Everyone understands that as soon as the Christmas sugar is over - things are going to go a bit sideways.
If we are lucky. The market is getting frothy. Oil is collapsing every single day. Interest rates are generally in the 3.6/7%ish range. It's almost getting hard to find a rate OVER 4%. If they do go down much more even I might get twitchy on my house. I thought 4.25 was the best I'd ever get. If they will even lend at that point. There is a sort of death cross there somewhere.
That was the biggest lesson of the recession. Banks may just stop lending in a deflationary period.
Make sure you don't need credit.
I heard someone last night say rates could drop another half to three quarter basis points. Enjoy your holiday to the fullest people - because this is where the pain gets good. Almost all of the countries in Europe are growing at stall speed. Engines sputtering and the whole nine.
After the last election I couldn't believe anyone felt better about anything. The Dems are going to scorch the earth now. I bet they are taking the Holiday to rest up.
Anyway, to get back on track with the subject line...
The past few weeks whenever I've read a headline with a denial in it - I get filled with dread. For example :
Energy lenders not facing new '80s-style 'bloodbath': CEO.
When I read this I immediately said fuuuuuUUUUck. Now we are going to face an 80's style energy bloodbath? I'm not sure fully what that means, but I bet it's going to suck.
Then today another one. Cashin:
Why it's not like 1998 all over again. I really don't know if that is going to turn out to be true, but Putin has gone cocopuffs crazy. A third grader could have figured out that inflation would skyrocket. When this whole thing first started I even blogged about it in
The world is being run by lunatics. This was back in August!
Russia to block U.S. agricultural imports.
"When I first read this story I kinda snickered to myself. Good luck with all of that, I said to myself. I'm fairly confident Russia can't grow much. And it takes a couple of years to increase your livestock. This is going to hurt them way more than it is going to hurt us. Their people are going to starve!
As I thought about it more though - this is the scenario that causes those crazy hyperinflation periods in history to occur. If it does indeed happen - too much money will be chasing to few goods and services. Enter - hyperinflation. And Putin knows it because he's already "undertaking measures to guard against quick price hikes".
Look I know Mother Russia is tough. But when I see Russia these days - I see it thought the lens of a dash cam. And it looks to me like everyone in Russia has pretty new cars. Made in the last decade. This is a new generation. They might not be exactly as tough as the last. Maybe they like new cars. Or food. Maybe....they are less willing to suffer. You never know.