Thursday, June 09, 2011

Logic is for losers

This is the mantra in the markets today. Take today's market rebound which was sparked by a decline in the US trade deficit. The US sold a few more products than expected (a good thing) because our weak dollar is making our products and services cheaper to overseas customers. Conversely we imported less than expected because US consumers and businesses are spending less. It seems like a wash, but after 6 straight down days the market was ready to go up for any reason today. By the way, the last time we had 6 straight down days? Feb 2009 right before the embarked on their first round of Quantitative Easing.

* Stat of the day: 30% of people with a 401k have take a loan out against it. Yikes!

This comes from an interview with a politician in Japan who is clearly jockeying for position in the next election cycle but this is some pretty strong rhetoric:

"Reconstruction will require a lot of money and resources, and the Diet is currently debating the need for a second supplementary budget. What is the urgency and how large should this second reconstruction budget be? Where would funding come from?"

A: That's another typical Japanese way of thought. No matter how much money it takes it must be done. With all that happening you can't live in Japan. Some day we may not be able to live in Japan.

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