Posted on 10/15/2010 9:54:44 PM PDT by FromLori
John Williams utters his most ruthless words of condemnation not only toward the Fed, but to everyone who is stupid enough to be chasing returns in the face of what is a hyperinflationary collaspe.
Euphoric Inflation Insanity. Buying U.S. stocks because the Fed says it will proactively debase the U.S. dollar is like sitting on the beach in order to get a great view of an incoming tsunami. Any pleasure so derived should be short-lived, when the terror of underlying reality quickly takes hold.
If one were to view movement in the price of gold as a surrogate for anticipated inflation, for example, the issues begin to come into focus. Consider that last night's (October 14th) respective S&P 500, Dow Jones Industrial Average and NASDAQ Composite closing levels were up by 7.5%, 10.8%, 12.1% from a year ago, but the price of gold was up by 29.6% in the same period. Relative to gold, which tends to hold its purchasing power over time -- albeit sometimes in an anticipatory manner -- the S&P 500, Dow Jones Industrial Average and NASDAQ Composite have declined respectively by 22.1%, 18.8% and 17.5% year-to-year. This is against the prospective inflation environment being discounted by the gold market.
(Excerpt) Read more at zerohedge.com ...
” “Use your feelings, Luke. Join me, and we will rule Commodities together as father and son.”
ROTFLOL!!
I’m surprised we even have a stock market left.
Oh yeah...Procter & Gamble sells a lot of cleaning stuff ;-)
Big money is taking lots of enterprises private because of comparatively cheap prices of capital assets and returns, yet the short sellers are convinced that the DOW will fall to 5000. The bond buyers cannot see the plenty they are immersed in, as they stick their heads in the sands.
We live in an era of astonishing growth in real wealth. I defy anyone to try and prove that we do not. Lots of noise and pockets of hurt, but on the whole explosive upwelling in the standard of living of people worldwide.
Historically, and invariably, the third year of a presidential term yields 15-25% increase in stock market indices, as the executive branch gets all in. The shorts and bond buyers are spitting in the wind, and will have their faces torn off, thank you!
“A car listed as “for sale” with a price of $11,000 or 9 gold ounce coins. Just odd. Have never seen that.”
I do the same thing in my ads. I’ll take silver coins at a 15 to 1 ratio face value. You’d be surprised how many people pay me with their old silver dollars thinking they’re ripping me off. Lovin’ it!
Get out before the election.
I expect a lot will, so do not leave it too late.LOL.
That's why I'm shorting the financials for the short term. I rarely short any stocks for a long period.
With The House in Republican hands, the market will go up and money will start pouring back into financials where one should be long.
I don't believe in the Dow 5,000 to 7,000 theories.
Thank you.
Will do.
Can somebody tell me how to make money on this?
Besides, parking all of my money in savings or CDs isn't going to pay for that $20 per loaf bread and $30 per gallon gasoline in our near future.
Dan Sullivan, who puts out the Chartist investment newsletter, is quickly closing in on a buy signal. (been in MMF since mid May) Over the past 20 years I’ve been monitoring his timing signals, they have been excellent, turning some $100k into $875k in his “actual cash account” over this period, bypassing lots of big declines, like in 2008.
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