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November Sector Review


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Guest The CoinGuy
Roger that TCG. Right or wrong in his -predictive- efforts, the man's tenacious in his -investigative- efforts, and he's never charged -me- a dime for 'em.

 

I'm rooting for him.

I'll tell ya, I was happy when he sent me one of those nice Comet Pins and a certificate.

 

 

TCG

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Wooooooooooooooooooooooooowwwzzzzzzaaaaaaaaaa

 

 

Ol'a TE.

 

You're kidding right????

 

On the possibility that you aren't....the pos looks fishy to me...maybe its just me but BSX is a takeout in my book. GSK, Novartis and others are NOT going to stand by idly and watch Johnny John own the medicated stent market.

 

You know what the number one killer in 'Merika is????

 

Aging pop. Smokers, Obese 30somethings, Hell even Aitkin's dead, nuff said.

 

BSX looks like steak in a crowded room of pissed off USC linemen(regards and sympathies K-Wave). The options look cheap...tooo cheap, and that 6mnth/3mnth looks like a siren song to these eyes- this thing could pull a DNA size erection and then what? :o

 

My two cents anyway.

 

stay nimble, stay focused and hey smoke 'em.

 

so says I

 

MERCILESS

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Greenspan's big experiment has been to ignore the money supply metrics ("I don't know how to measure money supply" - or words to that effect

Don?t believe that for a second.

 

The industrial economy is on deep doo-doo and now that the refis have stopped pumping, there's less demand for money even at very low rates. So Greenspan reduces the supply in order to maintain his target rate. He knows that letting the short rates slip would be a negative signal of the first water.

 

Well I certainly agree completely with the last statement but I believe you are missing my original point which was that the stated productivity numbers combined with the sub-productivity GDP growth would theoretically have widened the output gap.

 

Combined with lack of any kind of inflationary response from the first half?s rapid monetary growth this should have given the Fed carte blanche to really let it rip on monetary growth, based on what has so far essentially been their supply side panacea of incredibly easy money (which your argument IMO wrongly frames solely in terms of the Fed funds rate).

 

Now admittedly I would be the first to recognise that based on past post-bubble experience it is impossible for central banks to sustainably engineer money supply growth in the face of strong deflationary forces but they haven?t even tried and as Doc shows have in fact quite dramatically reigned in open market operations.

 

However, this de facto tightening of the policy stance and - we seem to both agree - tacit admission that it has not had the desired effect is certainly not what either equity and commodity bulls appear to believe is going on.

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I have one small question regarding your assertion of deflation:  Was there ever a time that any power-group ever DEflated a currency?  Serious question...not being facetious.

Dozer,

 

I don?t believe any vested interest ?group? exists with anywhere near the market power to sustainably manipulate a major currency

 

Hope that answers your question.

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Just one other comment on the inflation issue; serious independent academics with no agenda along with private sector and CB economists on balance believe that official statistics in fact overstate inflation

 

Take it or leave it.

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