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THE FLOOD OF LIQUIDITY CONTINUES

THE FLOOD OF LIQUIDITY CONTINUES
November 16, 2009
 
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Economic reports from Japan came in “better than expected”—check.

The Fed/Treasury and global monetary authorities choose low interest rates—check.

The dollar “carry trade” continues apace—check.

All assets then inflate—check.

Cynically, the idea that major US government spending programs won’t occur is bullish—check.

The only thing that isn’t inflating are US jobs and Bernanke’s persuasive abilities (a la, “we support a strong dollar”…snicker)—check.

Today bulls busted loose with another Monday panic buying binge.

This leads us to the chart image posted above.  What is it?  It’s the Zimbabwe Stock Index showing how stocks can become easily inflated when the underlying currency goes in the toilet.

Volume was healthy on a rally for a change but not spectacular.  Breadth was gangbusters in a positive way.


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