LAST WORD WEEKEND WIT

OK one little post!

From Doug Noland Credit Bubble:

Although bullion jumped $5.55 (to another 17-year high), the HUI gold index declined 1% this week.

Treasuries were unimpressive in the face of weak global equity markets. For the week, two-year Treasury yields added one basis point to 4.18%. Five-year government yields rose 3 basis points to 4.22%. Bellwether 10-year yields added two basis points for the week to 4.35%. Long-bond yields were about unchanged at 4.57%. The spread between 2 and 10-year government yields widened one basis point to 17.


More:
Broad money supply (M3) jumped $20.3 billion to a record $9.984 Trillion (week of September 26), with a noteworthy 19-week gain of $359 billion, or 10.2% annualized. Year-to-date, M3 has expanded at a 7.1% rate, with M3-less Money Funds expanding at an 8.0% pace. For the week, Currency added $1.3 billion. Demand & Checkable Deposits jumped $13.6 billion. Savings Deposits dropped $21.0 billion. **(WOOOOOOOOFFFF ???savings dropped equal to Fed goose?)

And THIS from Doug:

There are major Financial Sphere and Economic Sphere developments in the offing. There’s too much Credit being created and much of it misallocated. There is, as well, excessive and destabilizing speculation. These Credit Bubble facets - seemingly innocuous for quite some time - are finally imparting conspicuously deleterious effects on an increasingly maladjusted Economic Sphere. For good reason, the Fed is getting nervous. No longer can Federal Reserve and Wall Street analysts simply ignore Financial Sphere developments. And global central bankers have at this point surely given up hope that the Global Financial Sphere would commence the process of returning to some semblance of order and sustainability with the imminent slowdown in U.S. housing finance. Not only has U.S. mortgage growth accelerated this year, global central bankers are today facing the prospect of a global energy crises and systemic liquidity-induced asset Bubbles. They now likely recognize that ultra-loose global monetary conditions have lasted far too long and accommodated precarious excesses.

It’s going to be a very interesting – and I’ll bet tumultuous - fourth quarter. Central bankers are nervous connoting that the leveraged players are anxious. And this week did have the feel that the leveraged speculating community “boat” began again to rock back and forth a bit – the energy markets, the currencies, global equities, gold… And when the boat starts to rock and we know that there are too many on the boat and too many all huddled together for safekeeping, well – unexpected things are bound to happen.

**OK Now did you catch 48 hours special on the "Housing MArket"?? last night??

It talked about how speculators or FLIPPERS have gone wild. LIke a Ponzi scheme, someone/s will LOSE, the last one's in and the idiot banks who loaned them. HOW EASY "to buy a CONDO pre construction and sell for $100K profit when complete..." FLIP FLOP FLIP FLOP!!!!

ALL this created by the easy money FED policies, extreme bubble behaviour like the bubble tech salad days, hey anyone can do it! and they are!!!

SO, maybe not In Montana, but in many areas, specially the coasts, prices are being driven up unnaturally by these flippers and it can't last in fact it is probably over. And this activity gives a false reading IMHO to money supply.

And it has caused an OVERSUPPLY and OVERBUILDING to occur in certain areas like Miami CONDO WORLD!

DUCK AND COVER, GET THE F OUT OF THE WAY of the coming finacial TSUNAMI, BLACK HOLE and EBOLI crisis. Worry about bird flu?? Better worry about our banking system and the $10 trillion in dirivitives.

THE action in home market has been unhealthy, and hasn't even led to normal wage growth this time around. Now you see savings continue to leak, not a good thing....Martha.

D