Saturday, December 20, 2008

I’ve been “under the weather” (aren’t we all?) with a sinus infection. Hence fewer posts. Now I’m on the second course of prescription antibiotics, this time with a steroid kicker. Does this stuff affect your mind? Is the long-awaited $600 trillion derivatives scheme tsunami coming on shore, or am I having a bad nasal hallucination. I usually spend Saturday morning listening to the 3-hour Financial Sense Newshour. It is well worth it, especially if want to know what is happening to you. If you can only listen for one hour, choose the second hour (December 20, 2008). Danielle Park has a book - Juggling Dynamite: An insider's wisdom about money management, markets, and wealth that lasts. She’s very articulate and gives good advice. Also, here is the best graph explanation of current financial situation in pdf form that I have seen. Not satirical.


  1. Anonymous11:22 AM

    So the Casey Report predicts inflation.

    That's not what I'm experiencing.

    Housing prices are dropping, car prices are dropping, and prices at the Mall are dropping.

    Cash is king.

    Where is the inflation?

    If you want a good opinion, that has been spot on about his mess, try Calculated Risk.

  2. Agreed on the Casey report. Calculated risk is a great blog. Another good read is Mish at
    who eats these "inflationistas" for breakfast. He did a comprehensive takedown of Peter Schiff a couple weeks back. (I note a Schiff video a couple entries up). Basically, we're going to have deflation until we don't. There's probably going to be inflation at some point in the future but the money being destroyed in the system is far more than is currently being created. Also, the banks can't really do much fractional reserve lending because most of the folks that want to borrow have already done so. There might be a credit crunch but there's also a real dearth of QUALIFIED lendees and the banks are starting to be responsible about that again. I think deflation, then just plain ole grinding Japanese style stagnation with zombie banks. Sayanara to any growth for at least a couple years.