I'll tell you why, Klaus is saying all the wrong things he's saying record sales this year and your company is making 0.02 a Q. WTF??? So if we do get a recession we can expect what??
The fact is stimulus doesn't work!!!! It just screws with the demand picture which is why exactly AA went from 0.33 last year to -0.39 this year. All these companies budget their production for growth and when the stimulus $ is cut back or exhausted the demand drops like a rock. They are still trading at 20X forward earnings!!! Hold at your own risk.
Only #$%$ are still in stocks. The banks are reporting tomorrow and next week......why do you think we are getting this sell off? Because banks who trade stocks know how the real economy is doing and they also know what they are going to report next week so the banks are the ones selling into the market. They know that the only reason why the DOW is at 16,000 is because the fed is spending a trillion dollars every year to keep up the market bubble. Now as they try in reign in their spending you will go from sugar high to market crash. The only way for them to avoid this is even more money printing. Look at the US debt clock it is off the charts you US #$%$ will NEVER EVER be able to pay back your debt much less generate meaningful growth or inflation. The real inflation rate is really over 20% because if you didn't have all these stimulus measures you would get a deflationary spiral of over 20%!!!!!
Does anyone not have an IPad. Who buys an Ipad 5 when they have an Ipad 4??? Nobody. The smartphone market is also saturated. Which means Y/Y comps going forward will start going negative!!!!
What the Fed is doing is WORKING at the cost of total debt look at the scary US debt chart and you might vomit. The growth is real unfortunately so are the cost. Are they getting back more than a trillion dollars in growth per year?? The answer is NO. They are forced in a corner where they realize the debt is unsustainable at current spending levels and need to dial back the borrowing.
It's real in the sense the Fed is spurring demand and job creation. The cost of this growth is 1 Trilllion dollars per year in stimulus and borrowing by the Fed. In essence total debt owed by all Americans are at an all time high as government debt = citizen debt. Which economy wouldn't show positive signs when your pumping a trillion dollars a year into it. Remove the stimulus which they are trying to do now and SPLAT goes the economy. Look at the purchases; it's not real strength. When the economy was real strong car companies were selling cars by the boat load and a good financing deal was 1.9% for 2 years. Right now everyone is telling us how the car companies are stronger than ever when they are giving the care away....0 down, 0 percent interest rate for 96 months. HELLO? So when you well a car that person isn't going to buy another car for 8 years!!!!! THat's not strength that's just pulling future demand to the present!!!
This is why stocks have been rallying. Unlimited printing of money, ultra-easy money rules, record low interest rates........spurring demand and asset inflation. Only problem is that the US has to borrow a trillion dollars a year for an infinite period of time to mask the true economy; what is the point of all this if it's all fake?
The rewarding system is shaped like a pramid as you sign up more underlings under you. Does this sound like a pyramid scheme to you?
Take the dough and run. After reporting a 4 billion dollar loss this is a dead cat bounce that lets the longs escape their long positions and nothing more!!! Another redesign?? Are you joking BBRY?? You guys are going to redesign a low end phone where Samsumg has now cornered the market with your substandard software and apps?
Where are the BB Bulls..... this is sound logic which is why the down side has still 50% to run......under $5 by years end as tax loss selling pushes this down even further. A company that use to have 10 Billion in the bank is now taking out loans after taking 3 years to launch BB10 is not where you want to be!! More losses and writedowns to come!!!!
The simplest logic for blackberry is this................ Is it COOL to own a Blackberry? When is the last time someone pulled out their Blackberry and said "LOOK AT THIS COOL PHONE?"..... the answer is not in the last 5 years. They are SOOOO far behind Apple and Samsung it's really beyond imagination as they were the market leader once upon a time. Redesigns will not fix the issue now as Apple and Samsung are pumping so much money into R&D that their 6 month upgrade cycles are now making BB phones more archaic with each passing minute. They tried to sell the company and no one wants to buy them because they all know that without a 10 Billion dollar war chest for R&D and extensive redesign of the software, phones, apps, etc going forward they are dead money. You also have to remember that the current generation of users that are now 10 years old and up are now growing up using Apple and Samsung insignitated products so the brand power and recognition will only grow stronger as this generation grows up......NO ONE WANTS A BLACKBERRY AND IT ISN'T COOL -- this is what you need to fix. Image is everything in technology and the BB has loss the image battle which makes it dead money!!!!
Do the research when in history has the credit for buying a car been this loose??? 0% for 84 months??? And if the economy turns and people lose their jobs and you sold 15 million cars that now no one can afford?? This is another QE loose money nightmare!!!
Use your brains people all the cars sold are on expanded credit.....When the economy was actually healthy you had to pay 3% on auto loans due to the demand and the cost of money. The roles are now reversed where they are trying to push as many cars out as possible by offering no down payment, 0% interest for 84 months!!!! How can you let consumers finance a car for 7 years at 0%??? If you can't sell cars in this environment you never will. Only problem is that they are stealing from future growth as the jobs are now starting to drop like flies due to deflationary pressures abound.
LOL.....The is the Freddie Mac moment where you buy more when it drops 50%. And hold for 2 years. All part of the process of wiping out Mobclix and all their debt!!! Shares will still trade over the counter.