"At some point [they] will have no choice but to turn the spigot off. Hard to pinpoint when that it'll happen. But when it does, the enthralling movie we've been watching since early March will be run backwards. Guaranteed."
I will start liquidating my investments and moving to cash over the next 4-6 weeks.
Just as a tsunami hits a coastline...it will recede - quite often followed by several series of smaller (or larger) tsunamis. On the ocean, there is one thing I have learned - waves travel in a series...3 or 4 in a "train".
The skies are brightening, the clouds are lifting, and the folks in Washington are saying "the storm is lifting".
They are wrong.
The fundamental bad behavior has not been corrected.
The trillions they have pumped into the world economy has kept the liferaft afloat longer than it should have.
The merciless master of cause and effect has been kept at bay by Bernanke and his horde.
The balance sheets were never tallied-up true....instead, they printed more fiction.
Another wave of financial disaster is heading toward our shores - and this one will reveal the true devastation that has occured - without the subterfuge and lies that have attempted to hide the truth...notwithstanding the recent desperate shenanigans of our government and financial industry to hide the true extent of the damage.
Hard assets (gold, silver) - that's where I'm putting my bets.
2009-08-23 Sunday Update:
You want to know why I remain pessimistic in the face of what appears to be a global easing of the recession?
FT.com - The risk of a double-dip recession is rising, By Nouriel Roubini
"this is a crisis of solvency, not just liquidity, but true deleveraging has not begun yet because the losses of financial institutions have been socialised and put on government balance sheets"
2009-08-25 Tuesday Update:
Senator warns of hyperinflation rivaling the 1980s
