Thursday, September 10, 2009

PICTURE WORTH 1,000 WORDS


You DONT get economic revival with the picture shown above, what we need is for all this funny money to actually get INTO the economy and for VELOCITY (money changing hands) to increase, we DO NOT HAVE THAT.
STock market is tracking 1929-1932 Depression, will the outcome be different this time?
We already have the WORST RECESSION since WWII, only 1929 stands as comparison.
FED GOV and STATE TAX RECEIPTS have COLLAPSED and debt is soaring, will the flood of notes continue to be bought at such historic low yields?
JAPAN is STILL MIRED IN DEFLATION, machine orders fall latest report.
GOLD repulsed from $1,000 barrier, and we sit with barely 3% US $ bulls, CAN the unthinkable happen a US $ rally?
With overcapacity and MILLIONS unemployed and underconsuming, how can we illicit inflation? With asset prices tumbling since 2007 the stage is set for inflation?
One definition does not fit "too many dollars chasing too few goods" and then there is the problem of above chart.
HOW LONG can stock rally last? I can't answer that, all we can do is look for clues in the ST....and one IMHO is the direction of the US $
D

No comments: