Archive - Dec 2010 - Blog entry

The real problem with having $1Tn worth of US ETFs out there (and who knows how many foreign ETFs are holding US equities?) is that, as happened in 2008, should investors begin cashing out, they will create waves of indiscriminate selling – just as we currently have waves of indiscriminate buying.

The tax compromise between the President and the Republican leadership has led to a wholesale rerating of the Treasury market. Massive, short term government stimulus is working far better than imagined or publicized. Needless to say, this is a hugely positive backdrop for stocks.

Now, many commentators have pointed out the various ways in which this policy has endangered the US’s balance sheet, economic clout, and currency. However, there’s one element that NO ONE seems to have picked up on. That is…

You, me, and everyone else in the US, is now PAYING the Fed for its insane, anti-Middle class policies.

Remember, we are continually paying the debt via interest payments drawn up from tax receipts. Thus, by buying up US Treasuries, the Federal Reserve is in effect reaping interest payments from the US populace.

Here come the requisite "I told you so's", but before we get to that, here's an IQ test for anyone who feels the NAR or their chief economist deserves ANY airtime or media representation whatsoever...

We are not as big as we think.

Twas the night before Christmas, when all through the White House...

Android is slated to soon surpass iOS for the amount of ad impressions served according to data found in the latest inMobi report, the 3rd largest mobile ad network behind Google’s Ad Mob and Apple’s iAd. According to inMobi, their report is based on one of the most extensive analysis performed in the industry, covering ?mobile consumers in over 115 countries around the world.

Merry Christmas, from the US Financial Oligarchy Infrastructure, to the US Taxpayer

Retail traders are notoriously wrong at picking market direction/tops and bottoms. Most retail traders very naturally seem to adopt a counter-trend stance and this offers very accurate signals for individuals looking to trade against this group. This daily report is designed to help traders focus their efforts on higher probability pairs.

The quick answer to the headline of this article is yes.

Keynes' ghost bothered him. He didn’t know whether it was a dream or not. Then he remembered that a spirit should visit him at the opening NYSE bell...

From the UK to the US, the day of reckoning has arrived...

James Bullard, President of the Federal Reserve Bank of St. Louis was on CNBC Monday, December 20, 2010 mostly defending the Fed’s QE2. What struck me as totally self-contradictory were some of Bullard’s statements regarding the QE2, and inflation, which I will outline and rebuff here.