When Intermittent Reward Becomes None

Click charts to ENLARGE.

Part of the attraction of GAMBLING, particularly in places like Las Vegas is the reality of intermittent reward, accompanied by the bells and whistles inherent to winning. At this point, investors have become deprived of the 'winning experience'. Mean reversion has simply become 'mean'.

The 'bull markets' have been few and far between:

• Bonds
• US Dollar
• Japanese Yen
• Volatility

The yield on the two year bond has fallen below one percent and oil closing below fifty dollars a share. Let's face it...the price of gas makes no difference if you have no job to which to drive.
One week falls? Amazing.
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A few major indexes down MORE than 60 percent per year.
________________________GM and Citigroup appear priced for bankruptcy and 14 of 30 Dow stocks are priced BELOW the TD Absolute 50 percent range (using a 500 day look back)
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The evolution of the nineteenth century agricultural revolution, to the twentieth century industrial revolution, to the twenty-first FINANCIAL revolution has simply exposed the financial industry as the emperor wearing no clothes. And worse still, our financial leaders, Bernanke and Paulson have revealed themselves as empty shells.Here's the FXY (Rydex Japanese Yen Trust)

Historical terms:

• Contained
• "late innings of the credit crisis"
• "Nation of Whiners"
• New Economy
• "iPod Economy"
  
• Goldilocks
• Apotheosis of central bankers (chumps exposed as chumps)
• "Debt doesn't matter."
• Pundits as prophets
  

Irony? When Somali pirates become the most successful growth business on the planet. At least they don't need TARP.

Good trading and great risk management to all.

Educational use only. Never intended as investment advice.