Tuesday, July 3, 2007

Short Trading Week

For those of you who are looking for a nice summary of the nuts and bolts of the financial chemistry involved in the sub prime mortgage debacle this article by Paul Tustain explains it in easy to understand lingo. It is a must read and an eye opener for those late to party playing catch up.

I have made some references to peak oil here and again I want to highly recommend the oil drum site. You can click to it via my favourite links on the right side. It contains a wealth of information and facts regarding this subject and is must reading if you wish to stay ahead of the curve.
For those of you still out there, who still rely on government inflation statistics here is a cold bucket of water for you. I came across a very interesting graph(courtesy Shadow Government Statistics) depicting pre and post government manipulation of CPI which happened somewhere around 1990 if memory still serves. All sorts of government payments to the public are inflation indexed so we definitely have motive here. Remember the government says there is no inflation,so they must be right...right??!! Only right wing conspiracy theorizing wackos would believe otherwise. Just keep telling yourself there is no inflation to worry about, you'll have lots of company at the other end of the tunnel. Just like the tech bubble, "man, I wish we woulda' saw that comin'. The above chart (center bottom) says it all.

The Saudi stock market - TASI I was thinking that this chart could be confused with one of their proven and (un)probable oil reserves, just a thought.
Looks like the bond rally from oversold levels has run its course. The TLT's gapped down on decent volume for what is for the most holiday trading. 5.50 then 6.80% I wish I was wrong but facts are facts. Best to lock in that adjustable rate mortgage ASAP. I will repeat myself again, that just as interest rates fell further than anyone imagined possible (back in 1980) rate have begun a rise that will carry further than anyone thinks possible. My guess is back to the old highs of the early 80's and then who knows.
For those of you who still listen to Wall St. here is some sobering reading for you. Like I said before, this couldn't be happening to a nicer bunch of people. Unfortunately your pension plan is probably loaded to the gills with this toxic paper, seduced by what Bill Gross calls 'make up and 6 inch hooker heels"

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