junkyarddog

Options Trader: Friday Outlook

These are crazy times, even worse than those of South America in the 80's. Remember their inflation of over 2,000% a year? Back there their goverment exausted all intervention options; all possible interventionists ideas ever written in all economic encyclopedias of the world. Of course, nothing worked for them, even changing their currency name several times AND declaring martial laws to freeze prices! What worked for them, starting in the 90’s (specifically Brazil)? It’s simple: their government stopped spending and printing money.

These are indeed scary and desperate times. All because of greed, out of control spending, and addiction to gambling (derivatives anyone?).

Thanks again for writing your articles free of charge to us, and shedding some light amidst such insane times.

Don’t Buy What Wall Street Is Selling

We live in a debt ridden society and once in a while forest fires are a good thing to clear up the forest. We allowed too much worthless brush to creep in, now the burning will be intense until it clears up.

Like firefighters, the Fed can't put out the fire, but dig trenches only hoping to containi it. Well, we may need to simply let it burn.

The major risk to an out of control fire is high oil prices, which adds fuel to the fire (wow! pun intended). If we get a break from high oil prices for a while it may help the markets to re-align themselves without depression-era like crashes. Regardless, like surgery, it'll be painful but life saving.

This is all tough, a rough road ahead, but a good thing in the end.