Tuesday, May 12, 2009

Tim Price nails situation in makets.

The Price of Everything
It’s not just what you know, it’s who you know. And it’s not just who you know, it’s who you pay off.
Click on the this to read it all.

Also for those people fighting the market uptrend, which is most of the professionals, "it is the stimulus stupid". As I have said again and again the huge stimluls put in by the Bush administration has been cyclcling through the system for almost 8 months and it is leakking steadily into the stock market. The stimulus has a much bigger and faster effect on the stock market than on the economy. The money has to go somewhere and some of it is going into equity investment. Some of a stimulus that large is a lot of money. Later on, 4 to 8 months from now the Obama stimulus is going to have its effect and we get a surge from that too. It is all artificial and will eventually go bad, very bad, when they initiate their huge tax increases on a tiny minority group and simultaneously try to shrink the Fed balance sheet. Better get your skates on for that one.

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