News Bits…

Dow 14,000! Well, not necessarily. This is precisely the blow off I was looking for, to identify the end of this bull run. We may blow into 14K territory but I seem to doubt it. Wall Street doesn’t like rounded numbers (Think previous high 11,900). If you were waiting for just the opportunity to short this market, I’d say this is it.

In terms of gold however, the Dow went absolutely nowhere remaining within the ratio of 20.80. Similarly, almost every foreign index rose by figuratively the same amount… 1.5%.

What exactly is “indiscriminate repricing of otherwise fundamentally sound collateral”?

Could this be why we are losing in Iraq?

There are many restrictions to hedge funds in regard to getting in. Did you also know that there are now restrictions on getting out?

I wonder how many analysts would have thrown every dollar they had into the market after hearing this one?

Everyone is winning, even Vegas!

As for Bernanke’s speech this week, his notes may be read as so:

“Tell them that the Fed is not there to take care of inflation. Our job is just to make sure that they don’t recognize the inflation. Say inflation is well anchored. (They’ll know what that means). Remember, you’re a psychologist not an economist…. Oh, and if Paulson calls telling you that gold is in a hype rally, tell him to cover all the governments shorts, our game is up.”

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