Monday, November 16, 2009

Just Wait

With bubbles on everyone's mind from Markman to Fleckenstein to former Fed officials this past week, I can only recommend sitting on your pile until this thing blows up. The Fed has been trumpeting strong dollar policy while the greenback plunges to lows on a daily basis, bolstered by Fed minutes that read, "No way in hell are we going to raise rates anytime soon." Every day the market goes up buys these guys another day of hope that our service economy will magically return to 2006.

As Fleckenstein points out, whether it's Greenspan or the current oligarchy, the false belief that jumping from one bubble to another to prevent a severe economic crash has been disastrous for our country and how our financial system is allowed to operate. While your asthmatic child was waiting to receive their H1N1 vaccination, the boys at GS were loaded up so they could continue to make trades with stop losses at $200 million.....

Thanks to The Mixx for his call on 3Com more than a year ago as a company too cash rich to go under. Now with their tender offer from HP, they've risen from just over $1 to near $8.

How low can the dollar go before someone pulls the plug on our devaluation? I don't know, but with gold over $1,130 as I write, fear the sudden stop.

Thankfully for you, I have been remiss in posting my recent picks, although Monday night has treated us well. Steelers for an easy win last week and if the Ravens can't save their season against the once again Quinn-led Browns, they are truly dreadful.

1 comment:

Anonymous said...


Great post once again. I know you have been pushing Gold and Gld for a while and it is paying off. What are your thoughts on silver (slv). I like it, and I am about to jump in on this metal as well. Let me know your thoughts.

Best Regards,