Yesterday Mr Bernakie told us what he really thinks about the global economy. Not sure if you heard it he said we will have massive unemployment, asset deflation and servere bankruptcies both on a country level and consumer level. You might have missed it you might have heard him say we are buying 1trillion in treasuries to artificially lower the interest rates to make you guys borrow more to TRY and prevent the above scenario, you may have heard a bullish tone, a reason to buy stocks. Remember interest rates should have built in a risk premium and in todays market with rates so low and the borrower such a risk, I dont see much risk premium at all. So I dont see this as a bullish sign I saw it as Bernakie telling us what he really knows and thinks, don't act on what one says, act on what one does and Ben told me we in a real pickle and its bigger than we ALL thought.
But we can still make money in this environment just keep looking at the trees and judge them individually dont just see the forest.
Giddy Up
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