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Andy answers everything: this time "inflation and the Fed's loan origination as money good"

How can it be both way?  We all know the reason why inflation is near zero is because real estate continues to collapse.  Needless to say "the costs associated with holding said real estate continues to soar."  At the same time the Treasury Department is still claiming being "money good"--which may be true of the holdings of MBS at the Fed and may even be true of the vast majority of bailouts save for GM and Chrysler which have been complete boondoggles.  Needless to say "those trillion dollar deficits speak for themselves" and "even CBO has admitted those will not decline for the foreseeable future."  That's government speak for "forever."  The Fed can't have it both ways:  success on inflation has come at the expense of another leg down--perhaps a significant one--on the real estate front.  All the King's horses and all the King's men couldn't change it during the collapse--and now that recovery is well underway it is simply not credible for the Fed to claim "money good" anymore.  Needless to say "defensive stocks have been dead money for a decade now."

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Additional disclosure: what the Fed giveth interest rates takeaway. The Fed is trying to beat the House--and is losing just like the rest of us.