ebworthen

Wall Street Breakfast: Must-Know News

Oh dear...

I see another bubble forming.

CRE being kicked down the road and lower rental rates, asset reflation based on stimulus money and FED giving out free dollars and koolaid to the banks and Fannie/Freddie and FHA, "money on the sidelines" still on the sidelines or going into gold and TIPS and money markets.

I keep looking back at the same scenario in 1929-1932. I hear people say we are in 1937 versus 1930. I don't see it.

Perhaps we are in a "recovery" that will maintain the gains but I don't see it. What I see is a market and asset reflation greater than the market pop of 1929-1930 precisely because of the actions of the FED and stimulus which occurred faster and to a greater extent than 1929-1930.

This would mean that the downward grind will be that much faster and greater than 1930-1932 and that is truly frightening.

Pride comes before the fall.

Equities Roundup: The Wizards of Oz

Hmmm...

Earnings up on what, lower dollar and higher gold?

Earnings higher on layoffs of career employees?

Earnings higher on poor outlook for holiday shopping?

How big are we going to blow this bubble before it pops?

Honestly - I'm happy making money in gold and TIPS because even if the market crashes, I'll do better than equities and money markets. If the market crashes I'll still do better than money markets, and I won't be pumping up those illicit equities - I just can't stomach giving Citi or GS or GM or AIG any more money than has already been stolen via future taxes.

Smiles :-)