Has anyone listened to me about the spreading of the debt crisis overseas? For two years now I have been saying this will not go away and it will spread to the other countries. It is not that they will not get bailed out it is just that they cannot get bailed out at the same time.  Private investors and companies are not going to put money into failing governments! They would rather park their cash in the bank and get ready for another recession which could be rather deep.

The market is crazy today. The S&P is up over 40 points. Did anyone see the dried ink on the paperwork saying the Greece bailout was done? Honestly, I do not trust what is presently going on but am happy the market has rallied from the bottom. Financial stocks are leading the way which has been a long time coming. Hopefully, BOA can get out of the penny stock area and shoot upward. Those who were caught short had to cover today which could be the reason for the rise on the last 20 points halfway through the day.

The market is being tested and large hedge funds and buyers are capitalizing on the recent decline. I suggest not being a sucker here because the downside could be coming once again. This being said, I think it is wise to follow the trend upward for the short term. The reversals we have seen over the past day or two show that no one has a clue what is going in Europe. Also, the experts have no idea on how bad this could affect the U.S. Fact, consumers are scared. Fact, companies are not hiring and are scared. Fact, the government has done nothing to find people jobs. Greece should be left to default and the dominos should fall along with it. Throwing money at everything is just hurting the FX market.

Obama knows his time is limited. I mean let’s face it he wasn’t exactly dealt the best hand when he came into office.  He has not created jobs and he knew he could not do this without help from Congress. If there is no money to spend than there is no one to hire! He should offer incentives to companies to hire from the government. Tax breaks and more write-offs will bring more companies to the U.S. instead of having them go abroad. Greed created this so give the greed back to where it started from. The companies have more money than the government and the administration wants to tax them further. I don’t get it!

Again, please do not be fooled about earnings. Most companies are doing well because of costs savings and raising their prices. The consumer is still struggling and with today’s news that Germany had a bad GDP announcement, things could get more complicated. Germany was supposed to be the key factor that would help the eurozone get back on their feet.

Hedge funds and owners of companies seem to purchasing bank preferred stocks. This is what they did in 2008 when the market fell 700 points and of course because of the financial crisis. Some are yielding as high as 10% because of their prices spiraling downward over the past few weeks. The market is up due to large companies testing the waters and people buying back their shorts. Do not be fooled by today!

How many times can the financial companies get sued before they shut them down. I mean really! Between Goldman Sachs and UBS they have probably shelled out billions to agencies, tax payers, and investors. Maybe they have more money than the government and they do not care. Maybe they do not care if they are sued because they make so much money that settling is worth it.

Why is everyone surprised that companies are reporting profits? They have had 3 years to restructure, meaning layoffs and the opportunity to pay debt down. Financials firms were allowed to write-off bad debt which no one knows the extent. The issue is when the derivatives market is figured out the amount of money lost could be bigger than the actual deficit. If people with PhD’s do not understand how they work than it will take years to have a real grasp on the situation. The debt issue could be coming to a conclusion today as the House Speaker and the President work out a 3 trillion dollar deficit cut and raise the debt limit.

Ok, so Italy is pledging to take action for its debt issues. Here is the thing! If the euro zone lets Greece default than where does that leave everyone else? Are they too far gone as well? Systemic risk is the word that typically accompanies the word fear. The fear that is being portrayed could raise the cost of commodities world wide. Japan has to basically build an entire country and the growth of the world is escalating. Prices on materials, grains, oil, etc are very high and knowing that Japan hs to build could keep these costs at their highs.

The debt situation overseas, rising inflation in China, and the U.S. deficit issue has caused a sell-off across the boards. To me this shows how little the President of the United States has and how powerful Congress is. If the United States loses its credit rating than China could pull out of the treasuries it owns. For the President, Geithner, and Bernanke having to speak the situation is getting worse. Earnings is not a focus because we all know many companies are financially sound after being able to save for the past 3-4 years. Could corporate America be taking over the government in the future? Could the U.S. be like the Roman empire? After all isn’t Greece asking for the private sector to bail them out?