Sunday, October 17, 2010


"So – in spite of the strengthening “Core to Periphery” inflationary flows bias - dollar weakness has thus far ensured the recycling of excess dollars right back into our Treasury market (guaranteeing at least one powerful U.S. Bubble dynamic). And our politicians have become comfortable blasting the buyers of our debt as “currency manipulators” and the whole dollar-support mechanism as some “beggar thy neighbor” “currency war.” Well, I often ponder how the marketplace will function that seemingly inevitable day when the markets have to start going it on there own – without the comfort of an ever-towering “backstop.” Not easy to envision a winner anywhere in sight."

According to Lowry's there have been 30 (!!!!!!) 90% volume days on the NYSE since last April....I suspect this action is UNPRESCEDENTED in stock market history. 5 straight have been upside volume.

ST correction may be here as we approach previous highs of the market, not far away. Also mentioned was there have been NO cases where 2 10% or more declines have occured during previous bull markets, so we have already have had one this summer.....bulls figure ANY RETRACE will BE BRIEF AND SHALLOW.

We are no longer masters of our destiny....Foreign banking reserves of US $'s have increased in excess of $1Trillion last 12 months! It appears to me we can reflate paper assets, commodities and other economies...but not our own....who can deny inflation in general is not rearing its ugly head around the world.

It is obvious to me, FED has lowered rates to 0% and its been there for 2 YEARS!!!! yet housing barely has pulse, jobs not being created on avg compared to last 8 recoveries, nor has economic here we go buying BONDS to lower rates even more? A 4% 30 years mortgage isn't low enough?

Inmeantime the imbalances PILE UP, at the other extreme are savers, retired people, people who see risk as vile, they got NADA, so they have NO investment returns to spend into economy, SAVERS count too.

WHAT THE FED is trying to FORCE YOU INTO, is RISKY ASSET CLASSES.....OVERVALUED STOCKS......AUDIT THE FED FAILED AS VIDEO SHOWS WHY....we Americans are simply puppets in the game.


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