What a week in the markets!
Has the Gov actually plugged the holes? Has the feds lent us to prosperity?
If history is on our side as it should be, then we are in for much more intervention, much more liquidity collapse and much more pain for shareholders.
Just like 1930's, once the devalue comes into play it will be off to the races with gold.
For now we will take a wait and see approach.
Still short SPY.
Saturday, November 29, 2008
Monday, November 24, 2008
Citi
Here we go again....
This time it will be different. This time 300 billion will just be right.
This is what you get from central planning. You cannot know as much as Mr. Market does. Never! So why do we pretend to send supposedly smart people to DC. and Wall Street expecting to outwit Mr. Market. Dynamic markets are far to complicated for one man or even many men to understand. Let the market do it's thing. the alternative is outright socialism.
I noticed an "End the Fed" rally in my area. Why after the facts did I see this. If I had known, I would have been there. (there was no lack of publicity for a rally against prop 8 in cal that for one has nothing to do with my state and 2 prop 8 will be over turn by a power hungry judge system in cal. but that is another subject) It is about time folks started to wise up about these crooks. Talk about organized crime...I understand Ron Paul has some bills flying around to abolish the Reserve act and other assorted bills. I don't take political sides as most of you know I feel both parties are as corrupt as the mob, however in the case of the reserves being abolished, I don't care who does it, just do it. Google Ron Paul and maybe even get on his email list.
Until we get rid of the reserve, plan on more gimmicks, like the devaluation that is coming and our currency backed by a world currency. That would make gold go out of sight.
In the event of a devaluation, creditors get hammered.
This time it will be different. This time 300 billion will just be right.
This is what you get from central planning. You cannot know as much as Mr. Market does. Never! So why do we pretend to send supposedly smart people to DC. and Wall Street expecting to outwit Mr. Market. Dynamic markets are far to complicated for one man or even many men to understand. Let the market do it's thing. the alternative is outright socialism.
I noticed an "End the Fed" rally in my area. Why after the facts did I see this. If I had known, I would have been there. (there was no lack of publicity for a rally against prop 8 in cal that for one has nothing to do with my state and 2 prop 8 will be over turn by a power hungry judge system in cal. but that is another subject) It is about time folks started to wise up about these crooks. Talk about organized crime...I understand Ron Paul has some bills flying around to abolish the Reserve act and other assorted bills. I don't take political sides as most of you know I feel both parties are as corrupt as the mob, however in the case of the reserves being abolished, I don't care who does it, just do it. Google Ron Paul and maybe even get on his email list.
Until we get rid of the reserve, plan on more gimmicks, like the devaluation that is coming and our currency backed by a world currency. That would make gold go out of sight.
In the event of a devaluation, creditors get hammered.
Friday, November 21, 2008
Pushing on a string
We have seen unprecedented pouring of cash into the economy to no avail. We have reached the point of pushing the string. For the last 50 or so years the economy reacted to the fed stimulus. It apears this is no longer working. Defaltion is the headlines. Problem with headlines is that are usually after the fact.
I dont recall many in the press shouting of the disasters we are in until they appeared. So take what the press is squaking with a grain of salt.
As traders we always need to understand what is coming not what is. So looking down the road....History is on our side here.
What will likely happen is a massive devqaluation of all major currencies. Roosevelt did this in 1932 and forbad anyone from hold gold. We witnessed this on an almost daily basis in South America in the '80's. About the only way to get out of all the debt we have now is to devalue. The inflation gig did not work. Defation is everywhere.
Who gets hurt in a situation like this. Creditors. Debtors (like the U.S.) come out great. Creditors take less than face amount on the loans. Much like the inflation of the '80's. there is talk already of placing the dollar on a world bank standard. It will be interesting to see waht happens. Gold shouls shoot for the moon much like it did in the 1930's after the equities collapsed.
I am not recommending running out and buying all you can of gold, but in the very near future this will in all probability play out.
Just be ready.
I dont recall many in the press shouting of the disasters we are in until they appeared. So take what the press is squaking with a grain of salt.
As traders we always need to understand what is coming not what is. So looking down the road....History is on our side here.
What will likely happen is a massive devqaluation of all major currencies. Roosevelt did this in 1932 and forbad anyone from hold gold. We witnessed this on an almost daily basis in South America in the '80's. About the only way to get out of all the debt we have now is to devalue. The inflation gig did not work. Defation is everywhere.
Who gets hurt in a situation like this. Creditors. Debtors (like the U.S.) come out great. Creditors take less than face amount on the loans. Much like the inflation of the '80's. there is talk already of placing the dollar on a world bank standard. It will be interesting to see waht happens. Gold shouls shoot for the moon much like it did in the 1930's after the equities collapsed.
I am not recommending running out and buying all you can of gold, but in the very near future this will in all probability play out.
Just be ready.
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