higher.  Everyone is watching the Special Olympics in Washington while Ben Bernanke continues to fly his helicopter.  What do you think ends first, the Special Olympics or the fuel in Bens helicopter?

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