Archive - Jun 29, 2010 - Blog entry

Is this partly responsible for the failure of the blowout preventer?

This is the fourth and final part of my major four part series dealing with what I feel is the primary question investors must now answer: is our future to be inflation or deflation? The answer has vast implications to our investment planning and decisions for the near term, and possibly for our long term. It is a very complex question with a lot of moving parts involving economics and politics. For those of you who have stuck with me for this series, thanks!

Tuesday's relentless sell-off across US equity markets marked an undeniable end to the continuous series of higher lows that had been intact since July 2009; closing below 1,044.50 on the S&P 500 Cash, bulltards can no longer claim that the primary trend of equities remains bullish. With ZMH the only S&P 500 issue closing higher, could GETCO be anticipating a large order from Mr. Market for a new hip? Joking aside, what can we expect after such an all-encompassing technical rout?

“We will have a financial crisis again — it’s just a question of the frequency,” said the economist Kenneth Rogoff, who, with Carmen M. Reinhart, wrote a terrific book titled “This Time Is Different: Eight Centuries of Financial Folly.” The title says it all. We’ve been through this before and will go through it again.

Will the methane kill marine life in the Gulf? Cause global warming? Bring on tidal waves and firestorms? Here's everything you ever wanted to know about methane - INCLUDING woolly mammoth farts ...

Larry Kudlow is selling this report as good news. I think it stinks

$2,000 in tax increases will be needed per household to cover increased government social service spending by 2015. This figure then soars to a mind blowing $12,636 by 2050. We are now paying the piper for 30 years of tax cuts and spending increases. Sure, we won the Cold War, but we did it all on an American Express card, and have been rolling over the balance ever since. The winner of elections from now on is basically irrelevant, as our problems have grown to the point of insolvability.

There's a whole lot of economic and financial surprises coming out of Europe today (wink, wink)!

CNBC runs as a headline the usual contradictory nonsense that we come to expect from certain heads of state. It would be funny if it didn’t portend such dire consequences. The Spanish banks, just last week, were declared to be some of the healthiest in Europe (spoken with my fingers crossed behind my back, wry smile and spittle dripping from the side of my mouth). Of course, Banco Santadar and BBVA shares rocketed on the news that they are no longer insolvent and that the Spanish housing market pauses no threat.

For all those smug PhD economists educated at the University of Chicago, Princeton and Harvard that prescribe fiat currency devaluation to toilet paper valuation as the solution to our global monetary crisis and then feign disbelief at the current state of affairs worldwide, Robert Welch predicted your favored Keynesian nightmare as early as 1958 and once again in 1974.