I was busy today and only recently saw the news of the big bounce in gold, silver, and oil.Of course these commodities were way oversold and were poised to bounce. I think there may be more at work here as we have seen news of a money market fund trading below par and some US T-bills now effectively yielding zero.

I was watching CNBS’s stupid “Is your money safe” infotainment segment and heard Larry Kudlow calling for rate cuts and curbs on shortselling. They even had a pension fund manager on who was asking other pension fund managers to make the stocks of Morgan Stanley, Goldman Sachs etc.. unavailable for shorting as if short sellers are the reason for this debacle. His reasoning was that investment banking is one of the last “industries” the US has dominance in and we have to save it. I guess they are letting anyone run money now including this one round dim bulb. Of course there is no discussion of why these outfits levered up 25 and 30 to 1 (they were greedy and thought they had a one way street).

There is no discussion of the fact that short sellers, like me do not short stocks of companies that have their act together. That did not stop resident sycophant and Bush administration boot licker Larry Kudlow to call for more government intervention in the markets. The cherry on the cake was of course resident village idiot Dennis Neal who of course let us in on the secret that if we buy stocks now we will look back in several years and rejoice at our good fortune. He was negligent in informing everyone that anyone who had followed a buy and hold strategy of the general market lost money or at best has been even for the last five years. Oh well we got to keep the schlubs in managed funds and keep those assets under management up to collect fees. Who cares if they make or lose money my fee income is at risk.

I’m making a prediction right now.

This bear market will not end until CNBS is discredited and is taken off the air. I think things will become so bad in the stock market that people will not even watch that garbage anymore. Long live Bloomberg TV a least they put on Jim Rogers and Mark Faber and do not interrupt them.

John Polomny
The Real Deal