The collision of global markets and social mood

Thursday, October 7, 2010

Why None Of These Market Moves Are Bullish

I see what can only be politely called terminal patterns in the Dow, oil, heating oil, gold, silver, platinum, palladium, copper, 10 year US notes, USD, EUR, JPY, GBP, AUD, CAD, CHF, and NZD.

This not bullish. This is induced euphoria. It will end badly.

Understand that central banks are desperate. Governments are desperate. True, they can affect markets in the near term with slight of hand, back door/front door stimulus, jawboning, concerted PR campaigns, currency debasement, and a laundry list of other dark practices. But why do they need to?

They must, in order to ensure their own survival. They are in a war. A war against free markets. They seek managed markets that yield to their will and allow continued unabated theft by inflation.

But what if the markets win? What if the markets can't be tamed? What would that look like?

Like watching an addict go through withdrawal, it wouldn't be pretty. But it would be the best thing.

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