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Macro Trends: America’s New Chapter

The stock market has rallied since March 2009 on cheap money and undervaluation; the former is unsustainable and the latter no longer the case.READ»

5 Reasons to Consider Buying SPY Puts Tuesday

The market action since January 19th shows that the momentum from excessive liquidity is ebbing before the recovery can bloom. Now, the market is searching for corroboration to justify current levels.READ»

Today in the Market: Bargain Hunting or Short Covering at the Close?

The close today was as chaotic and confusing as the jobs report released before the opening bell. Unemployment went down as more jobs were lost. As always, there was a conflict between the household survey and payroll data.READ»

Replace Ben Bernanke with Paul Volcker

At first blush, this idea may seem radical, but these are not ordinary times. What are the benefits if President Obama figuratively walks out to the pitcher’s mound, take the ball from Bernanke, and say, “Ben, you threw one hell of a game for eight innings. We can take it from here; the economy is heating up.” Then, Obama turn towards the bullpen forms his hand into the shape of a clam, opens, and closes it twice, to signal for his major league inflation closer – Paul Volcker.READ»

Replace Ben Bernanke with Paul Volcker

At first blush, this idea may seem radical, but these are not ordinary times. What are the benefits if President Obama figuratively walks out to the pitcher’s mound, take the ball from Bernanke, and say, “Ben, you threw one hell of a game for eight innings. We can take it from here; the economy is heating up.” Then, Obama turn towards the bullpen forms his hand into the shape of a clam, opens, and closes it twice, to signal for his major league inflation closer – Paul Volcker.READ»

The Next Decade: Best of Times, Worst of Times

This economic mutation is possible and probable because, heretofore, it was near impossible to calibrate daily, or hourly, reasonably valuations, arrive at informed decisions, and implement actions, either side of a transactions, on a sustainable basis. Today, the world contains seven billion individual economies, tethered together, communicating, and constantly reformulating, digitally.READ»

Should We Reinstate Glass-Steagall?

Under the Glass-Steagall Act, when enacted in 1933, regulators protected bank depositors from stock market speculation and other investment banking activities. Over time, we also generated enough wealth to end the Great Depression, create the largest middle-class any nation has experienced in history. We were able profitably expanded the aviation, automobile, and pharmaceutical industries.READ»

Fourth Quarter Outlook: Become a gold bug, now

So, why become a gold bug, now, (GLD, GDX) you ask. The simple answer is the respite from Armageddon we purchased with poorly planned deficit spending during 2008’s financial implosion has an expiration date. Vigorish charged by the world for our initial greed and incompetent rescue will soon come due.READ»