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"The GOOD NEWS = The DOW just hit 14,000! The BAD NEWS = A cup of coffee costs $18 (in US $$$)

Wheel barrels full of cash to buy bread, sound familiar?

Germany 1944.

In 2006, Americans had $6.7 trillion in bank deposits and a net worth of $62 trillion. Their cash was 10.8% of their net worth. Today Americans have $7.8 trillion in bank deposits and a net worth of $50 trillion. Their cash is 15.5% of their net worth, which has fallen 20% in 2 years. Anyone who think this is hyperinflationary is an idiot. The increase in the cash line item is one twelfth the size of the drawdown in the other asset line items. That is never going to result in reckless repudiation of the currency.

Some men are simply ideologically committed to the inflation scenario. They are exactly the ones who blew dollar prices into the stratosphere and created the crash. Houses are not worth more than the mortgages written against them. Oil is not worth $147 dollars a barrel, because dollars are not confetti. Pretending they are and going short them, with debt, on an epic scale, will not make them worthless. It merely gets those so betting, their own heads handed to them.

Talk about irrational exuberance... the current rally makes the .COM sham seem reasonable. Don’t get me wrong... there is no technical end (to the rally) in sight.

And, remember... as Larry Kudlow recently said on CNBC, “... the market is a forward predictor of the economy.” Well... you know... except in 1928, ... 1986, 1999, 2006-Oct.07.............. Genius!

Coincidence that the current nonsensical stock market rally is fueled by liberals (in Washington) and the last by left-coast silicon valley loons (in California)?

Full disclosure. I do constantly hold a small-$ short option position the week of options expiration. Cheaper then loto tickets... with a more likely payout.