Asbytec

Why 'Buy American' Hurts America

Does China make tractors? Since when is buying American a bad ting, I mean since the 80's when our cars sucked.

Stocks, Bonds, Commodities and Currencies: My Predictions for 2009

Sean, thank you for the clarification. Yes, many indicators, like unemployment, are lagging indicators.

Ron, I believe you're right on both counts. And furthermore, it will be a good long time before anyone buys MBSs...at least in their current form. There will probably be some regulation and rules on transparency forthcoming. Also, on CDS and other instruments. Especially, in the light of the Madoff scandal.

Personally, I hope this means the Fed will actually govern (tighten) the money supply produced on such instruments. If so, I suppose this will mean lower credit limits for many consumers and tighter credit all around. I guess that will be a good thing.

Stocks, Bonds, Commodities and Currencies: My Predictions for 2009

So, let's see. The Fed has reduced interest rates to zero and is flooding the banks with money. That hasn't even begun to slow our descent into recession. Jobless claims are way up.

And, there is deflation (at least targeted deflation.) Banks are hoarding cash despite Fed's attempts to force them to lend. But, they are not lending and folks aren't borrowing, especially in the all important housing market.

We're firmly in recession and losing jobs with falling home prices. Banks are strapped and don't trust each other. The Big 2 are forced into restructuring and may have a plan to do so in 90 days, but will not be near implementing such a plan. Does this sound like something we can just "snap out" of by mid 2009?

Even if the credit markets begin flowing by June, what about the looming period of (hyper) inflation? Man, we have a long way to do and a lot of work to do before things stabilize.