Thursday, May 20, 2010


AM data on tap, claims.....see if moves market. No way out of this mess until housing recovers, housing cannot recover with hand job stimulus, just borrowing forward demand.
TOO MUCH inventory, too many out of work, too much SLACK in manufacturing, wages flat, housing values depressed, loan demand down, standards tightened, small business confidence weak. Recovery in jeopordy.
Cannot have silver bullet, rabbit out of ASS, try to FIX debt crisis bubble burst by throwing crappy paper on used to be sure handed FED balance sheets (some $2T), now same for SOvereign debt....bailout after bailout.......cure the ills with more of what had ailed us....DEBT!
It either INFLATES AWAY, or it DEFLATES AWAY...pick your poison, both POISON for stocks.
If you made a bunch you want to give it all back and then some? even if just a potential? what are you doing to protect your self and assets? Have you raised cash? DO you get any yield at all? WHAT WILL you DO, what is YOUR PLAN OF ACTION SHOULD, big should the BEAR MKT get confirmed alive and unfortunately well?
Some of my prized subs say just interuption in primary up move....higher highs coming......this is certainly possible as I pointed out opinion matters less than price action. FOR NOW....I'm going to be show resets ROUND 2 are looming both residential and commercial.
LOW LOW inflation....most feel GOOD FOR MARKETS, FED will NOT even consider rise in rates...OK fine, how well has that worked so far? LAST 10 years?
It won't work this time either, IMHO

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