Quick Update

First an apology for those of you still checking in…just a combination of busy, lazy and burned out of late.

My views on the economy, the markets and the world remain unchanged.  That is to say, I continue to believe we’re headed down a very unfortunate path.  The near term stats don’t do as much for me as do the smoke and mirrors by which said stats are being produced.  I could highlight numerous news items since my last post, but I’m becoming bored with what seems like the economic equivalent of Jerry Springer.  Things are becoming so mind-numbingly ridiculous, it’s hardly interesting anymore.

From a geopolitical standpoint, our upcoming elections are an embarrassment.   I have completely lost my patience with the majority of people in this country who feel that our self interests will be best served by continuing to behave as thoughtless drones, easily manipulated  by farcical statistics produced by either the left or the right.  Newsflash:  narrow-minded thinking is going to kill this country.

Further from Mayberry, recent tensions in the middle east should clearly be a concern to all of us.  This is the type of powder keg event that could change everything overnight.  There are so many illogical elements that I typically try to avoid wasting time trying to figure it out. While I’m interested in understanding the ramifications of an Israeli strike on Iran, I find the whole fanatical religious landscape too annoying to navigate.

I’ll sign off for now, but didn’t want anyone assuming that I’d receded into a Disneyesque  realm in which everything’s good….it most assuredly is NOT.

TD

If Ignorance Is Bliss…We Should Have Ourselves A Very Happy Society.

This has always been a frustrating thought for me.  The idea that anyone (even a complete joke like Perry) can get behind a microphone, recite a few stats and confidently make conclusions is beyond annoying to me.  As usual, I will ask that those jumping to the conclusion that I am a left wing nut please get back in line and continue to look straight ahead.  For those interested in thinking, I highly recommend the following Rolling Stone article:

How Scientific Ignorance and Ideology are Killing Democracy

Wednesday Reads (delivered Tuesday evening)

I’m starting this off with a heavy hitter.

What’s the McRib made of, anyway?

I’ll keep hitting on this, but heads up.  This is going to end badly…the math is fairly straightforward.  Having said that, it is always possible to delay the inevitable via massive manipulative measures by an out of control government.  Case in point:  the US treasury market.

Penn State Pricks the Student Loan Bubble

However it’s spun, this will be a disaster.  Unfortunately, it may be the lesser of two evils.

Israel squares up to Iran: That’s right, Iceman. I am dangerous

I know this has been plastered all over Tuesday’s news, but in case you missed it:

OWS Protesters Lose Bid to Return to Park

Favorite quote of this article:  “It is not like the committee has been asleep on the job here.”   I’m sure Bullard is an intelligent individual, but it’s hard to imagine a more lackadaisical take on our manipulation of the debt markets.

Bullard Says Large Scale Asset Purchases ‘Must Be Employed Carefully’

OK, it’s been a while, but this is the same China that was going to bail out the entire Eurozone:

China vulnerable to asset bubbles, warns IMF

Free Markets, The Easter Bunny, and Rainbow Colored Unicorns

Is it just me, or is there anyone else out there scratching their head with regard to the market over the past few years?  It seems to defy logic; does it not?  I realize there are many people whose ability to sleep at night dictates that they not look behind the curtain, but come on.  My emerging rant today began as I read Michele Bachman’s recommendation to the Occupy Wall Street nuts that they stop blaming  the free market for their troubles.  Really?  That’s fascinating advice.   I guess while we’re at it, I wouldn’t recommend blaming the Easter Bunny or a roving herd of unicorns for their troubles either.  What free markets?  You tell me which significant markets are moving free of manipulation today?

I’m tired of hearing about how markets climb a wall of worry.  Bullshit.  We had plenty to worry about after 9/11 and the market fell on its ass…as it should have.  It fell on its ass until the government stepped in and took covert financial action to provide stability.  While the context of this action may add legitimacy to this move, it opened the door to a much more active role for the President’s Working Group on Financial Markets.  On this topic, please review the following articles:

How to ‘fix’ a market – NYPOST.com

The Mystery of the President’s Working Group on Financial Markets …

What Is Goldman Alum Eric Mindich’s Role As Chair Of The Asset …

If the existence of a group commonly referred to as the Plunge Protection Team doesn’t make you question things a little, how about the current state of our treasury market?  It fits the classic definition of a Ponzi scheme in that current investors are only repaid as long as future investors are willing to commit additional funds.  Given that the Federal Reserve of the United States is now one of the largest buyers of United States Treasuries, I think it’s safe to say that we’ve hit the final stages of the scheme.  I compare this to an ebay auction in which you find out that one of the key bidders you’re bidding against is actually the seller.  Auction over, right?.  Pushing the extremes of comprehension, our markets seem to take this information in stride.

We no longer have free markets.  When I’m at a complete loss over real world events, I typically assume that I’m missing key information.  In this case, I believe what I’m missing are the covert actions of a government who completely understands the pivotal role played by our treasury market.  For those that would ask why countries like China, Japan and the UK would continue to buy if things were so bad, consider what would happen to the value of their current treasury holdings if the plates stop spinning.

I’ve looked behind the curtain…it’s not pretty.

TD