Good morning,

Whilst the Government and the RBA tell us we have never had it so good in the mining boom ,I am struggling to see how we are benefitting on the East coast. News that 750 Optus workers,400 TAFE and 1000 Truck drivers will be out of work is proof that things are not that flash..moves by the RBA are too late and despite the banks now starting to pass the cuts on, the persistent Chinese water torture of watching Julia and her gang implode coupled with job losses due to the dollar increase and other factors is taking away confidence faster than you can say Carbon tax!

 

I have been cautioning about this market for a few days now and continue to be nervous..there seems to be a complacency that is worrying in place…now I don’t want to be a doom and gloom merchant because I try to be a glass half full type of guyexcept when I listen to Nick Cave that is but the news from Europe is compellingly bad…the austerity malaise is spreading .News that the ‘Zombieland’ unemployment got to 10.8% is not good..in the Southern economies it is much worse and the hitherto immune German economy is starting to show some cracks..couple that with the slowdown in the US and China and it’s easy to draw a picture of gloom spreading through the World…the fact is the Zombie crisis will be around for a generation..they have been living beyond their means for too long and without a break up of the Euro it’s hard to see how they are going to address the balances in the economies…so we may have to just get used to it and ignore it…as Chief Finance Minister in the Eurofamously said “When it becomes serious, you have to lie”

 

I remain of the view that things are going to be harder in the coming months and the elections in Europe will focus the computer trading programs next week..

Things that make you go mmm…

 

1.The goal from Papsis Cisse against Chelsea is the most amazing thing you will see today!!Check it out on the web..

2.NAB cuts it rate by 32 bps then CBA goes 40bps…come on ANZ and WBC.

3.Bank margins under pressure but divs still good!ANZ research enclosed..HOLD

4.I am puzzled as to how the net outflows from funds in the US are continuing whilst the market pushes ever higher!

5.Budget next week…will intimate cosmetic surgery face the unkindest cut of all.

6. Westpac’s first-half cash profit came in at $3.195 billion, up 1 per cent from a year earlier, and slightly more than the $3.12 billion profit expected by analysts. The net result, though, was less positive. Westpac’s first-half net profit fell 25 per cent to $2.97 billion – in line with market expectations.

7.Its a year since Bin Laden was killed and the US have declared victory in sight and not an aircraft carrier to be seen!

8.Much’s Scream sold for $119m…..Euro scream will cost a lot more! Elections will be very interesting….
Complacency is NOT justified…stay sharp people!

And let’s be careful out there!

Clarence

XXX

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