Prudent Man CFA

The Great Reflation Continues

Instead "clunkers for cars" we should have given Treasury securities for GM bonds so that the retirement funds holding them could deliver the promises made to retirees.

It is amoral to reward people for doing nothing while those who produced during their lifetime get stiffed. As these rebates, like all U.S. Government debt are not collateralized they are backed by workers earnings that may never happen.

Risk Taking Returns to the Markets

Risk never left. Doing nothing is a risk. Life is a risk. Unfortunately, we don't know the risks and in most cases don't know the magnitude. Options help insofar as magnitude is concerned.

Risk Taking Returns to the Markets

Doesn't measure the magnitude of the risk compared to the highly questionable gains.

The performers on financial t.v. are once again talking about a nascent recovery. They, like a stopped clock being right twice a day, and we are in a recovery which, show nothing but wishful thinking with little to substantiate what is going to grow corporate income that, if improves, will be overly taxed thus expanding government ownership at the cost of private property.

We have our choices. If you see higher interest rates fixed income (if the Fascists don't continue to abrogate the Law of Contracts) will compete with government controlled equity income. If you see lower interests and continued deflation cash will be worth more than debt or equities with less risk.
All those who are attempting to sell their positions with complex strategies are making the simple complex.

I keep reminding myself the so-called, media manufactured "smartest guys in the room" on Wall Street were greedy idiots. So much for great intellect with stupid execution. Greed blinds rationale, a fact we all must deal with and control to stay in the game over the long haul.

Fed Pushing Liquidity Back into the System

A World Wide Recession caused by unsustainable leverage being cured by unsustainable government borrowing. If one believes in Santa Claus, e.g., politicians, this may sound like a good plan. To me it is economic suicide that will lead to Socialism.

Because many in this world are so accustomed to getting their every want through little effort (credit) they now run to the government for salvation. Free Enterprise, like our Military Defense, is only for the fittest of which there are few today.

Politicians can try to redistribute the wealth all they want but it will, in time, revert to the strongest and most ruthless which may not be its rightful owner. It could be bloody!