Archive - Jan 17, 2012 - Blog entry

A triptych of greece, cement and resolutions.

The German industrial elite talks about exiting the Eurozone.... And to heck with Greece.

We don't have to run through the maze 5 times before we know what lever to push! 

I believe it’s only a matter of time before Germany walks out of the EU. When this happens the Euro will collapse a minimum of 20-30% and we will see numerous sovereign defaults. When the smoke clears the EU in its current form will be broken and we will have passed through a Crisis far worse than 2008.

Truthfully the only reason to be long stocks right now is in anticipation of more QE from the Fed at its January 25 FOMC meeting. However, the likelihood of more QE being announced at that time is slim to none. For starters, interest rates are already at record lows, so the Fed cannot use that excuse. Secondly the latest economic data out of the US, while heavily massaged, is showing some signs of improvement, which negates the need for more QE. And finally, Bernanke and the Fed are far too politically toxic for the Fed to begin another massive round of QE (the last one of $600 billion accomplished nothing) just for the sake of it.

All you need to read.

Recently, public interest in gold and silver and gold/silver mining stocks has been at multi-year lows. And that is a super bullish contrarian indicator.

So, who're you gonna believe, your NYC broker or your lyin' eyes???? Another Reggie Middleton "I told 'ya so" exclusive...

A failure of the NYC public school system featuring my daughter. For those that don't see the link between herd mentaility education and investing, my 5 year old son predicted the housing crash, Goldman's analysts and Bernanke didn't. 'Nuff said!