Notes
A favorite stop of mine is Evil Speculator. Great charts, biting humor, and even sarcasm make for a great mix. Yesterday the main author of the site voiced his concern that the effort involved is overwhelming, and that given this crazy market he is fed up with all the backbiting he gets from the comments section. I would hope he sticks with it, but I can understand the frustration.
While the comments section here is always top notch and interactive, I have seen a drop off in traffic over the past month of about 50%. I write for fun and for my own thinking development, so whether tons of folks read every day or just a few does not make a huge difference to me (though more is better). I would wonder if people have just gotten burned out on this stuff or just walked away from thinking about it in disgust. Chime in in the comments.
Wednesday in Pictures
I am still trying to pull together a cohesive line of thought about many items. Obviously this may take more than a few hours work. Until then, I will present the pictures I think are worth thinking about right now. All should enlarge if clicked. All commentary after the chart is MY OWN and not from the chart author's article.
Consumer Credit Contracts for 7th Straight Month (It has never done this for 8 Months in a row!)
Highly Reflationary!
Rally in the S&P 500 Not so Great in Euros
Notable: In Euros the move in Gold is also much more subdued.
Gold, in Inflation Adjusted Dollars, is Nowhere Near All Time Highs
Bubbles are violent and quick events, not 8 year sustained moves up. If gold is going to be in a bubble, we have not seen the beginning of the blow off top yet.
Treasuries Laugh In The Face Of Dollar Scaremongers
Treasuries say no inflation, hence a stronger dollar (at some point?). This would of course crash the stock market. When might be the most opportune time for the FED to do just that?
A year in the life of BAC stock:
It has been a long strange trip.
I will end the night with an absolute must see chart which breaks down by asset quality where it may be better to put your money; Toilet Paper or the Banking System?:
Brought to you by my good friend Stagflationary Mark of The Illusion of Prosperity. Please note the column "Liquidity Risk?" for a key difference. I may not stop laughing until tomorrow.
Have a good night.
