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To: Cogito Ergo Sum who wrote (76288)	4/13/2009 6:08:48 PM
From: Dale Baker	Read Replies (2) \| Respond to of 118717

There is so much deflationary drop in demand in general, plus weak employment so no wage increase demands for a year or two, I don't see any inflation on the horizon. And when it does appear, Bernanke will be draining funds out of his little cauldron as fast as he popped them in. He controls a massive balance sheet which he can manipulate almost at will. Imagine your credit card company giving you a $50,000 limit then chopping it to $15,000 as soon as you get close to a $10,000 balance. You suddenly realize how much less potential purchasing power you have. And your boss couldn't care less if you want a raise since 15 other people still want your job.

To: Cogito Ergo Sum who wrote (76288)	4/13/2009 6:24:38 PM
From: Keith Feral	Read Replies (2) \| Respond to of 118717

The collapse of the VIX and SKF suggest the bear market has turned. Banks look like better opportunities than cash, coming out of the bear market, recession, or washout over the past couple of quarters. This is the time to buy back in for the long term. I can't imagine the banks not being the bester performers for the next couple of years. CEF's are a nice yield replacement for cash PCN, PTY. All these bank preferred funds look pretty attractive too - PFF, PGF. If the banks keep on rallying, these high double digit yields are going to fall below 10% by the end of the year. Nice total returns as long as the banks keep working. If they are done going down, they have all the time in the world to recover. Common sense tells me the banks are the best place to be. Bank preferreds are great ways to pick up the yield along the way too.