Nevermind, it’s all okay!

March 18, 2008 at 3:34 pm (Inflation)

worthless rubles Well, disaster averted.  See this worthless pile of rubles to the left?  That’s not gonna be us.  I was getting worried for a minute, since all fiat currencies end up dead in the end.  But, all is well with the markets and our economy.  Everything’s gonna be all right now — housing prices will return to their peaks, stocks will recover, commodities will drop to reasonable prices, and the dollar will soar once again.   401Ks will stop bleeding assets, the banks will act responsibly, and employment will improve.  The fundamentals are all in place.

Not.

Seriously, I don’t pretend to know the back room deals going on constantly, or how the shell game of the $500 trillion (yes, trillion) worth of derivatives actually works, or what kind of coordination the world’s central banks have.  But I do know there is no reason for the elation the stock market has shown the last couple of days, and especially with financial stocks today.  And there is no good reason commodities have dropped so much, unless it was due to a bunch of people having to sell their losing positions to fund margin calls.

While Wall Street seems to be slapping each other on the back and saying, “Whew, that was a close one,” everyone with common sense should be freaked out the Federal Reserve had their first emergency weekend session since 1979 because they couldn’t even wait two days to intervene with their scheduled and expected cut, fearing a market crash on Monday.

I even saw an article today whose title was something like “Fed only cuts rates by 0.75% — bad news for gold.”  Um…. what?  I don’t get it.  I just simply don’t understand.  It seems I can no longer find this article, so maybe the author wised up and modified the title.

Oh well, the next few days will force a showing of cards.  The camel can withstand just a few more straws.  After Bear Stearns dropped in worth from $80 to $5 per share this month, Lehman Brothers was rumored to be next on the chopping block due to the way in which it is similarly leveraged.  But hey, some good cashflow results and all is normal!  The stock climbed over 40% today.  Well, that’s understandable, since we all know reporting is completely accurate, and when a CEO says liquidity is not a problem, that person must be telling the truth.

Today’s article of doom: For everyone who cringes at the phrase New World Order.

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