The new FED Governors Vice Chariman is out making comments. Yellen says:
Mortgage buying effort worked as planned
No inflation
Mortgage rates will stay low
Now is not the time to tighten rate policy
They see exactly what the stock market is doing. But inflation is not around the corner. It is deflation. Have you seen the prices of assets other than copper and oil? Do you think your house will go up in value anytime soon?
Stocks are in the midst of the end-of-the-quarter blow-off. The odd lotters are back and buying anything that moves. Is now the time to buy? Nope. Now is the time to sell…
That doesn’t mean we will stop and reverse down. It simply means that things are getting silly. It’s great fun, but when the upward pressure stops, most stocks will fall while the major averages simply stabilize. Be ready for new setups…Maybe even some shorts…
If you enjoy the content at iBankCoin, please follow us on Twitter
Scott, in a deflationary environment wont the banks get crushed. I agree with you 110% on deflation.
Yes. But the FED, Treasury and the Governement won’t let it happen. Not yet anyway…
most banks are truely insolvent anyway, the mark to model accounting is propping the books up and we all know that bullshit will not be able to survive in deflationary environment.
Your blog is a great addition.
Me likey!