TAR BABIES

Temporary Auction Facility (TAF).....this is where the Federal Reserve acts as a lender of last resort. As we have said for sometime the money center banks, hedge funds, private equity and broker dealers are now drowning in their own toxic paper. This will take years to work through...most of these entities have negative net worth and the fed will lower interest rates and offer endless capital to work with these people to keep them solvent...they have no choice...stay away from this space.

This current market volatility is an opportunity for those who can see and appreciate the market rotation taking place in a reflationary global economy.

Herb Brooks the famous coach of the 1980 Olympic Team always said, "play your game". He also said, "You don't want to be one of these people who sleepwalk through life, it's about the luxury of exhaustion. That's the peace of mind, knowing your efforts were the best." Herb wanted his players to be and play outside their comfort zone....he wanted his players to get to another level of execution.

This can be related to the stock market today...as all the traders focus on the negative and look backwards dealing with this mess they created....the tape is saying something else...

The best run companies that don't have to worry about their cash, debt, technology or customers are growing and are very profitable.

Our favorites continue to focus on scarcity values and the growing global market place.

Oil, Nat gas, coal, food, electricity, infrastructure, water, shipping, seed and emerging markets like China, India and Brazil. The current market leadership.

That is our sixty second "elevator speech", if you can't keep it simple and be outside the markets comfort zone you'll never make money!

Danny Boy seen here enjoys his transition from being a puppy to a rapidly maturing pack animal.