Archive - Dec 9, 2009 - Blog entry

Clearly Bubble Ben has shown his hand but don't be so convinced that the Fed will not raise rates in 2010. If the recovery comes in stronger than anticipated, you might see some significant rate hikes in the second half of 2010. That's when the markets will really get interesting.

Innovation, in and of itself, is a very good thing. The issue currently at hand is that it was not financial innovation that got us into this mess. It was fraud! Financial engineers attempted to create methods of circumventing regulations, laws, prudent risk management, common sense and mean market returns. This lying, in turn, was labeled "innovation", which it absolutely was not, and the moniker has been carried on in the media ever since.

Christina Romer is one of Obama's chief economic advisors. But she has absolutely no clue what to do about this crisis. Her recent letter defending the Administration's policies is just the usual hack political stuff one would expect from them. She is typical of the problems in Washington. She means well, but she is fabricating the truth in order to justify their actions. Their approach to using government power is one we should all be afraid of. She spells it out quite clearly.

Volcker, Soros, Taleb, Krugman and many others call for old-timey banking ...

Just a quick perusal of news (and an analytical fact or two) in the CRE space that makes one wonder why Goldman Sachs thinks that anyone would believe them. Then again, looking at the ($19 billion) bonus pool, much of which was just nearly halved by the UK government, it appears as if enough people believe them. Let's see what we can to do alleviate that...

A Detailed Technical look at the DXY / US Dollar Index on the 34-minute, 55-minute, 89-minute, 144-minute, daily, weekly and monthly time-frames.