Glad to hear you so buoyant Champ. Would you say that you are spending more now than ever before. regards f9
Well Fearless what is your spending rate - is it going up or down? As it happens I am spending more than ever before. But the fact for me is I never let any personal spending interfere in my trading capital, my accumulating profits from trading and my trading expansion progress.
So I should put my money into raw materials/commodities that the global manufacturing economy is using as we - as you say - have a big recession (or at least a major global economic slowdown/stagnation) ahead of us? Where's the logic in that? Oh wait, this is ET. I shouldn't ask for logic here.
TED spread reaction of today pretty muted. Complacency? Or just a collective yawn from the bond markets?
Wait a minute, i did not say you'd make money in commodities. Commodities are used by investors (and you're a trader) to keep from losing money!!! And yes, when there is big-time inflation going on, and you are an investor, you should have your money in commodities or other hard assets, but probably not US real estate this time round. Ideally you would have been moving into commodities, particularly foreign produced, before the Fed started to panic. It was obvious to all that the heavy deficit spending would lead to rampant inflation as the debt was monetized. I mean that's how it is done nowadays, and i'm sure i'm not telling you anything you don't already know, makloda.
So what is it then. Commodity inflation or global recession? Hard to rationalize both simultaneously over an intermediate time-frame.
Commodities are going up because we're in a global economic boom. China, Russia, Brazil and India need commodities. This is bullish.
Do not ask such hard questions, Makloda. This is the ET forum, not Mr. Wizard. We really don't know yet which force here will dominate. And you're obviously right about hard to rationalize recession and inflation going on simultaneously, but i think you'd agree that we do have bust your balls inflation at present along with an incipient recession. So maybe as we drop further into recession the inflation will cool some. Looks to me like the Fed, so far, is counting on recession to bring inflation under control. But trying to manage the US economy with the tools it has (which are considerable) is still a tall order, particularly when we are pumping dollar bills out into space as fast as our little dollar pumps can go and not many have started dropping back out'ta the sky yet. Like Rue Paul, I only have one thing to say to Fed Chairman Ben Bernanke: "You better work it girl!"