Archive - Mar 2011 - Blog entry

Excuse My Continued Lack of Surprise...

The US is now being run by an oligarchy, with lip service being paid to the electorate in allowing the people to vote for the candidates that the parties and the powers will put forward. There will be no recovery for the middle class until they assert themselves. I know I have stated this often in my tag phrase, “The banks must be restrained…”

During QE 1 (2009-2010) the Fed was pumping, on average, $50 billion or so into the markets per month. Today’s it’s north of $100 billion. And the stock market is nearly 100% higher than it was when QE 1 was announced.So stocks have doubled, but instead of lowering the liquidity infusions, the Fed has DOUBLED them. This alone should tell you that the Fed is losing its grip on the market. The fact it’s taking more and more money pumps just to keep the markets afloat should be a MASSIVE red flag for all investors.

A funny thing happened along the way -- just when investors got comfortable with the idea of a sure thing -- somebody or something pulled the rug out from underneath them.

If you have not made your year by now you are dead meat. Many of 2011’s big moves have occurred, and there aren’t going to be many fireworks for the rest of the year. Many asset classes are about to settle down into boring, predictable trading ranges. Unless you want to short the Euro. Stocks, gold, and silver are topping. (FX), (SPX), (GLD), (SLV), (TLT)

Traditional Green Banksta Cheer...

Some dramatic JPY strength overnight is pushing JPY crosses into in the short zone. USDJPY remains in the strong short zone as it has been for the last few months. GBPJPY has edged its way into the short zone, and although still in the neutral zone, EURJPY is not far behind. Developments with the Fukushima Nuclear plant could have a major impact on overall JPY positioning.

Right now there is a mass exodus out of the city of Tokyo. But not everyone can leave the city. There are over 30 million people living in and around Tokyo. So where in the world could you possibly put 30 million refugees?

Before you freak out, the authorities say it will be very low-level radiation which will not cause any health effects. (But can we, um, get our own radiation monitoring network up and running to make sure?!)

The death of the yen carry trade? Sounds like mass hysteria to me...

Why is it that the average investor has a firmer idea of what his next $50 clothing purchase should be than his next $5,000 stock purchase?

Let's do it ourselves ...

She thumps the bankers on the way out.

It's about that time!

Forget a "Chernobyl-like" meltdown ... we're already getting bad scenarios from the spent fuel rods.