PTAUAG

Wednesday Outlook: Commodities, Emerging Markets

This trading Treasuries for junk is diluting the value of Treasuries, which the US Government must sell every month. The upward pressure on inflation by the nationalization of this junk will be felt quickly. Look for Grains, Fuels, and Gold to continue their march up. Since the U.S. middle class is now fearful of being unemployed wages will not keep up; look for a quickening Bankruptcy rate. Which means more home foreclosures, which means more Fed purchases of junk. So we descend to emerging market standard of living with each turn of the screw. I wonder if this isn't the goal?

Where are the Markets Headed Next?

The idea that the private equity funds are taking stocks off the market is causing a supply shortage of stocks was first entertained in 1929. I t was not called private equity it was called pools. We know how that worked out.

Winston Smith