RIMM is getting pounded for more than 6% this morning, bringing the two-day loss to about 26%.
VMWare got hammered for..... about 25%.
Apple is down.... about 35% from the top... and about 26% in the last month.
There are those who think this is a specific-stock story.
It's a general story, but you're not hearing this highlighted on CNBS and similar places in the media.
Simple: The Sell Side is how they make money. They're who buys the ads and pays the bills. And yet we sit here with the S&P right near 1500, while a 25% drop would cream those who bought back in late -- which is most of the people.
The Fed has encouraged and in fact argued for this sort of rotational bubble. On purpose. Just as they did so with the housing bubble, on purpose, and then they tried to claim they didn't know anything about even though a number of people, Paul Krugman among them, actively argued for the intentional creation for the housing bubble in public following the Nasdaq bust.
The crowd never gets out in time. You will not get out in time. You will not demand your government stop with the deficit spending and the bipartisan unwillingness to stop deficit spending. You will instead buy into the bubble TV mantra that "happy days are here again" and dismiss the fall of RIMM and VMware as "isolated incidents."
But they're not. Both RIMM and VMWare are real companies. RIMM has zero debt. It makes real money. Oh sure, there are those who think this will end and the company will collapse, but thus far they have all been wrong.
Amazon, on the other hand, is trading near $275/share after reporting deteriorating growth. The stock went up more than $10 on that report -- a report that highlighted slowing growth rates -- and not just a little either. As I wrote yesterday growth in the shipment of electronics and similar this most-recent quarter was cut in half compared to last year.
Got that? Cut in half.
But the stock price has gone up by more than half in the same time.
You buy stocks for accelerating growth rates, not collapsing ones.
This entire market is now sitting on the edge of a cliff. So is the economy.
Those who have laughed at predictions of market collapse will not sell in time. You won't either. You'll be trapped, just like the last time in 2008. And it will happen for the same reason it did in 2008 -- unrealistic (and knowingly so) claims of "growth" that don't really exist, touted by so-called "analysts" that pile on in both directions, first to suck you in while the sell-side (that's all the Wall Street folks) sell you shares, then again on the downside after the collapse has already happened.
Now let me point something else out.
RIMM, incidentally with the BB10, probably will have the first working browser in a smartphone. Android, for all of you fanbois who love it, cannot even properly handle entry into a textbox on a web page. It never has. It still doesn't, years later. The manufacturers get away with this because you buy their crap, even knowing it's crap, and you continue to buy it even though the first web browser, NCSA Mosaic, properly handled scrolling a textbox and going back to correct something in it -- an act that Android is utterly incapable of even today.
Apple's browser is only marginally better, incidentally.
Why do we have this crap going on? Why do you have cars where you can't change a crank position sensor without removing the engine, turning a $25 part into a $2,500 repair? Why have you bought millions of monitors and other electronic devices with exploding capacitors in them -- manifestly defective parts -- and yet you refuse to force the manufacturers to compensate you (by refusing to ever buy another product of theirs until they do)? Why is it that you will vote for a politician who promises that which is impossible, and you know it, and then you whine when your jobs wind up in China and gasoline prices double? Why is Ben Bernanke still chair of The Fed? Why have you allowed both Democrat and Republican to run more than a $1 trillion deficit for the last four years sequentially?
Because you are sheep. You refuse to demand that products you buy actually work. You refuse to expect basic functionality and repairability. You refuse to demand the truth and instead you continue to suck up the lies through a straw while you are being raped of your funds and freedom at the same time.
I started writing this column in 2007 because I didn't think it was fair that people get screwed again after the Tech Wreck in 2000. I gave up doing what I like doing -- fishing, diving, sleeping -- for more than five years to do this.
And increasingly, I think I made a mistake.
I am questioning whether the audience is a bunch of masochists, in which case this has all been one gigantic waste of time.
This is going to be a rough ride folks.
Fraud is not sustainable as a business model, and continually spending money you don't have with a promise to pay tomorrow with no actual end date is in fact fraud, because it is mathematically certain that you will fail, and when you do you're bankrupt.
Good luck folks.
Where We Are, Where We're Heading (2013) - The annual 2013 Ticker
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