Paralysis Sets In
It feels like investors and the stock markets are caught in no-mans land. To me the markets seem surreal at this point, as well they should be as the September 15 – October 15 critical juncture nears. To give me…Continue Reading →
Big Picture
The Tim Geithner Trojan Horse
How does this all end. At the margin it is Declining Consumption Economics versus Inequality Momentum. Deflation is in play, look at commodities and oil as big picture pieces , yet Risk On is what is hot. The Fed is…Continue Reading →
Dubble Bubble
Dubble Bubble – Wikipedia, the free encyclopedia Dubble Bubble is a brand of pink-colored bubblegum invented by Walter Diemer, an accountant at Philadelphia based Fleer Chewing Gum Company, in 1928. This is a strange time in the markets. Probably at no time in the…Continue Reading →
Production – Consumption Disconnect
Today’s employment number continues the pattern that started last fall, companies continue to ramp up into a demand brick wall. This week’s Outside the Box letter by John Mauldin, see our links section, goes into another aspect of the current…Continue Reading →
Summer Doldrums Starting
The fact that the market did not fall apart on Friday even though the VXX volatility index with a close of 31.82 confirmed that we have seen a significant top in the markets, to me indicates that a quiet summer…Continue Reading →
House of Mirrors based Projections
Since last Fall when the Republicans in Congress decided to play nice there has been a general consensus that the economy and the markets are off to the races, i.e. no more bad stuff, shutting down government, etc. The setup…Continue Reading →
What Does the Bond Market Suspect?
To many, not us, the T-Bond market has been much stronger than expected this year. Most stock market players believe that an expanding economy will push interest rates higher, i.e bond prices lower. So what does the strong bond market…Continue Reading →
Bottom-Up Crisis
Today the ECB followed deeper into the already discredited Greenspan-Bernanke trap, by doubling up on trickle down monetary policies. What the Global economies need is a new structure that starts with a healthy consumer. Tomorrow we will see how this…Continue Reading →
Outside Day….Prior to a Big Event
Today the S&P 500 made a lower low and a higher high and a all-time high. This is significant coming two days before the Big Event of the month, Friday’s employment numbers. Will the employment numbers confirm the auto sales…Continue Reading →
No Consequences
At first blush it makes one wonder why all the Central Banks in the world don’t just do what Bernanke did, buy government bonds. It would appear that now anyone can do this, how did the Central Bankers miss this…Continue Reading →