Scream First, Ask Questions Later

Written by Charles Payne


NEW YORK, NY - Back in March, I asked whether investors were prepared to get torepparttar bottom of Wall Street's Pandora's box. The response that I received from most readers inrepparttar 112752 US was that of outrage. They were appalled that I would suggest thatrepparttar 112753 problems were so bad that inrepparttar 112754 end we'd wished thatrepparttar 112755 lid had been kept on. I think their response was part patriotism (or in this case maybe nationalism) and part confidence that our system was just about beyond reproach. The European readers onrepparttar 112756 other hand, all agreed that I was on to something. Maybe they were being cynical in suggesting thatrepparttar 112757 US market wasn't perfect and that Americans, used to winning and being on top, wouldn't be able to handlerepparttar 112758 truth. Well folks,repparttar 112759 truth has been harder to handle than anyone thought it would be, and that patriotic fervor has become rebellious anger.

Last week felt as if every investor climbed on their window ledges and screamed (all facing east to project their collective voices to Wall Street) I'm mad as hell, and I'm not going to take it any more!!!! (Byrepparttar 112760 way, that wasn't confetti flowing inrepparttar 112761 air, those were worthless stock certificates.)

The big question overrepparttar 112762 weekend is: when does it stop? This question can be applied to several areas of our lives, includingrepparttar 112763 stock market. In fact, I think it must be answered fromrepparttar 112764 point of view of corporate scandals and wrong doings. At this point ofrepparttar 112765 stock market meltdown, there is no doubt thatrepparttar 112766 driving force isrepparttar 112767 continuing stream of scandals. However, one has to wonder what constitutes a scandal. These days it just looks like any misstep by corporate America is/was a deliberate attempt to cover something up.

Here isrepparttar 112768 definition according to dictionary.com: scan·dal (sk n dl) n. 1. A publicized incident that brings about disgrace or offends repparttar 112769 moral sensibilities of society: a drug scandal that forced repparttar 112770 mayor's resignation. 2. A person, thing, or circumstance that causes or ought to cause disgrace or outrage: a politician whose dishonesty is a scandal; consideredrepparttar 112771 housing shortage a scandal. 3. Damage to reputation or character caused by public disclosure of immoralor grossly improper behavior; disgrace. 4. Talk that is damaging to one's character; malicious gossip.

Will This Gift Keep On Giving?

Written by Charles Payne


Was last week a gift fromrepparttar heavens? Isrepparttar 112751 worst over? These arerepparttar 112752 questions that everyone is asking himself/herself as we head into a new week with a head of steam and a northerly directional bias. Haverepparttar 112753 rains cleared, hasrepparttar 112754 lava cooled? Or was last week a sick joke of nature, sort of likerepparttar 112755 duck-billed platypus? Was it only natural thatrepparttar 112756 markets finally rebounded?

I know I’m supposed to be answering these questions, not asking them, but I have to throwrepparttar 112757 questions and topics out there before tackling them. The short answer is I’m not sure to any ofrepparttar 112758 questions above, but let’s view them from all sides and see what we come up with.

First, I don’t think there was divine intervention involved in last week’s action. I do believe that there were certain events in America that probably answered a few prayers. (Byrepparttar 112759 way, if those trapped miners in Pennsylvania had been rescued duringrepparttar 112760 week, it would have provided a spark torepparttar 112761 action. Thoughrepparttar 112762 comparisons are unfair I couldn’t help but think of how decisiverepparttar 112763 response torepparttar 112764 emergency was compared torepparttar 112765 Russian attempt to saverepparttar 112766 Kursk a few years ago.)

The biggest prayer was one seeped in anger and even hatred, and that was forrepparttar 112767 open arrest of a big-time CEO. Whenrepparttar 112768 Regas family was led away in cuffs,repparttar 112769 market was already climbing offrepparttar 112770 mat, butrepparttar 112771 news superchargedrepparttar 112772 rebound effort and many speculators that had been waiting patiently found themselves in a position where they had to jump first and ask questions later.

It almost makes Americans come across as Huns, butrepparttar 112773 blood lust was atrepparttar 112774 top of many disgruntled investors wish lists. Still, that wasn'trepparttar 112775 type of gift that has a very long shelf life. It was a momentary situation that only whets our appetites for more. However, investors cannot live on revenge alone. They needrepparttar 112776 shelter of a strong economy,repparttar 112777 warmth of growing earnings, and of course safety from a system of checks and balances that work.

So that takes us to question number two, isrepparttar 112778 worst over? I’d sayrepparttar 112779 worst isn’t over, if consumers stop spending, if there are more high profile scandals (I can’t believe how many of Wall Streets top pros are saying that companies like Citibank are buys on weakness because they’re too big forrepparttar 112780 government to topple or expose) or if corporate profits don’t return (deflation is still a greater probability than a double dip recession).

Yesrepparttar 112781 rains cleared for a few days butrepparttar 112782 clouds of doubt still hover above. I'd say either stay inrepparttar 112783 Ark or nearrepparttar 112784 gangplank. The lava has cooled, but it is still too hot to relax or drop one's guard. Yes, this market is like an animal that doesn't know if it is fowl or fish. So far this year, those that have felt thatrepparttar 112785 worst was over have suffered cruelty fromrepparttar 112786 stock market. It would be absurd not to still show vigilance to such possibilities again.

That brings me to even more sinister thoughts and questions. Was last week’s gift a Trojan horse? The shorts are always going to short. It becomes a lot more difficult for them to spread their message and manipulaterepparttar 112787 market ifrepparttar 112788 forward PE forrepparttar 112789 S&P is below 20, as opposed to above 30.

Sometimes they pick certain points to cover and lure in anxious watchers that have had cash burning a hole in their pockets. The ensuing rally provides them with another chance to re-shortrepparttar 112790 market and spread their message of doom with better conviction. I thinkrepparttar 112791 shorts last week had little choice on Wednesday except to get out ofrepparttar 112792 way. But, they’ll be back.

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