LIQUIFY YOUR LOVE

Justify your love, the FED is back in full swing to liquify mode, no matter the consequence, and it may be back to stock market asset inflation from housing inflation.Dow and SPX likely now to push to next closest high and test.

Broad money supply (M3) expanded $10.2 billion to a record $9.913 Trillion (week of August 29). from Doug Noland Spet 9th no matter what Greenspan says,just pay attention to what he does@!!!

Even though I have posted essays to the non viability of hydrogen using current methods to extact hydrogen, as it is MORE COSTLY takes MORE FOSSIL ENERGY which in turns creates more pollution (read article by Beard in Sept Car and Driver) the specualtors have been hyping these alternative energy stocks as oil and gas have soared.

96% bullish sentiment towards energy stocks, not much room left.

Market rallies in face of tradegy, but it is hope for business to rebuild, not from anything else except they feel NOW Greenspan MUST stop raising rates.

from Q and A section of EWT, courtesy of, CAN THERE BE A KATRINA BULL?

The New Orleans disaster will prompt a large fiscal stimulus. Could the $100+ billion they will spend on hurricane relief in the months ahead halt the deflation? How do you see this cash inflow affecting the U.S. economy and investments?


Responder: Steve Hochberg
Date: 9/9/2005
The rebuilding of the coastal infrastructure will not compensate for its destruction by "growing the economy," as some contend. The French economist Frederic Bastiat exposed this erroneous idea over a century and a half ago. (Type “broken window fallacy, economist” into Google search for the reasons explaining why.)

Bush rating below 40% and FALLING. Consumer confidence FALLING. Savings rate below 0 and FALLING. Disposable income falling, as gas prices tear us a new one.

Everybody is rushing to donate, more disposable income gone. The American public is generous and caring at large.

Did anyone notice the weakness in Transports, they have declined as DOw and SPX have pushed forward a MAJOR non confirmation is taking place a Dow Theory Bugaboo!

So though most do not agree, Katrina is not a boondoggle to economy, and when asked by LArry King a BUsh official of course didn;t directly answer how it would be paid for.

High energy costs are even hurting gold producers profits! Gold is at a crossroads and I feel one way or another will violently show its hand very soon!

Inflation is trickling into every orifice of economy but it isn't the kind where too much money is chasing too few goods it is oddly too little money chasing too many goods (deflationary!!!) yet those too many goods are increasing in price or the profits of sellers is declining.

We are going to have a point where inventories back up across the board if consumers cut back, and if they don't cut back how do they magically fill the void?

Truckers of everything are adding huge fuel surcharges to everything they move.

Traders are back and have given the indexes a ride, but remember, Transports are not coming along and you better ask why.

Duratek