We promised some more jabs at the Fed this week, as well as some market views, however, we feel some comments on the conflict in the Holy Land are in order.
Fed First
With every crisis they seek to expand their power and control over our economy and lives. They now can buy from the marketplace mortgage-backed securities, courtesy of the latest disturbance in the economy. Soon, they will seek to purchase stocks. The lie will be to save the nest egg of many. They will be covering the big boys.
We predict that as many as (5) five more banks will need to be bailed out in the coming months. Of course, they will cover their asses. This is their real purpose. They will probably arrange for the largest banks to gobble them up and become even bigger. Remember too big to fail? This is what they are doing. Anyway, we further predict that within six months large commercial management firms and building owners will file for bankruptcy. The Fed realizes this too. This is one reason for their pause and possible rate cut. The coming debt on loans to these firms is coming due. It exceeds $17 trillion. All their actions weaken the value of the dollar which makes our standard of living decline even further. When these things happen, don't think that we have a crystal ball. There are many who think like us, but we all need to get on the same meme, End the Fed!
Near-term Market Outlook
The Dow as well as the NASDAQ rose higher than we thought. Thinking about this price action, we concluded that the market feels the Fed is done in interest rate hikes. They began placing bets. However, the charts tell us that resistance volume is stronger than the upward volume. We could be wrong. The target resistance points will seal the decision. We stated that the economy is in a "stealth recession." We feel that we are correct as we see inflation is ingrained and the dollar's rise has peaked. Here are our price levels to watch and study the volume in the movement.
INDU = 35,000. On a weekly chart this is in the upper range, consolidation level. Trans = 15,200. On a weekly chart this too is in the upper range of consolidation. SPX = Strong resistance at 4500. This is also in the upper range of consolidation on a weekly chart. NASDAQ = This has been the strongest index. It has resistance at 14,500. Upper-level consolidation.
Peace Killers
The Middle-East region has been in conflict ever since the creation of Israel. After years of murdering attacks on each other with open conflict of war on many occasions, peace seekers found their voice. Israel's greatest warrior, Yitzhak Rabin led the charge. Yasser Arafat was the leader of Palestine in resistance to the very idea of Israel. President Clinton pushed both sides to the peace table. After many ups and downs, the two finally made a deal. What happened, you ask?
Old Palestine Observation
- Palestine will never miss a chance to lose an opportunity.
Arafat recognized Israel's right to exist and recognized their borders. Rabin pulled back expansion land that previously was recognized as Palestine. He would recognize Palestine as a nation.
Many Palestinas called Arafat a traitor. A group called; Hamas began. These extremists stated that they would never accept Israel as a nation. They call for continuous war with Israel until it ceases to exist. Arafat lived the remainder of his life like a prisoner in his compound because Hamas would seek to assassinate him.
In Israel, many called Rabin a traitor. Before peace could be given a chance, a Jewish extremist assassinated Rabin.
This only shows that there are extremists on both sides.
Luke's Gospel
He writes what Jesus said, "A man who cannot be just with little, can never be just with much."
Prime minister Netanyahu was just starting out during Rabin's peace effort. He was against the peace treaty. He had little power, but now he has much power. There will never be peace with him calling the shots. Israel needs to elect a peacemaker.
With that said, the real problem is idiots and extremists are on both sides. I suggest "Tough love."
Why do we offer Israel $114 billion in aid when Hamas does not have one tank or aerial aircraft? Our support should have been tied to a peace effort. Now, what JFL suggests is not in the tradition of love, but it is logical. We should not provide humanitarian aid or any assistance to Palestine. We should not provide any assistance to Israel. Let the idiot radicals kill each other off. Then, when each citizen in each domain has had enough bloodshed and the peacemakers find their voice again, let us offer a table to find what He commands, "Love thy neighbor as thyself." Peace.
