Wednesday, January 2, 2008

EVERYONE BETS ON GLOOM AND DOOM.

THE OIL AND GOLD UP AND DOLLAR DOWN BET IS BACK IN VOGUE...

CURIOUSLY TO COUNTER THIS DOOMSDAY BET THE FED WILL HAVE TO "DO SOMETHING" DIFFERENT...IT WILL HAVE TO TALK ABOUT RAISING RATES...AND LETTING THE EXCESSES OF THE 1990'S FINALLY RESOLVE THEMSELVES IN THE MARKETPALCE.

THINGS LIKE LOW HISTORIC DIVIDEND YEILDS...P/Es THAT MAKE 1929 LOOK CHEAP...AND PLUNGE PROTECTION THAT MAKES THE MARKET A "SURE THING" FOR ORDINARY INVESTORS IN 401Ks... AND ABSURD PRICE TO RENT RATIOS IN THE BLOATED HOUSING MARKET.

THE DAZE OF MANAGED MARKETS COULD BE OVER... AND WE ARE SIMPLY NOT USED TO THAT IN THE US...