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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?

To: aerosappy who wrote (6552)	10/4/2007 5:45:24 AM
From: jim_p	Read Replies (4) \| Respond to of 50114

The market always does the opposite of what you think it should do. If everyone already thinks it, they have already taken their positions so it doesn't happen. In September everyone was certain it would go down and it went up. Now we are in October and everyone is certain it will go up, so maybe the bears get lucky. I doubled my shorts this week and am thinking about using leverage to double again if we get more strength in the market. Nothing has changed as far as a recession starting, or having any solution to the credit crunch. Inflation is starting to run away in the faster developing countries and now they are forced to leave interest rates unchanged when they should be increasing them because of the credit problems and the weak USD. This will only make inflation worse in the long run and cause rates to be even higher then they are today. Cutting interest rates by 50 basis points was a two edged sword. AG hit the nail on the head with his comments about the central banks having it easy for the last decade due to deflationary pressures from globalization, but he recognizes as I do that it was a one time event due to cheep labor and it has run its course and we are about to see the opposite effect as labor costs rise the fastest in the countries that gave us the cheep labor. The million dollar question as always is timing. Jim