A Market Stew, from Ken Drees

November 9, 2010 |

1. –qe2 now bad, good, needed, loathed, ok, in a box, maybe not have to do it after all if inflation shows up. qe3 qnd qe4?
2. –china raising rates again, no like qe2, no like Japan, rare earth tough luck, don't tell us about our currency float.

3. –commodities going up and up and up–and oil is lagging, silver was rigged all along (who knew), copper hot, cocoa yummy, and yellow cake.
4. –gold keeps on keeping on and all that broken jewelry already melted for cash.
5. –Bam on the run (is he coming back?) —tax hikes coming, health care costs a coming, no cola to wash down high prices. Bam parties on!
6. –nat gas flickering–Rocky's indicator?
7. –jobs, no jobs, unemployment stuck, 99 weeks over with repubs in, states unhappy, state govs cutting jobs, local gov cutting jobs.
8. –iran, israel—where did that go? Oil back almost to 90.
9. –europe rebails coming? — bailouts ok here but usa qe2 is bad example.
10.–dollar breathing heavy. dollar this - dollar that, everyone (brazil too) talking about dollar. the dollar is linked into every trade on the face of the planet (cnbc).
11.–inflation is low under 2% and Ben wants above 2% shadow stats says inflation already 6% can we handle a fed 2%+ number?
12.–qe2 is a blunt tool and that causes bubbles in other asset classes–stone knives and bearskins—how can we work with these tools?
13.–housing is wrecked. rico coming, can't foreclose, can't sell, can't redo mbs now, fannie needs more money.
14.–"Structural" used as modifier for (unemployment, pipeline inflation, housing problems, lack of gdp growth, dollar woes)
15.–Bonds—do they matter, like deficits? Poor ranting Santelli– get over it Rick.
16.–Stocks are being targeted by the fed for pumping. We all know that this means we are good to go. SPY up 9 out of last 10 weeks.
17.–GM — gotta float the big gov boat. Its simply a question of perfect pricing.
18.–Holidays are coming, year end coming but no one is selling. The market buried the hindenburg indicator!
19.–G20—so what.
20.–Hillary, what is she doing? What about Bam's cabinet —more change coming?
21.–3-5 banks closed every weekend–so what, who cares, old news.
22.–lot of cash still on the sidelines. where is it going—everywhere!
23.–holding cash is stupid says Cramer–a bonehead move.
24.–its a GLOBAL thing now –we are all in this thing, a simmering market stew.
25.–Lets look towards 1st quarter earnings–there is nothing else to think about.





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