Listen to me now you malefactors clad in cheap regalia.
The Fed is ending QE in October and the ‘real’ market is suggesting chicanery is at hand. I know some of you like to believe there is an imaginary inflation boogie monster out there, forcing the Fed to raise rates. This isn’t true.
Look at my Raw Commodity Index, ytd.
Now tell me, how do you explain that?
Apparently, all of the money is fleeing the real economy and flooding into chinese burrito stocks? Is that your game plan?
Fair enough. Deflation is part of every economic cycle and eventually these draw downs will benefit corporate balances sheets through input expenses. But it doesn’t happen by happenstance.
Deflation is bearish for stocks. The Fed isn’t acknowledging this and has decided to end QE, regardless. European and American government bond yields are at record lows. Why is that?
These are just a few questions you should ask yourselves before buying YY on margin.
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Fly – at some point those commodities become a buy, especially in light of a potential parabolic top in the dollar.
What is your take on the shippers? Rates are up now about 70% since July.
UUP?
utes gettin creamed, whats the plan
Creamed? They are down 1%. Define creamed?
Not sure if you covered this in an previous post but another big drag on corporate profits for multinationals is the strengthening USD. Businesses are likely getting bludgeoned by foreign exchange rates.
ah so you wanna get real now on finances/economy, sir?
We are not in a deflationary environment. We are in a low inflation environment.
My Apple expenses are expected to increase substantially over the next 6 months… INFLATION
Commodities are falling because the dollar is rising and we had record crops this year.
Corn is coming out of our ears!
Are you willing to bet the farm?
When retards starting dumping ice water on themselves it was all over.
Remember the “the market looks ahead 6 months” thing?
With an actual Rise in rates coming, (forget the end-of-qe factor), another weather related Gdp challenge, housing gains at least being capped. In that time frame?
Just more evidence it’s not being allowed to move where it Would
the feds have been making so much noise about interest rate rises for so long I think they are saying – we *wish* we could raise rates soon but we will wait until improved conditions “next year”. secondary average joe market is deflated – craigslist, Ebay, and people packing their houses w/ roomates, if not in their parents basements. Whatever, we types are floating on top of this tide and pay the higher prices. something here concerns me 🙂
Why is that.
Lets give it a go.
We get deflation only because we have
more shit than were willing to pay for.
The fed is ending QE in the face of this
becaause we have had 200% gains in the last little while and is not worried
about some medium pullback as most
of us did ok.They need to test what
the market can handle on it own
in the next 6-12 months to decide
future policy.
There you go
I like this, take the training wheels off, see if it can start riding. what is the reaction by the corporate cash hoarders? am suspicious we are entering a new economic era too, globalization (when I say globalization I hear greenspan’s voice, geezus) may be creating a new dynamic we don’t have a good handle on yet. noise is wages are rising in china but I don’t know if its true. would it bring back some inflation? The broke kids seem well educated, if someone rang the right bell maybe we would kick a new global growth era. maybe I should get high.
While I agree with you Senor Fly about a lack of growth in the money supply due to the top 1% holding about 50% of the worlds wealth: http://www.businessweek.com/articles/2014-04-03/top-tenth-of-1-percenters-reaps-all-the-riches
and wages completely stagnate since the 70s, it ain’t exactly a recipe for runaway currency expansion.
However, consider this: A loss of faith in the US dollar powerful enough to drive interest rates high enough rendering the US unable to cover debt obligations. Crazy? Not really when you look at the numbers. More a matter of if then when. Maybe we can push it out a few more years, but any serious number cruncher can see it coming.
Dollar loses 30% of its value overnight and suddenly we are Zimbabwe. Long stocks, real estate, gold, and everything you can touch and feel and can be converted to Swiss Francs or Norwegian Krone.
Get a second passport and start planning. Something is coming that will make 2009 look like a walk in the park.
Why inflation will not occur: http://www.businessweek.com/articles/2014-04-03/top-tenth-of-1-percenters-reaps-all-the-riches
Nuff said.
Why the US Dollar will collapse with or without inflation:
http://www.usdebtclock.org/
Nuff said. Buy real estate, gold, stocks, a cross bow, a second passport, and get ready for the storm.
I hate that “nuff said” stuff. It’s the sign of a closed mind. imo
This is funny: https://www.youtube.com/watch?v=TlN28DoL5qA
very good
I don’t like the tone this person is giving out: gorby.
I might have to ban him.
Agreud, 1% intraday isn’t bad….I guess….but they are lower than where you got in, do you plan to stay in even if they keep falling?
Now take that raw commodity index and remove everything that is not food related please. Then you will see why they need to raise rates. The average Joe won’t be able to afford to buy food soon. And that directly impacts the federal government through the food stamp program.
I also find it interesting that oil has been dropping a lot, yet gasoline prices are still high. That reality can’t help the average Joe either.
The poop is hitting the fan, and the fed is going to try and get ahead of it. Too bad the effect of higher rates will be lower stock prices, and companies laying off workers.
Take a look at McDonald’s stock. Dropping like a rock because their margins are getting obliterated by meat costs.
Take a look at Live Cattle futures. They have doubled since 2009. McDonald’s can’t raise prices fast enough to keep up with that.
Mcdonalds uses meat?
yeah, average joes are in a bind. and we need to pay economic bills. they seem to be adapting and they have lots of fat reserves. we’ll keep them calm with cable and fast food while the new elite upper middle class emerges.
Aapl is a disaster….i may very well put on a long term short. The days of Jobs are over. They will not collapse over night, but i see a three year massive down trend in the stock coming.
The fed would not pull QE if the economy was not ready to rip! They are all distinguished economics professors.
http://venturebeat.com/2014/09/09/apple-watch-is-ugly-and-boring-and-steve-jobs-would-have-agreed/