Michael Covel: News & Info.

Just caught this:

“I think right now there are just some very powerful negative images that are alive in many people’s minds — images of the Depression, images of people selling apples. The images of the downside are just so salient in people’s minds, and nobody has presented an upside image yet,” said George Loewenstein, a behavioral economist at Carnegie Mellon University

The “apples” line made me chuckle.

1. The American baby boom generation has seen their buy and hold retirement accounts shredded in the last year. Shredded. An entire generation, perhaps the most influential American generation, was sold the story that buy and hold would take them to retirement shangri-la. Anyone got plan B for these folks?

2. I just caught a Russian market official speaking about Russian market distress. He said that the Russians were responsible for their troubles 10 years ago, but now the Americans are responsible for the latest crisis. Nice try. The current global meltdown is a result of first greed then fear. Those emotions don’t care about nationalities or borders. So if you, or if anyone, regardless of country, don’t like your portfolio’s direction…look in the mirror.

3. How far can the Dow drop? I don’t know. No one knows. If someone tells you they know, and you believe them, please go see a medical doctor to ask for a full frontal lobotomy.

Why do we reward U.S. car makers for 30 years of futility? U.S. cars can’t compete with Toyota, BMW or Mercedes in the market, so we now we give them a big gift to make more crap? What next another “K car“?

A new YouTube clip I just posted.

Feedback from an old pro trader:

In 35 years I have never seen so much corruption in the former free markets. Never!!!!!! I had the ES nailed so at least I can eat a few more months. I have a friend running a $1 billion hedge fund that 5 weeks ago was plus 18% YTD. He is now running $600 Million and it’s not because of withdrawals. 41% drawdown! 5 weeks!

If people start to feel the game is rigged, why play? The consequences of these bailouts are not good and I am not just talking of the trader mentioned above. The issue is one of trust and trust is disappearing.

The powers that be said the same thing during the LTCM crisis 10 years ago.

So if AIG can’t fulfill its end of the life line given to it by the United States government what happens? Well, that’s simple. The U.S. government will own the largest insurance company in the world. Think about how disgusting that fact is for the country that likes to crow about being a beacon of capitalism.

So if speculators were to blame for crude oil when it hit $147 are they also responsible for it hitting $106 today? Simple question. P.S. A good friend gave me this line today so I can’t take credit for it!

George Soros on the current credit crisis (watch).

The conversion of the United States to socialisim continues to march along. Fannie and Freddie are now part of the government! Tell me again how we can honestly knock the Chinese system given today’s action? Does this action mean that if U.S. equity markets were to crash that the Feds would take over all private corporations too?