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This article made me think, what is white looks black, what is black looks white. The rising mortgage rates, while they may eventually dampen the housing boom, will also give a further boost to inflationary pressures Realy? How? Maybe on the very long term but..

Water Mrs. Central planner. Give the kid some water, can’t u see he’s thirsty?

Scary day, didn’t expect liquidity to dry up this fast. Added QQQQ @ 39.57 and 39.37. Tempted to add more at 39.26 but didn’t. At least tech showed relative strength, I find that encouraging, but it could be just wishful thinking..

This manufacturing graph really looks puzzling. I can understand why the fed wanted utilization to increase before they started hiking rates 2004, to be sure the recovery was for real, but not why they didn’t react to falling utilization earlier than they did in 2001.

Isn’t it reasonable to expect housing rents and short term rates to be correlated? When increases in housing rents drives the core CPI number higher, it looks like the fed fight itself fighting inflation. A design to overshoot..

If it's ever been a period where the fed could wish the CPI numbers was different from what they really are, I think it would be now. I think the fed wants to take short term rates as high as it possible can so that it has ammunition to fight the coming low-inflations/deflation environment due...

Why choose when u can buy both. Seems like a good hedged bet.. I've bought TLT and long term corporate bonds as well. If I were bolder I would put 50% in TLT and 50% in QQQQ margin X2.

I think the inflation premium is too big. The indebted consumers will soon want to or have to save. Especially because of the negative effect a slow down in house prices will have on wealth. Price setters can’t increase prices in this environment. This will probably force the Fed to lower...

Weak dollar should boost profits. Profits will be used to buy back stocks. Rebalancing investors will take profits from gold, oil and REIT and buy tech stocks. Momentum could be created.. Picked up QQQQ @ 39.89 and 39.81 today. Expect them to only be outperformed by Long-term bonds the coming year.

Haha yeah that is Mr. Market, but did you know, he used to wear boxer shorts made of dollars before. Obviously they’re too small for him to wear now.. I think Mrs. Central Planner is shrinking them on purpose when she washes his clothes. She probably figures if he wears them his balls will be...

Imagine a kid named Economy. Economy lives with his family, Mr. Market is his father, Mrs. Central Planner is his mother and Miss psychology is his bigger sister. Mr. Marked used to be a rational and responsible father, Mrs. Central planner a caring mother. Miss psychology? well she loves...

Yeah and notice how strong the negative correlation between S&P and bonds have grown since the start of 2006, at least on weekly charts..

Dollars and bonds are falling in lockstep. How long can this continue? Bonds are getting more and more attractive with double speed from a rational point of view. Things looks coordinated though. How much power do the central planners have? Enough to throw the bond and dollar markets into...

The deflationary influence has been strong enough to keep inflation low even in a period where commodity markets have been rising sharply. So I guess the question is, will commodity prices continue to rise as sharply as they have, if not, then I think that points to lower inflation. In the...

Bonds are what are keeping me from sleeping at night. Why does everyone believe bonds will fall? Because the dollar will fall? I think everyone underestimate the dollar depreciation that already have been taking place. The marked have already priced in record US debt and trade deficit...