ShivaJim

The Dow: Ominous Parallels to the 1929-1930 Era

I like the article; some good points. Caution taken.

The counterveiling wisdom is, "don't fight the Fed." In this case, I don't think the Fed will relent until it has saved the housing market. That is where all the bad bonds China, Saudi Arabia, Russia, Iran and Britain has. I think that is an international agreement. To get the housing market back, and the jobs market back, we need "a bit of inflation," at least of housing.

The question is, how much in mortgage debt can the Fed balance sheet take(?) as no one else is buying them - or at least that's what a fellow told me. It makes sense as I don't see China, Britain etc, etc., to continue buying bad bonds.

Is the Fed Losing the Mortgage Rate Battle?

The Fed doesn't give a damn about the middle class home owners. They just care about the rich Wall Street brokers and bond traders.

Is the Recession Really Over?

Look at the numbers, guys! We're talking 500-600 down from 2100-2200 or more. We're getting excited about a quarter of the volume. And this is the height of building season here!

Worst-Case Scenario for Geithner Is Here

It's "happy days" show time. Upon thinking about it, I think the hedge funds and investment banks see the best way to unravel their derivative positions is to bid up the stocks and sell them to the retail buyers (you and me). It's a pump and dump scheme. I think there is collusion. I don't know when being short will work, but I'm buying MZZ bit by bit here.

The Case for Getting Short

I like charting, and will be following author. What we are charting is sentiment. What do the charts indicate as far as sentiment goes. The parabolic configuration indicates over exuberance. "The recession is over, the recession is over!" Is it? I think car sales are a good indicator and they are still miserable. But the key is what is happening to interest rates. The Fed was keeping them low by buying treasuries. Now institutional buyers are complaining they are reigniting inflation and a collapse of currency. "The treasury auction did not go well." China is vocal here. The recovery is based on low interest rates, especially for homes and cars. If interest rates go higher, the recovery will collapse and we will be back in the soup again.