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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives
SPY 662.63+0.4%Nov 19 4:00 PM EST

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To: GROUND ZERO™ who wrote (26736)11/21/2011 4:07:50 PM
From: Hawkmoon  Read Replies (2) of 219052
 
I got a kick out of how CNBS pundits were blaming the failure of the "super committee" to come to an agreement..

But they really should be HAPPY that they didn't. Because no agreement holds out the hope for more short to intermediate term "stimulus" instead of austerity.

Austerity, for the USD, should result in commodity deflation and strength in the USD. The only reason it's not supporting the Euro is because of fear that that currency will disappear very soon as the confederacy breaks apart.

After all, spending less is the opposite of what we did with QE1 & 2. So now we have no QE pumping money into the system, and the dollar is strengthening.. Having an agreement from the "super committee" means there will be even LESS easy money going into the economy.

That's good for bondholders and those holding cash, IMO.

Hawk
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