PALOOKAVILLE FINANCIAL stardate : capitulation day+91
...in palookaville we take Christmas seriously...
beulah : wot sort o xmas is it when a sanity rally aint been allowed ta git goin?...
laverne : evva yeah a shocks an scares giz it a big finish...
...ta mek alla suckers appy...
...nah it done gone sad an dismal...
beulah : big fat red an white git gone run off wiya goodwill...
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zooneh : chill aht sista!...yo jumpin a gun innit?..
paintremover : jus look atta chart gels...yo stash is rallyin...so far!
NB chart is uk based and funds reflect the effect of currency movements
'FLATION GONNA FLIP
ambrose : ..."Clearly the US is already in the grip of debt-deflation. "The obvious conclusion is that the Fed should print money to purchase private sector assets so as to drive up their price," he said.
Fed chief Ben Bernanke does not need prompting. He made his name as a Princeton professor studying the "credit channel" causes of depressions. Now fate has put him in charge of the channel.
Under his guidance, the Fed has this week pledged to "employ all available tools" to stave off deflation - and damn the torpedoes. It will purchase "large quantities of agency debt and mortgage-backed securities." It will evaluate "the potential benefits of purchasing longer-term Treasury securities," i.e, printing money to pay the Pentagon.
Put bluntly, the Fed is deliberately stoking inflation. At some point it will succeed. Then the risk flips quickly to spiralling inflation as the elastic snaps back. There will be a second point of danger.
By late 2009, if not before, the bond vigilantes may start to fret about the liquidity lake. They will worry that the Fed may have to start feeding its holdings of debt back onto the market. The Fed's balance sheet has already risen from $800bn in September to $2.2 trillion this month. It will be $3 trillion by early next year.
"The bond markets could go into free fall," said Marc Ostwald from Monument Securities.
"The Fed went into this all guns blazing just as the Neo-cons went into Iraq thinking it was a great idea to get rid of Saddam, without planning an exit strategy. As soon as we get the first uptick in inflation, the markets are going to turn and say this is what we feared would happen all along. Then what?" he said.
New Star's Simon Ward said all three measures of the US broad money supply are flashing recovery. M2 has risen at annual rate of 17pc over three months.
"It has all changed since the Fed began buying commercial paper in October. If the money supply is booming at 20pc in six months, inflation will become a concern. Given that public debt ratios are already on an explosive path, we risk a debt trap," he said....telegraph
vince : is he right musky?
and not as a commentary on their investment performance. no opinion is offered here either for or against equitable life as a pension company...
...they just happen to have these charts...
...which i find very helpful...
...when comparing sector fund performance...
...THIS AINT ADVICE AN WE AINT IN BUSINESS...
...WE JUS SUCKERS LAK YOU...
...PISSIN INNA WIND...
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