Archive - Aug 2011 - Blog entry

These kinds of extremes in sentiment have not been seen for 12 months.

BP would NEVER lie to us ...

German taxpayers all along were wary of becoming the only teat on the EC’s udder for what Winston Churchill once called Europe’s soft underbelly. There is nostalgia, too, for the once high-flying DMark which few wanted exchanged in 2002 for Euros. Now those feelings are exploding with Germany’s vaunted economy going south – but not just for bailouts for Greece, Portugal, Ireland, and possibly Spain, and even Italy.

Perceptions have turned very negative and the media has been increasingly playing on fears (e.g. the U.S. debt ceiling crisis and the big default scare). If the economy gets so bad, and the stock market falls low enough, many believe the Fed will step in with another short term fix to prop up the stock market - QE3.

Storm clouds over Martha's Vineyard...

Courseille had created something that was not only delicious, but an additional revenue stream for his employer (the “chicken” sells for $12, and to be honest, I would have paid $20 for it, it’s that good). Whether the guy knows it or not, he’s a marketing genius (on top of a master pastry chef). I had to meet him.

In plain terms, we’re entering a period in history that will rival the Revolutionary war. This country will be very very different by the time it has ended. Many people will lose everything in this mess. Yes, everything. 

In order for the  FOMC to keep the funds rate within the desired range, it will have to purchase whatever government debt exists or is issued into the market.  This amounts to establishing a de facto QE3 policy without announcing ex ante the amount of securities it intends to purchase.  Instead, the amounts purchased will be “whatever it takes.”

What happens when Risk is priced too cheap for too many years.....

I'm looking for something Sunday night. I don't think the world can wait until Jackson Hole

What is actually going on in the Financial World?

I am writing this letter to you not as a liberal, not as a conservative; not as a lefty, not as a righty; not as a Democrat, not as a Republican, not as a Tea Party populist; not as a Christian, not as a Buddist, not as a Moslem, not as an atheist; not as a socialist, a communist and certainly not as a bailout capitalist.

You are NOT authorized to view this unauthorized, crazy video ... DON'T look ...

The only place where slop is being dished in abundance ...