Thursday, October 16, 2014

High Energy Prices Are Deflationary

As I've stated in the past. It seems to me that high prices of energy are in and of themselves deflationary. This is counterintuitive. But lower energy will stimulate people to move about and do things. And as they do this they spend money and get creative ideas. And then they borrow.

As long as this latest downtrend in energy prices is due to oversupply that is a good thing.

This may be the headfake traders are always on the lookout for. That last whiff of deflation sentiment that signals a bottom in prices......

I have always contended that high energy prices were deflationary.

Control your risk,

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One, Two, Three...

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How Could An ED Miss Ebola?

I work in an emergency department.

This is how they could miss the first case of an exotic disease in the country.

HOW COULD THEY MISS EBOLA?


We won't miss the next one.(s)

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Wednesday, October 15, 2014

Two

Now it is two.

Groan.

TWO



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TBT

GH

Irrationality

Irrationality


And by the way. Did you know that silver kills germs.

I hesitate to mention this here on my allegedly serious site. But when I googled silver and Ebola I got many sites that showed how to concoct colloidal silver.

I don't know if it really would kill Ebola virus, but it is out there. And when I mentioned it to my wife she said she had noticed advertisements in the store, and mentions of colloidal silver on social pages.
Neither of us could be considered believers in alternative medicine.
But it wouldn't surprise me if a rumor could sweep the nation on the benefits of owning silver.

just thinking.

And the selloff in the markets seem to be getting rather irrational.

There has been one death in this country. And one transmission of the virus. ONE.

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Ebola v.

A link to Wikipeidia:

Ebola Virus


It has occurred to me that money passing from hand to hand may be a problem.

Clorox anyone?

In fact this may be another chronic problem, and that the recent stock weakness is a "shot over the bow".
After the initial shock, life will resume. With precautions.

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Monday, October 13, 2014

I'll Say It

People are trying to find a fundamental answer for the recent market declines.

Ukraine?  Probably not.

Europe weakness. Not new. And fixable with policy changes.

U.S. weakness? Maybe. But the Fed won't raise rates if that is so... Ditto the EU thing.

Ebola? This may be the cause. Ebola may not be easily communicable. But it will cause terror. And it would cause a dramatic decrease in activity by everyone if the threat became credible.
And I'll say out loud what I've heard in private.
It wouldn't be very hard for ISIS or al Queda to get people infected and move them around the world.

And if they didn't seek help they would infect many, particularly if they wanted to infect people.

That would justify fears of a dramatic economic slowdown.

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Bounce

SPY is running out of volume as it declines.

Bounce imminent.

??

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