Archive - Jun 29, 2009

Everyone speaking about inflation these days. Many seeing it mostly in commodity prices and the insane printing of money. Yet with oil heading steadily back to the range from last summer, there is no bottom anywhere for home prices. Also, banks can hoard up all the cash they want: nobody wants it. Consumer are firmly retrenching into thrift mode, and cutting up credit cards or simply maxing out and not paying them. To say inflation is guaranteed in light of trillions and trillions of consumer wealth destroyed, is very shortsighted.

As expected last week, the tide in credit is turning. The average loan was 5 bps wider, while toxic bonds, just like that scene in Indiana Jones and the Temple of Doom, are starting their descent back into hell, wider by 78 bps on average, and just 23 bps away from the critical 1,000 bps threshold (after being at 895 bps last week).

Amusing to see the biggest propaganda voice for the administration and General Electric let this one slip. At 2:22 in the video below, Larry Levin discloses the truth about ongoing flagrant market manipulation. That's why CNBC needs a 15 second delay, although Freudian slips among all the noise are why watching the channel can be so rewarding at the end of the day.

Today we officially launch our new website, which will serve as the scaffold for much additional expansion in the months ahead. Blogger has been useful, however it has reached its limitations and it is time to move on. This is especially true as daily traffic has grown to a level far beyond what was envisioned possible when Zero Hedge was started.