Hi DJ, <<I just dont get the mechanics of "Fed rate down, dollar up". If anything it's woodoo economics (sg). Must be all in (somebody else's) minds...>>
Last night's action was good:
(a) the economy was much weaker than calculated
(b) will get weaker yet again
(c) requiring lower than record low discount rate to try to keep from sinking
(d) is heavily debt-ed
(e) with no driver of growth and profit in view or imagination
(f) soon to be burdened by a war few around the world and in the US feel up to
(g) that by all logic must commence in any case
(h) else more nightmares in the future
(i) even as many tried to make out that a sinking dollar is good for the economy
(j) conveniently ignored now that the dollar is bouncing
and so, it must be time to bid stocks up by a few percentage points.
DJ, why are you so dense that you cannot understand the beauty of the symmetry in reasoning, and the elegance in power of positive thinking:0)
I was just on the bus with a neighbor who is Managing Director (yup, they ride the bus too, these days) of a private equity firm that was recently sold to FleetStreet in Boston, and when asked how things were, he just shook his head and said we should get together for a beer.
I was on the phone with another friend who was with Carlyle Asia and then went to Robertson Stevens in San Francisco, and he commented that there must be serious "do not wanters" (a term used in real estate for when an owner wants to get rid of a negative cash flow property on any terms) because he was shocked that FleetStreet would rather shut Robertson down than letting the management buy it from them. Turning down buyers!
In view of the animal spirit still remaining in the equity market, maybe Fleet Street should have IPO-ed Robertson:0)
I would guess that the time now is for closure of an old cycle, in time for new world, new realities, and new rules:
(a) underwear will soon be examined before flight boarding
(b) artificial limbed people will not be allowed on flights
(c) people will not want to fly in any case
(d) war, continuation of the 1060s episode of original not-rights and not-wrongs, will be constant and everywhere, until exhaustion, just like last time
(e) mob demands will be met all around the planet
(f) in exchange for popular support
(h) people will become poorer year by year
(i) no leader will have the education, experience, vision, charisma, and fortitude to do any good
(j) until the next abracadabra ends this awful interim, in leadership, economic driver, and world order
In any case, bidding on stocks may not be the right move to make just now, because things are not getting better, still worsening, with no particular mechanism to stop the evolution, except ever lower clearing and then stagnant prices.
Chugs, Jay |
