There is no need for me to discuss the yen and how it will destroy the Japanese export market. There is no reason to discuss the potential downside to QE II or even the reasons to initiate such a program. There are no reasons to be cautious, since the dollar goes down. Therefore, stocks must go up. There are no reasons to discuss the downside ramifications of European and America austerity, providing the GOP takes control in a month. We do not need to worry about tedious currency or trade wars or malignant unemployment. All we need to worry about it right now.
Living in the right now economy, everything is based upon expectations. It’s a contradictory thesis, but true. Everything is fast. The market is quickly and expediently pricing in a full recovery and rapid inflation, all at the same time. Why else would gold be north of $1,300? Can both co-exist?
Over the years, I’ve come to realize the market is a terrible pricing mechanism. It’s a rarity to see the markets behave in a manner that coincides with actual economic data. More often than not, the market is simply guessing, like most of you. Case in point: dot com bubble, credit crisis and subsequent recoveries.
Like it or not, right now the economy is pricing in an extension of the Bush tax cuts, a GOP landslide, a major uptick in employment. While it’s true, the banking system is completely impaired. It’s also true we are pricing that in too.
As the final hour of trade commences, “The Fly” is being “Stunt man Mike’d” due to a belief system gone wrong. Sometimes it’s better to know nothing and live free; than to over-think the little digits and letters and live in hell. The new America is enjoying a period of “decadent poverty,” where free lunches are served with fine silver and everyone wins.
Off to drink a glass of water, filled with live waterbugs.[youtube:http://www.youtube.com/watch?v=Zn3BcUCm3IA&feature=related 616 500] If you enjoy the content at iBankCoin, please follow us on Twitter