Archive - Mar 7, 2011 - Blog entry

Love the beaches, hold off on the bonds.

Nothing to see here... Keep moving along people... Your regularly scheduled programs will not be interrupted...

Funding for U.S. state pension plans improved marginally in 2010 as the economy recovered from the recession, a report from Wilshire Associates said. Will battered plans continue doing better?

"You put Lloyd Blankfein in pound-me-in-the-ass prison for one six-month term, and all this bullshit would stop, all over Wall Street," says a former congressional aide. "That's all it would take. Just once."

Where do the likes of Warren Buffet get off when he's all in favor of the death tax and allowing the government to redistribute your wealth yet he leaves his pile to Bill Gates's foundation, neatly avoiding the death tax.

A secondary reason for Silver outperformance is its pricing: at $36 per ounce, buying Silver is much more affordable than Gold which costs $1,400 per ounce. Consequently, Silver is a kind of “poor man’s” inflation hedge and so is profiting from an influx of orders from those who are growing increasingly worried about inflation but cannot afford to buy an ounce of Gold.

"You can't help that. We're all mad here." Cheshire Cat

Retailers in the UK release the Motorola Xoom at competitive prices and Sam's Club announces pre-orders for the muscular Xoom at $60 BELOW the price of the iPad 2. Apple's flagship mobile product has not even been released yet and its being undercut by more technically more capable competitor, and there are dozens more competitors on tap. Margin compression is inevitable for ALL players involved as this becomes a pricing bloodbath to the benefit of tech consumer.

Was the financial crisis the result of targeted attacks by terrorists groups? Was it China? Jihadists? Or the Duchy7 of Grand Fenwick? A a John le Carre novel would make better reader.

The single most critical issue to note right now is the US Dollar’s collapse. The US Dollar has broken below its multi-year trendline in a BIG way. Any hope of a bull market run is pretty much over and we’re on our way to a MASSIVE currency devaluation.

As is customary in these times of uncertainty and economic turmoil, the quite timely intellectual giants at the ratings agencies pull up to a burned down house stating that they smell smell something asunder.
Alas, better late than never and yet the Greek government seeks to have even that very late Truth... "Adjusted"!

EURUSD continues its consistent medium term uptrend at the same time retail traders are consistently increasing their short position to 65.97%. The big news event of the day is CAD Building Permits 08:30 EST other than that Trichet speaks at 07:00 EST, most other events of the day are relatively minor in historical effect.