Monday, June 28, 2010

Here We Are Again

"Here we are again, I feel the chemicals kickin' in...."
Animal-Neon Trees

So sorry for the prolonged absence, a few life-changing events including a short sale and a move which I will detail here soon. Hopefully a summer lull in patients will allow me some more time to get the BBB rolling again.

Here we are again....the evidence is sufficient to prove that 2009 was a stimulus induced fairy tale. Bank reform, far from Draconian, was celebrated on Friday when it revealed what we already knew it to be. A worthless piece of legislation that will have no impact on curtailing systemic risk. We have hopscotched over the 10K level several times, each jump a little less enthusiastic as we realize it's12 years of negative returns that we're celebrating. Gold keeps banging out new highs and oil has run up 10% over the last 2 weeks. The yuan float brought us half a day of gains before, perhaps as Dr. Michael Hudson has asserted, the Chinese aren't going to simply let us obliterate the value of their treasury holdings.

Oh, and BP has lost $100 billion in market cap with the clock ticking at $4K a barrel. Sorry I missed this short, hope you didn't.

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