David Roskoph

Showdown at the Federal Reserve Corral

Spot on! Although the corraling has magic helpers to assist in the temporary insanity. Do you realy think the public races the markets around? How about seasoned managers? Of course not. The market is there, center stage, to both entertain and fleece. The Bull and Bear raids of the pre-SEC days are back with a vengance - conducted by whom? Can anyone even bring themselves to pronounce collusion?

U.S. Economy Stabilizing: Longer Term Outlook Shows Dramatic Improvement

Mad,

People are unchanged throughout the ages. They need to hope and that manifests in investment. There is presently no alternative: interest rates - nil, interest in real estate - next to nil, interest in precious metals - tepid. All that (practicically) remains is equities. Logic be damned, emotion will triumph. It's going up.

The Truth About Unemployment Numbers

Steve,

Imagine how lovely the country if they only stayed receptionists; the lawyers I mean.

An American Renaissance: Capitalism Is Alive and Well

Craig,
Indeed! Moreover, the pursuit of that fallacy is why we are bankrupt.
Thanks.

On May 21 05:34 PM Craig W wrote:

> " . . . but eventually every citizen must understand that you cannot
> have complete security and capitalism at the same time."
>
> The underlying premise of your statement is that there is a system
> that offers complete security. Hogwash.
>
> I say: ". . . but eventually every citizen must understand that you
> cannot have complete security."

The Seduction of America

Very, very nice. Although seduced into subsidizing an oligarchy for 30 years with expanding financing, things have hit an end point. Every regime understands that it's the guy with nothing to lose that breaks things and we're dangerously close. Now we will rediscover our ability to produce (and not consume) things the world needs, not just simulate prosperity. Free market captialism is too free when each bust ends with a perp-walk parade.

The Financial Crisis Is Escalating Out of Control

It was a modern depression and now it is a recovery. The damanage was not stemmed, rather it was accelerated. 10 years of banking failure and reform in as many months.

There is no intrinsic value to paper money, and the world is awash in it. Our sawbuck is the firmest paper on the planet, despite our fiscal dalliances. The world needs a captain of capitalism and we are him, otherwise they'd mutiny and our dollars would be dispensed in rolls.

As ugly and untrustworthy as it may seem, this is a recovery. Capitalism HAS survived albeit in a slightly different form. There is nothing to replace it and the world so voted by buying up our Treasuries. Next they will buy up our equities while the academicians continue to expect anarchy.

Pension Shortfalls: Yet Another Time Bomb

The most productive change produced from this modern depression is the adjustment to retirement expectations. Retiring at 65 is not the 11th Commandment. Indeed 65 hasn't been meaningfully adjusted since it was incepted. In 1935 American mortality was only 58! This "adjustment" has exposed the lie of a financially and medically subsidized, 15 year of retirement. It just ain't so. The challenge will be to re-introduce all those formerly retired folks back into productive roles.

Market Tales Get Taller

Peter it's the rationalization that is getting taller. This is a deflation and dollars will continue to go up.

The market has lost 7 trillion, real estate, 4 trillion and all our other toys 1 trillion. That's 12 trillion versus the 2.5 government fiat. It's not even close.

Dollars have gained and will continue until at least parity with the Euro.

Visualize a dollar compared to a 2007 house at $240,000.
Now the same dollar is much larger because the house is only worth $195,000. Same for the market, SUV's etc.etc.

The world is awash in fiat and they are all deflating; it's relative.

The Great Consumer Crash of 2009

James,

Brilliant! I wish I could have said it better myself. seekingalpha.com/artic...

Wake Up America, You’re Sinking

Daniela,

I am an American by birth and by choice. I have proudly represented her as an athlete and served her as a military officer. She is off course and listing. I do not want her to sink.

The U.S. Dollar: A New Accord

Picking the dollar to rise from the ashes has as much to do with the 6 trillion of deflation that has already occurred in equities and real estate. The countervailing 1.5 trillion in fiat will not compensate. We are at a tipping point where more fiat may well fell the republic ala Weimar Germany circa 1923. Bennie and Hank get it and will silence the presses before dollars are dispensed in single or two ply rolls. Deflation occurs when credit collapses and takes the float of dollars with it. Oil and commodities are only a side show.

Ten Bear Market Phases, Current Edition

Mish,

You are 1000% spot on. The Federal Reserve has overseen each and every bubble and debased the currency to near toliet tissue status. They have facilitated the migration of wealth away from the middle class through the nefarious tax of inflation and somehow deserve a promotion? Few get what's truly at stake by destroying our currency. The chasm twixt ultra rich and everyone else has never been wider and the veneer of civility may well be tested if the inflation genie ravages what's left of the "everyone else" population. Either they will "stop the presses" and allow deflation or hyperinflate America out of contention.

The Fed's Trojan Horse Offering

We have been living on a borrowed standard of living built upon financial engineering and debt. Instead of allowing a deflation to correct the excess, Ben Bernanke is trying to bluff his way out with a printing press. He's turning the dollar into yet another fiat bank failure. When the world sees how little we care for our own currency, is there any wonder they use it to clean their shoes?

Global Inflation Rates

Thank you.

CPR for the Dollar? Try DNR

The Federal Reserve provides bread (while the administration provides circuses) to keep consumers pulling the cart; their primary duty as Americans.