RED MATTER

"Red Matter (BONDS) is an unstable substance with distinct gravitational properties, specifically a propensity to condense into quantum singularities, first seen in the 24th century. Red Matter must first be ignited for the condensation into singularity to occur." A black hole results.

Are you in the Black or RED? Here in the Midwest we are $1.2 billion short for the current state government budget and projected to be short $5 billion next fiscal year. Everyone blames everyone else.

The rotation from cash and bonds to equities, hard assets and real estate has begun....important "trend lines" were established this past week...this will be a multi-year process with incredible volatility as everyone will fight it....just as every person and newspaper reported the top is in gold as of yesterday! Unremarkably!

This rotation will result from the masses growing tired of small income (pre tax) from cash and bonds (and now losses) and begin to chase relative performance. Cash levels at 40-50 year highs in corporate America offer many opportunities for the leadership.

The world's most famous real estate investor said this week, "Dilution is the solution", current monetary policy is nothing but very inflationary and those looking for the next shoe to drop in commercial real estate will be disappointed."

Banks like BAC sold an additional $20 billion in stock this week....so shareholders are diluted...just like the "owners" of US dollars....as the Fed is in the RED and behind the real curve...they will be the one's hurt most by rising interest rates.. and the dilution/ devaluation of our currency..

Best relative performers last week...REITS and land holding companies..to name a few...oh ya...gold was basically unchanged for the week...

The most bullish 1st tier broker dealer (still guaranteed by the feds) said this past week...global GDP led by China....forecast double digit growth in both 2010 & 2011......THIS IS NOT IN THE EQUITY MARKETS. They ALSO FORECAST OIL ABOVE $100 AND GOLD $1,400.

OIL WILL BE IN DEFICIT SUPPLY WITHIN 18 TO 24 MONTHS. It is time investors, traders and people to start looking beyond each day.....almost no one we see is even thinking about next year or beyond.

We question policy on our newest renewal of war in the Afghanistan region.....has anyone asked how large (many people) the enemy force is???

Both Spock and the Nerada, commanded by Nero, were pulled into the black hole created by the Red Matter. He said, "Do what feels right".

Barkly Seen here years ago in a snow storm thinking this is going to be close!