Sunday, August 30, 2015

Protection from Correction

Many promoters have been saying we need to own gold as protection from everything from crashes to inflation. Gold has sunk like the proverbial lead balloon. Others have recommended investing in foreign markets. How has that been working for those who socked money away in Red China? Money in US banks is earning virtually no interest. I would still rather maintain strong cash positions even if holding cash yields nothing than risk losing big in stocks or commodities.

Saturday, August 29, 2015

Free Public Entertainment

Tonight, I attended a "free" concert in the park. All the taxes the audience pay do not count. I would rather pay admission and have low taxes than have everyone forced to pay more in taxes for spectacles that only a small percentage of the community actually attend. Beyond the cost, another troubling aspect is that hundreds of people gathered with no visible security in this age of terror. The music was good. A number of the concert-goers danced. It occurred to almost no one that there is nothing in life that is free and by crowding in like sardines, the audience placed itself at risk.

Friday, August 28, 2015

Wall Street Pothole

I will not pretend to be able to guess the day to day direction of any particular stock. I can not fortell the direction of China's market. I will say I have no confidence in US political leadership. I think the influence of the Fed is waning. Whatever clout Greenspan and Bernanke had, Yellen has squandered. There is no room left for quantitative easing. US stocks may have a little room to rise, but it is much more likely, they will fall, perhaps precipitously.

Thursday, August 27, 2015

Just a Stumble

Are US stock markets back on solid footing? Is the "correction" over? Was it a correction at all? Was the massive decline a harbinger of recession or, worse yet, a depression? A one day resurgence was certainly welcome, but is by no means proof of recovery. I do not pretend to know which direction the market will go, and I am not short in US stocks, but I will say I am maintaining a large cash position relative to my holdings.

Wednesday, August 26, 2015

Dead Cat Bounce

It looks like there was more cowering than covering in America's markets. I see very little reason for optimism as Red China is not improving. World markets are not stabilizing. US markets see no leadership from the Fed or the White House. How low will America's stocks go? If I knew that I would be as rich as Warren Buffet, but then again, I do not have the government granting me any concessions to build my fortune. Most are suffering in the crashing markets, except those who have a "special" relationship with the regime.

Tuesday, August 25, 2015

Correction or Depression

Yesterday's bloodbath in the markets may be a one-off or a harbinger of terrible things. If it is a temporary hiccup, it is one that claimed a trillion dollars or so of wealth. If it is the opening salvo of a cannonade of economic horror, it could signal the start of a panic. It could deepen recession, although manipulated figures pretend that we are not in recession. In the worst case, it could be the start of a 1929-style great depression. Time will obviously tell whether this is a blip or a catyclysm, but it will not be Washington or the Fed that saves us from anything.

Monday, August 24, 2015

A Looming Depression

With Red China's markets collapsing, is the world about to enter an economic depression? I fear it might be. Oil prices have crashed. While motorists may end up paying less at the pumps, this is not necessarily good news as widely-held oil stocks are also sinking. The US Federal Reserve is out of arrows in its proverbial quiver to stabilize the US economy. Barack Hussein Obama is clueless as to what might turn the economy around. The world was able to absorb the fall of Greece, which is a small nation with an economy that is not crucial to the world. The global economy will be crushed if Red China does not rebound.