09-20-2012 08:00 AM
Just when you think it can't get any crazier, it does.
Decent bounce back in commodities yesterday. Except for oil which is still taking in the shorts again. Stocks are lower. Gold is lower. Corn, wheat and beans all lower. The world is still contemplating whether or not this QE garbage is going to work. I say it won't but the FED has a few more dollars than I so I wont fight it. Get on board the asset classes that will rise with inflation and a falling dollar.
SWAGER - Silver, wine, art, gold, energy and real estate. A few of those are fairly illiquid but you can't fight city hall.
09-20-2012 08:41 AM
Good morning Scot, Can you explain Mortgage Backed Securities?
And Digitizied money printing? My conundrum is, if the wrong things happen
is tangible money required to cover the first question?
09-20-2012 03:38 PM
If the wrong things happen, whether it may be with digitized money or conventinal currency, there will be some penalty to pay. The government is going to print money until they see growth. Arguably, I don't see any healthy growth for 3 to 5 years. The governments actions to date have done very little to help the economy in the short term and could have very harmful affects in the longterm.
QE is just a 'cute' way of saying 'we have no idea how to fix this mess we are in'.
09-20-2012 04:26 PM
I assume the QE stuff is being flushed through the commodity exchanges, over and over this week.(playing with the funds)
If that assumption is anywhere close to right, Scott, are we going to see ever increasing shock waves? Is there no place else to put the extra $$s? Is this our best indicator of how weak our economy is??????