Don't Do It

Many women have become addicted to online gaming, online trading, and who knows what else. Strictly as a public service, I encourage these women (and men) NOT TO LISTEN to these gentlemen. To protect their identity, I'll provide the quotes only...and I'll toss in a few quotes from some folks who actually 'get it'.

"The slowing of the housing market may restrain other forms of household spending as well. With homeowners no longer experiencing increases in the equity value of their homes at the rapid pace seen in the past few years, and with the recent declines in stock prices, increases in household net worth are likely to provide less of a boost to consumer expenditures than they have in the recent past. That said, favorable fundamentals, including relatively low unemployment and rising disposable incomes, should provide support for consumer spending."

For a very contrary opinion about housing fundamentals, go here. Has the unwinding of the bubble barely started?

"The few who understand the system, will either be so interested from it's profits or so dependant on it's favors, that there will be no opposition from that class." - Rothschild Brothers (1863)

"Financial market prices imply that inflation will continue its gradual but persistent downward track during the forecast period...there remain, I believe, clear upside risks to that inflation outlook."

"The Federal Reserve bank buys government bonds without one penny..." - Congressman Wright Patman, (1941).

"We don't have any perfect measures of inflation expectations, but what we do have suggests that market participants do not foresee a rapid fall in core inflation. This is why I have argued for further policy actions to convincingly restore price stability."

"Give me control of a nation's money and I care not who makes it's laws" -Mayer Amschel

"No single factor constitutes a dominant explanation of the deterioration in the U.S. current account balance. That said, our model accords the greatest roles to increased productivity growth, which has made the United States a magnet for foreign saving, and to the slump in foreign domestic demand, which has led to an excess of saving in those economies."

Maybe Nouriel Roubini's analysis (which has been pretty good) deserves a look.

"The [Federal Reserve Act] as it stands seems to me to open the way to a vast inflation of the currency... I do not like to think that any law can be passed that will make it possible to submerge the gold standard in a flood of irredeemable paper currency." -- Henry Cabot Lodge Sr., 1913

"Any informed borrower is simply less vulnerable to fraud and abuse."

"When you or I write a check there must be sufficient funds in out account to cover the check, but when the Federal Reserve writes a check there is no bank deposit on which that check is drawn. When the Federal Reserve writes a check, it is creating money." -- Putting it simply, Boston Federal Reserve Bank

"To succeed, you will soon learn, as I did, the importance of a solid foundation in the basics of education--literacy, both verbal and numerical, and communication skills." (Guess who?)...

Oil. Here's where we are. Broken trendline, support around 57.5, resistance below 70, with some retracement obvious. Steve Forbes' prediction earlier in the year for oil at 35 dollars a barrel? Not in US dollars.

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"But the market keeps going up." Not if priced in gold...

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Some stocks are starting to show 'warning signs' of problems. Okay, you can't short them, because loose monetary policy has swamped the market with money, such that buyout talk for 100 billion dollar corporations becomes 'routine'.

Here's Baxter, with the 50 day average rolling over, price below the 50, and at least a putative head-and-shoulders toppy look to it.

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ERJ, the Brazilian aircraft company. Is that gap calling like a mother?

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BBBY - Bed, Bath, and Begone?

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BEN...about the Benjamins?

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Special K? (Kellogg)...

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Who's going to buy out the RKH?

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This isn't the most updated chart (you'll have to click through to get that) but the Wright Model that some say the Fed follows shows an ever increasing probability of recession. Which is why it's totally BS that the Fedheads talk tough on inflation, and why they keep pumping credit into the system...creating more pressure in the geothermal nether regions. Remember..."it's what they do...it's who they are." Caveat emptor.

Good trading and great risk management.

Educational use only. Never intended as advice.