PEAK BANK$TERS

When we speak to people about the rising stock market..several observations stand out....

1) Everyone thinks the equity market is over priced "after it's 60% run up".
2) Everyone thinks the stock market will go down when interest rates start to go up.
3) Gold is starting to get peoples attention....the papers say no more gold can be found....Peak Gold.
4) Everyone thinks low interest rates are here to stay...and that is OK...and normal....

First: The S&P 500 FELL 26% from January to March of this year.....then the stock market rallied.....to where it is today....and it is up 25% from exactly one year ago....and the DJIA is still the worst performing stock market in the world year to date except Japan...

Second: We think when the Fed starts to raise interest rates the Stock Market will rise...probably dramatically...all the pros know the Fed is now way behind the curve...real interest rates are much higher already to the public. The likes of GS and JPM are taking advantage of the public today with the real free Fed guaranteed money.

Gold is telling us many things.....one.. it is still under priced adjusted for real inflation...and just starting to catch up...the US dollar will continued to be severely diluted (devalued)....the public really has not yet caught on to this..they will start to enter the market when it passes through $1,200.00/ oz....

Interest rates are going higher.....the flood of money sitting in debt will be devalued as well with inflation....once sellers start their actions......the bubble will burst....current record cash on the sidelines plus new cash from the sale of bonds will have only two choices......hard assets and stocks....remember more fortunes were lost in the 1930's from bonds than stocks....

Seniors are getting hit the hardest right now....zero return on hard earned savings accounts....bad general advice to go into bonds thinking they are safe at these levels....plus rising new mandated heath care costs....you can go to jail if you don't pay...AND RISING TAXES.

NO ONE WE KNOW WILL HIRE ANY NEW EMPLOYEES IN THIS ENVIRONMENT WHERE THE RULE OF LAW IS CHANGING and spending is out of control...the new not normal...debt needs to be paid down and expenses cut at the state and federal level......Mid Terms anyone?? The Democrats don't want to be graded.

China now has more millionaires than the UK....fourth behind the USA, Japan and Germany...any guesses on this trend??

Danny Boy seen here is not surprised nobody wants the top banking jobs in NYC anymore....why would they work for the other city called WDC, LLC?