The "Perma-Bear" Posts
Does anybody want the world to end? What a dumb assertion.
This post will not be up to my usual standards. I'm pressed for time, but I have to address a running theme on CAPS.
The market is up. That is great. We also printed trillions and gave it to bankers, investment houses, and foreign creditors.
NO ONE, and I mean NO ONE, here at CAPS or anywhere can tell me where that money went. NO ONE. The antipermabear crowd is patting themselves on the back for calling a bull run. Really? I know many permabears, as they are called, like me and others that said the market will rise as well. Go back through my posts and comments. What did I say?
We gave bankers trillions. What do these guys know how to do? What is the one thing they're good at? Making steel? Refining engines? No. They invest.
So until anyone can show me where all that new money went, I'm going to tell you that it mostly went into the market. Why are the equities of financials leading the way? Why did the April 2009 FDIC report show banks acquired $82 billion in equities in Q1 2009?
I don't want the world to end, and I expected the market to go up. I'm not positive I'm right, but I'm positive that I'm closer to the truth than the bulls. This is an inflation fueled rally and it's running short on steam.
Deflationists keep pointing to a 1% drop in CPI and they can't figure out why the market doesn't drop. The inflation is already here! It's in the stock market.
David in Qatar