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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (10865)	12/9/2008 10:45:29 PM
From: John Pitera	1 Recommendation Respond to of 33421

Hey Hawkmoon.... and yes I realize you are not the Hawk. Why not.... Our government is putting money into the equity bracket of corporations, institutions and retirement funds.... I believe that is a fine idea. The key concept in these economic and equity downturns is that the low man on the totem pole..... the common equity holder is the most diluted and can see all of his equity investment disappear.. Not a problem for that to happen now. This is a time where every investor should be given the schedule of obligation seniority and repayment in the event of a default of other significamt liquidity gap. So Many have argued that this this is the type of discipline that needs to come back into the capital markets... where every last penny is not guaranteed. creating a HUGE bubble in US bonds that's going to require tremendous inflationary stimulus or some major efforts by the PPT, but this time in a public manner. that's why the forward crude strip has crude all the way out to over $76 and has a 34-36% differential between the near term and 12-14 month contracts. Let me state that the USD is going to come under some significant selling pressure this coming year...and some of the price appreciation in all USD denominated instruments will find that some "slack is being generated" .... JJP