Wow, I cannot believe my eyes. I am not just talking about the whoosh lower in futures. I am looking at T-bills trading at a negative yield and TLT north of $122. Euro Libor is at the 2009 highs and European markets are crashing. Moreover, the safe havens have been bombed, namely GLD. In this environment, everything trades lower.
If we are using the 2008 model, this is just the beginning. This crisis will be absorbed without TARP or bailouts. The political will is gone and we’re on our own.
Inflation was never real. I know Peter Schiff and others made millions off scaring people into believing that lie. But the truth is, the Fed can’t print money fast enough to offset the destruction of capital. Don’t take my word for it, go take a look at copper, oil and coal.
Regrettably, I missed this move to the downside. Hindsight is 20/20 and there is no point lamenting over losses. They just happen. As tempting as it is to deploy my 30% cash into this market, I will likely do the opposite. Despite being technically oversold, there are many other factors that take precedent.
This is it. This is the collapse that everyone said would happen. At this very moment in time, while our leaders twiddle their thumbs, the global banking system is collapsing. The only thing that has me scratching my brain this morning is Italian 10yr bonds, actually easing a bit here to 5.75%.
Aside from that, the European banks are way over-leveraged and our economy is in the grips of a deflationary vortex.
Good morning to you too!
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