Apparently happy daze are queer again on Wall Street...
The GREAT MOMENTUM AND MARGIN MARKET OF 2007 continues on it's course to disaster...
I would call this the TITANIC MARKET... because the faster it goes...the more likely it is to hit an iceberg.
This M&M market will rise till it falls...BUT this could be the last harrah for the dollar...
When you strip out all the hype and mythology...the US is economy is a hollowed out shell. The dismal consumer is being offset by massive FED liquidity provided to the speculative classes...hence the weak dollar.
HOW ELSE CAN YOU EXPLAIN THE BIGINCREASE IN MARGIN DEBT...?
A HUGE INCREASE IN MARGIN DEBT ALWAYS COMES BEFORE THE FALL...
THIS IS THE RISKIEST BUBBLE SINCE THE GREENSPAN DOTCOM DEBACLE...
ONLY THIS TIME THE MACROECONOMIC SURVIVAL OF THE US CURRENCY AND ECONOMY IS "IN PLAY".
TO WIT: THE DOLLAR AND IT'S TOXIC RELATIONSHIP TO COMMODITIES LIKE OIL AND GOLD...
LIKELY THE FIRST CRACKS IN THE MOMO MARGIN STORY WILL COME ON FRIDAY WITH THE DISMAL JOBS LIE WHICH COULD BE SURPRISINGLY WEAK...
AND THE CONSUMER SPENDS MORE MONEY ON GAS...THAN EATING OUT AT RESTURANTS AND BARS.... A SECTOR WHICH IS THE MAIN JOB CATAGORY THAT'S BEHIND THE BIZARRO "MYTH OF LOW UNEMPLOYMENT" IN THE US.
