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EggplantWizard (99.47)

Inflation Propoganda Film from 1933 and some thoughts on inflation

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May 21, 2009 – Comments (3) | RELATED TICKERS: FAZ , SPXS , UDN

 

 

 

And we all know how things went from 1933 on, right?

 

In case a reminder is needed....

 

I have a live position in FAZ at the moment, but consider the *trillions* of dollars (when a fractional reserve ratio is taken into account -- far more) that the fed is creating out of thin air, and how much easier it is to accomplish now than it was in 1933.

 

Consider this article U.S. May Strip SEC of Powers in Regulatory Overhau -- and who would they be giving these powers to -- the Fed!A private organization which rather than just failing to do its job, does it's job either poorly, or nefariously for the benefit of a few, depending on who you ask.

I'll tell you -- I think we're a long way from the real bottom in these market conditions, but I'd be a little bit surprised if the nominal bottom isn't already in, and I'll be looking to close my ultrashorts soon-ish, even at a slighty loss (We have further to fall in the short term... this rally got out of control).

 

[all of this is my personal opinion of course, and not intended as investment advice]

3 Comments – Post Your Own

#1) On May 21, 2009 at 2:49 PM, russiangambit (29.40) wrote:

If inflation becomes reality, interest rates should rise, therefore depressing P/Es of stock (due to lower return on capital) , so the stocks don't necessarily go up in the near term due to inflation. Now , commodities are a different thing. But it seems everyone knows it by now, judging by the recent run up.

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#2) On May 25, 2009 at 1:33 PM, OldEnglish (28.19) wrote:

That video is stomach turning. What's sad is that Keynesians believe  and teach it. High unemployment and inflation is something they simply can't compute no matter how many times they see actual cases.

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#3) On May 25, 2009 at 2:05 PM, DaretothREdux (44.73) wrote:

Stomach turning doesn't even cover it...I'm not sure how I didn't throw up after that...

Dare

Happy Days are here again!

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