Through the Looking Glass…..

Posted on 07/15/2011


I see a handful of things including:

A compromise on the debt ceiling that satisfies very few from an idealogical standpoint, but keeps the ratings agencies at bay (don’t worry……any number of European countries will keep them busy). I want to believe the stakes are too high for even the blowhardiest (perhaps I’m inventing words) of Beltway bloviators (take your pick…..they are on both sides of the aisle) to jeopardize Social Security and other debt payments. Treasuries and vol (generally) in the financials would lead you to believe the market is discounting the likelihood of any type of default situation. The same CANNOT be said on the other side of the pond.

Politicians like to pander, particularly as we move into another election cycle, but they prefer to STAY IN OFFICE, so that they still have a soapbox from which to spout after next November.

Something will get done because it’s imperative.

Just imagine you’re watching “America’s House of Representatives Got Questionable Talent”.

Hang on, my phone is ringing……It’s CSPAN with a job offer for me.

Oh yeah, you had a VERY short window, and you would almost have to be drunk trading or have offers out there overnight to get filled, but the S&Ps broke 1300 briefly in Asian dealing and the Euro broke 138 1/2 in lockstep. As we enter the last hour of trading for the week, equities are hugging the flatline as they struggle with a Bernanke induced hangover from his Humphrey Hawkins testimony.

To QE3 or not to QE3, that is the question?

Really, I think the question on Bernanke’s mind is how best to disguise QE3 because he’s painted himself into a corner and last I checked Michelango isn’t a voting member of the Open Market Committee. To put this ‘recovery’ in context….. the domestic economy really started to retract in fall of 2007, so in a couple of months we will be 4 years removed from the beginning of the Great Recession. It took Michelango the same 4 years to finish his work on the Sistine Chapel.

I wonder what his work is worth, adjusted of course for transitory inflation? More or less than 2.3 Trillion?

It probably depends on your perspective because if you’ve been to Rome/the Vatican – it’s difficult not to be amazed.




To be or not to be, that is the question: Whether ’tis nobler in the mind  to suffer the peaks and troughs of our outrageous Ponzieconomy (TM – Zerohedge), or to kick the can down the road and possibly avoid a sea of trouble. And to oppose more QE? To die, to sleep.

Enjoy your weekend!


Posted in: Uncategorized