December 2010
28 posts
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China = Stagflation; The Stage is setting up for a... →
China can either move to raise rates (potentially popping a housing bubble), or they can let the Yuan appreciate (and squeezing exporter’s razor-thin margins causing bankruptcy and job loss). The checkmate situation seems at hand. 2011 may be characterized by a hard landing in China…this will be one of my themes for 2011.
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Don't look now, but the foundation for the... →
I’ve been missing in action for the past few weeks due to other commitments…I’ll be back though!
2011 is looking rather ominous in my view. A LOT of unanswered questions. Make sure to check out my main website, RCS Investments, for a review of 2010 and my updated outlook for 2011.
I’ll be posting up this material in the weeks ahead. Thanks for your support!
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Perfect Example of a "Moral Hazard Bubble" →
(Click on the article above)
Congratulations officials…you’ve succeeded in setting up the most dangerous investment climate ever….BRAVO!!!
This confirms my worse fears that this whole recovery in the markets is based on hope and moral hazard (ie the government will always come to the rescue). Sure the economy has been recovering, but the recovery has been extremely lackluster...
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Wow! →
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Funny stuff!
More importantly though, lots of people watch John Stewart. What was only news in the financial world is now being quickly disseminated into the mainstream. The headwinds towards carrying out this policy will only get stronger. That’s why I think the Fed’s hands will eventually be tied in 2011. Who knows, we might have seen the last of QE already for a long while!
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Even though I believe that Treasuries are a good buy at this point, it’s always good to hear the other side of the trade….and boy the story sure is getting stronger by the week it seems.
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The Jobs Market continues to improve, but very... →
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Here's Something "Unexpected" -- Leaders continue... →
Oil is at $90 and unemployment is close to 10%. When will policy makers realize that continued money printing is long-term bad for the country? Please see the motto next to the title of my blog. This rings true now more than ever.
Despite what Mr. Bernanke says, I believe it will be much harder to pass these types of policies next year when the voting members are more dominated by...
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Germany is once again standing its ground. →
As long as there’s doubt on whether they will backstop a larger rescue package, look for the Euro to weaken further.
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Tensions still remain high in the Korean... →
Not just between North and South Korea either.
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Some Good News on the Consumer Front. →
Consumer spending continues to show growth. Consumer stocks have been rising strongly in the latest rally. However, secular headwinds remain, starting with a large structural unemployment problem, which was reflected in November’s job report.
To be fair though, reports are positive that this holiday’s season has been better than the prior and thus sentiment has improved as it seems...
Rumblings from the China Real Estate Sector →
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More Reason for Caution →
The Fed is signaling that QE isn’t going to be the panacea that everyone expects. They are urging more fiscal stimulus as the state of the economy can only be described as —growing, but at a pace that is far to weak to bring down unemployment and vulnerable to an exogenous shock.
While economic indicators show improvement, this article confirms my bearishness on the strength and...
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I’ve missed more than 9000 shots in my career. I’ve lost almost 300 games. 26...
– Michael Jordan (via sportsnetny)
For the fighters in life. Never give up. Keep punching. Keep wailing.
Times will get tough; you will feel defeated and worn out; It’s how you respond to these challenges that makes you successful and triumphant.
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This really doesn't make gov'ts look good. →
And….finally…. see this.
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The Bush-Tax Cuts: A pulse on what American's... →
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Does the North/South Korea Crisis have further to... →
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Today's Economic Indicators and Observations
+Improving economic results show that the recovery is on firmer footing.
ADP Employment report for November shows a gain of 93K, 23K above expectations, while October was revised higher to 82K from 43K. The breadth of the gain was improved from the prior months.
Strong UK PMI and German Retail Sales
Strong China PMI = the economy continues to cruise.
Mortgage Application for purchase inch up...