The time will come that the Fed and Congress will have to jointly concede that the economic issues we are facing are structural and cannot be fixed by continuing what led us into this mess, ie. cheap money. In the…Continue Reading →
The fact that oil broke through the 98 dollar level to the downside yesterday is an indication that a new reality is now developing. The economy is not as hot as many thought and oil trading in the 90 to…Continue Reading →
With the employment report out today you see the basis for relatively benign price action on stocks and oil for the rest of the year. While we have probably seen the bulk of employment gains for the year, the Fed…Continue Reading →
We try to keep our focus on the Macro Picture. The markets yesterday tried to hang on to micro factors but the macro eventually moved to the forefront. You have to look at when the gold market started its upmove…Continue Reading →
“It feels like the economy is slipping back into recession. I cannot believe it because I have given so much funny money to the speculators. The middle class who are underwater on their home loans and losing jobs should be…Continue Reading →
The message that has come in clear since the start of QE2 is to buy precious metals, stocks, and commodities. Never mind that the problems we as a country face are structural and part of a deleveraging process that will…Continue Reading →
Ben is not the kind of person to admit a mistake. That is the crucial factor on which the bulls base their case. History says that Bernanke will opt for out-of-control inflation rather than try to get the house in…Continue Reading →
As the market awaits the crucial Fed meeting on Tuesday and Wednesday it contiunues to believe that Ben will not remove the punch bowl, the speculative party is just too good. The best weekend read is David Stockmans piece :…Continue Reading →
A close below that area will unravel the rally. We expect this to happen between now and Tuesday’s close. The Fed meeting on Tuesday will add fuel to the fire.
As all of you readers know, the QE2 experiment is to me an experiment that will not end up well. This weeks letter by John Mauldin features an “Outside the Box” column by Dr John Hussman titled “Charles Plosser and…Continue Reading →