Monday, December 20, 2010

On the Brink of Big Badness

When CBS News is calling socialism "unsustainable", it means the jig is officially up. Most of the 50 states are bankrupt, and there's even talk of massive municipal bond defaults. In other words, neither the overvalued stock market nor the house-of-cards bond market will be safe havens. A big pile of fictional wealth is going to disappear one way or another.

Friday, December 10, 2010

Socialism Sucks, Part 3: Centralized Planning

Article: Al Gore reverses view on ethanol.

Not so unintended after all: the whole point of Obamacare is to drive private insurance companies out of business, leaving us with one big socialized health-care system.

Wednesday, December 08, 2010

Fed charmain caught in a blatent lie

If the Federal Reserve Bank thinks that printing money is good for the economy and ultimately helps the average citizen, then chairman Ben Bernanke should gladly admit that he's printing money and bask in our gratitude.

But when the Fed prints money and lies about it, it does not inspire confidence.

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Sunday, December 05, 2010

Flat top?

The S&P 500 index has been bouncing back and forth between ~1180 and 1225 for the past month or so. (The earlier rally stalled as predicted.)

Stock market sentiment is still quite optimistic, so I doubt that a new prolonged rally is coming any time soon. I think it's more likely that the S&P will dive below 1180 next, but lately I've been wrong as often as I've been right.