The Crack-out Game

Observing the mispricing of assets is what capital market analysis is all about..separating the spin from the facts, observing crowd behaviour..and finally trying to get the timing right..which is probably the hardest...because of human emotion. As well as seeing what is being manipulated.

More facts:

1) Crowd panic in the markets yesterday had a negative yield in treasury bills...people were paying the government to hold their money for the next 90 days.
2) We are receiving an inordinate amount of calls from almost everyone we know "concerned" for America's future and the stock market in particular.
3) State governments panicking from loss of tax revenues....are introducing new "bond bills" to allow even more borrowing. "DFLers say the climate is right to push the limit a bit on borrowing".
4) Law makers grilling secretaries on policy should be ashamed of themselves....they alone (and their policies) are spooking business leaders to not hire anyone....what a joke to pretend wdc, llc can save the day!
5) Most American stocks are below where they traded ten years ago...and are not expensive.
6) The Venezuelan economy is in tatters...they can not invest in their own national oil company...(key to American imports)....described locally as in a new panic mode.
7) Spain's largest oil company also does not have enough cash reserves to grow it's oil production.
8) By 2030, China will have more than 220 cities with populations above one million people.
9) The world's largest ore company said, China might need up to 400% more steel in the next 15 years than they consumed in the past 15 years.
10) The US Dollar is over valued and the Chinese Yuan is undervalued. The debtor nation verses the creditor nation....their population is 300 PERCENT LARGER THAN OURS.

We looked back to where we were 12 months ago....hard to reflect on the pain and suffering for so many....and what a difference a year makes....

Remember this great recession was brought on by poor regulatory controls and the abuse of debt.....this is not an equity crisis....this is a debt crisis.........too much leverage....AND SPENDING.

How can it be this leverage (or the bonds supporting it) are not properly risk priced? The debt markets are being manipulated, the media is supporting the political leaderships desire to continue the national panic on the economy.

This country's super blue chip publicly traded (and private) companies are undervalued and will attract the most amount of new capital going forward....they are mispriced too.

Danny Boy seen here observing the early setting winter sunset.