Bernanke the Magician
Ben hints of QE 3 and the Dow is up 130 points. It truly is magic. This sets up a test of Bernanke’s power. If the S&P can close above 1422 and gold above 1710 this week we will probably…Continue Reading →
Political Talk
Paul Ryan, the germ behind the Next Meltdown
The points in the article that we posted on Monday concerning what is sacred, the ideology behind that sacredness, and the result that voters do not vote their pocketbook but in fact vote their ideology are central to what will…Continue Reading →
Sweet Spot between Stimulus and Austerity
Yesterday’s market action would appear to be a little bit of excess at the end of the road. No doubt we are still feeling a tail wind from some of the stimulus for the past three years but the worm…Continue Reading →
Sacredness and Gas Prices
No changes in our thoughts or market positions today. Here are the two best reads from over the weekend at the NYT. http://campaignstops.blogs.nytimes.com/2012/03/17/forget-the-money-follow-the-sacredness/ http://www.nytimes.com/2012/03/18/opinion/sunday/obama-sets-gas-prices-just-another-gop-myth.html
The Election No one Wants to Win
Does it occur to anyone that no one really wants to win the 2012 election? Obama seems to feel he has to, but occasional slips portray someone who has accepted a one term Presidency as a real possibility. The Republicans…Continue Reading →
A Contrarians View
1. Ben is about to lose a play: Yesterdays blurb by the WSJ “The Fed considers a new “sterilized” bond purchase program, still aimed at boosting the economy, but also designed to calm inflation fears. With this plan, the Fed…Continue Reading →
Macro’s Moving Up Front
A gold close under 1688 will start the second leg down since the September 2011 highs. The dollar is asserting itself. No change in our long term views. Short Gold. Long Dollar Bearish on commodities but no positions. A little…Continue Reading →
Obama Explained
It is tough to be a contrarian and feel the pressure of moving early. So to pass the time here is the best article that I have seen on Obama in a while. It is in the current issue of the…Continue Reading →
The Seeds of Real Austerity
According to CNBC’s Kudlow, Romney is to announce his flatter tax program today, kind of a Laffer redo. From how Kudlow describes it this should appeal to the Tea Party crowd. This could be a real problem for Obama as he…Continue Reading →
The Long Roll-IN
This is another day when I have nothing new to add to the assessment of economic and market conditions. A combination of a dysfunctional congress and European austerity is setting up the markets for a precipitous decline. Market volume is light on the…Continue Reading →