Conclusion for those who won't read the whole tirade:
We are in the early first round of what will surely be a challenging period of heightened financial instability and uncertainty. The financial backdrop is changing, although I would expect fits and starts, unpredictability and global market bouts of manic-depressive disorder. It is, however, often a case of crises taking much longer than one would expect to develop, only to unfold rather quickly once in motion. Still, recent views of a U.S. and global slowdown, if they come to be supported by economic developments, would be expected to take some pressure off of the U.S. interest rate markets. I am at this point skeptical that growth is poised to slow quickly and sufficiently enough to contain rising inflationary pressures (look at bank Credit!). More likely, I expect continued pressure on interest rates and the leveraged players. That the Leveraged Speculating Community is arguably immersed in The Most Crowded Trades in History leaves one apprehensive. U.S. asset markets have become addicted to low rates and abundant liquidity. The global economy and markets have similarly grown liquidity dependent. Today’s market instability and resulting heightened risk aversion are Speculator and Liquidity Unfriendly. And there is always that specter of a whiff of smoke being sniffed in the exceedingly crowded theater.
ALSO Broad money supply (M3) declined $11.8 billion to $9.49 Trillion (week of March 14). Year-to-date, M3 has expanded at a 1.3% rate.
The FED wants YOU to believe its policy is for TIGHT MONEY But it is not. Raising a paltry .25 pt each meeting is a JOKE! NOT nary keeping up with inflation, all the while they keep PUMPING the system with MONEY! JUST LOOK at all the bank credit in Noland's report.
ALL we get from officials/FED is LIES and manipulation. They were in the market BUYING TREASURIES in latest week, to try and KEEP long rates down? Or to use that money in their operations to keep PUMPING the primer. JUST look at last weeks housing data STILL ON FIRE, are they really trying to cool that market?
My companies Health Care plan going up ANOTHER 20% even as the bastards made $100 M last year.
Have we lost count of the multiple bubbles formed? THE POP will be heard round the world.
ME, I keep rasing cash levels, I will be prepared to ACT when REAL VALUES appear again.
Duratek
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