Wake up!

The more I look, the more I see evidence that this recession is no mere recession -- it's the inevitable result of an organized plan to siphon all the world's cash into the pockets of the very few. Evidence:

1. Iraq reconstruction is now recognized as a fraud far worse than Madoff -- and it would not have happened if senior U.S. officials had not colluded in the crime.

2. Option ARMs are far worse than mere subprime loans, and their true impact has not yet hit.

3. Obama did nothing -- well, almost nothing -- to ease foreclosures, even though he could have forced the mortgage lenders to place their loans into radical rewrite.

4. A.I.G. -- supposedly "rescued" -- remains both dangerous and in danger. A.I.G. keeps writing insurance policies because doing so the only way it can ever hope to repay taxpayers. But A.I.G. lacks the ability to cover the risks it has taken on. The conglomerate has hidden its severe vulnerabilities by moving assets around amongst its constituent companies.

5. Pretty much everything we're hearing about corporate earnings is a big fat lie.

Exactly how impaired are banks’ impaired loans? The Financial Accounting Standards Board, under political pressure, has ruled that the banks decide. Might as well ask a six-year-old who took the cookies.

Economic reporting bears no relationship to economic reality.

6. The jobs ain't coming back anytime soon. Unemployment will get a whole lot worse. The government will have to extend unemployment benefits. But we can't do that forever. When the dole ends, foreclosures will rise even higher -- and an uneducated, easily-gulled citizenry will be radicalized.

7. Obama's stiumulus plan has created few new jobs. His "stimulus" seems to have been designed to fail, thus giving Republicans a chance to say: "Well, we tried socialism and it didn't work."

8. The recession has been extended.

9. Wall Street's rally is based on nonsense. Those high frequency trading programs exist only to scoop up any remaining dollars and place them in the coffers of Goldman Sachs. The Fed has been buying lots of mortgage-backed securities. (See point 2.) Wall Street has become a massive Ponzi scheme backed by taxpayers. The fundamentals aren't there: We don't make anything and we can't afford to buy anything.

10. Obamacare has been midwived by the health insurance industry and the drug companies (even though candidate Obama lambasted the drug companies). The insurance racketeers would wither away if left alone. The "reform" package is designed to keep the monster alive by forcing more people to buy expensive Krappy Kare.

I could go on, but needn't. The real question is: When will everyone finally wake up?

Tyler Durden says that we will remain in a state of mass hallucination for another six or seven months. Next year, the trance will wear off.

It was a short 5 days ago that we wrote about CNBC's misrepresentation of this earnings season as a stellar success for companies. Earnings and revenues were down 32.4% and 15.1% then. Since then the economic situation has deteriorated even more: as of today earnings were down 33.4% and sales have declined 17.4%, respectively, quarter over quarter. And while earnings are now supposed to increase by 114.9% in two quarters by inhaling green shoots and what not, more curious is out of what hat will revenues stage a dramatic 22% increase in just 6 months. If anyone held a gun to my head to indicate when disappointment with guidance/analyst expectations would finally set in, i would have to say middle of February 2010 when miss after miss, both top and bottom line, will demonstrate just what an unjustified joke this rally truly is.

To which one wit added the following:

The economy doesn't have anything to do with the stock market. Given enough liquidty we could have 50% unemployment, cannibalism in the streets and DOW 36,000. In fact that's my forecast. Bon Appetit.