March 10, 2009

Articles of interest

Libor Creep Says Credit Markets Risk Freeze on Policy Distrust

In this article we see that there is no tricking markets. Politicians can say whatever they would like, but if the rubber doesn't meet the road and things don't start to pan out the market reacts accordingly. Politicians need to get a reality check and realize that by trying to save everyone they are in fact endangering everyone. "Bad actors" unfortunately need to be punished for bad choices and bad investments, the more that is held at bay the more "good" people and investments are harmed.

Pimco Predicts Inflation, Joining Buffett, Marc Faber (Update2)

This is one of those large things that is really currently being distorted. Currently the US is basically printing as much money as it can to prop up industries and banks, they are spending money like it is going out of style; under normal circumstances I would be shorting the dollar like crazy. The more dollars on the market the less valuable the dollar. However, under current circumstances we have one of the most stable governments on the planet and uncertainty in the world leads to investment in the US and US held assets. But like everything else, this won't last forever, and at a point certain in the future our currency is going to have to take a major hit and inflation will catch up to us. The question is when. Want to be on a dollar short when it happens.

No comments:

Post a Comment