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Originally Posted by niltes  it seems like our underlying policy is to devalue our currency. with the fed dropping interest ratess, printing money at an amazing rate,
our trade deficit at ridiculously high numbers, and our national debt setting records; it is just a matter of time before we see double digit
inflation and interest rates. our next president no matter who he/she is will inherit an economy that can only make them look bad.
hope you stuck with your yen position pokerjoe. i bought some more this morning at 95.35. |
I had to sell half to cover my losses from shorting the market, which has obviously been so rude as to fail to drop as planned. The thing about swinging for the fences is....
I gamble for a living; betting on economics I do for fun.
I think the Fed rate cuts and the weakening $ have protected the market (exports up, cost of money down, and lower (stock) prices in foreign eyes). I still think it'll tank, but I give up on guessing when (though if I had to, I'd say it's holding on, in some strange way, until after the election).
Wouldn't want to be the next prez. With the Fed rate already down to 2%, it'll be like being surrounded by vampires and given a gun with only 2 silver bullets left. Good luck with that. Not to mention the end of the lag between inflationary actions (stimulus, $ drop, decreasing revenues, etc) and the inflation itself (or I should say, the lag between continued disbelief/normal spending, and reality demanded spending cuts).
Wonder how painful it will get here (in CA, where niltes and I live) when the state budget really hits the fan and layoffs occur in what is supposed to be the safe eployment sector. From rolling bubbles to rolling hurts.
Why do I oddly enjoy it? I guess it's the drama. For an econ dude, these are fascinating times.