Re-inflation Rally Part I: Falsehoods, fantasies, fabrications, and fake-outs - Eric Janszen

[Ann]

Re: Re-inflation Rally Part I: Falsehoods, fantasies, fabrications, and fake-outs - Eric Janszen

A 2009 reflection on the economy by Herman Melville - I like it!

Hah! Had the same thought. Melville as economist with a pinch of PJ O'Rourke.

[nme]

Re: Re-inflation Rally Part I: Falsehoods, fantasies, fabrications, and fake-outs - Eric Janszen

A 2009 reflection on the economy by Herman Melville - I like it!

[Jim Nickerson]

Re: Re-inflation Rally Part I: Falsehoods, fantasies, fabrications, and fake-outs - Eric Janszen

FWIW- Rosenberg's comments-

Deflation realities …

don’t ignore themTTACH]1448H]

Thanks for putting up the Rosenberg pdf.

[jk]

Re: Re-inflation Rally Part I: Falsehoods, fantasies, fabrications, and fake-outs - Eric Janszen

global Keynesian stimulus as an alternative to debt cancellation is a triumph of ideology over evidence

stimulus means the politicos get to spend a lot of money. wheee!
debt cancellation means the politicos get to apportion pain.
which would YOU rather spend your time doing?

which brings us to

“Do we never learn?”

the answer depends on the time frame. for the short term: absolutely! for the medium term: sort of. for the long term: nah!

Re: Re-inflation Rally Part I: Falsehoods, fantasies, fabrications, and fake-outs - Eric Janszen

FWIW- Rosenberg's comments-

Deflation realities …

don’t ignore them

rosenberg---deflation-and-treasuries April 2009.pdf

[cjppjc]

Re: Re-inflation Rally Part I: Falsehoods, fantasies, fabrications, and fake-outs - Eric Janszen

In 2005 I saw a fox business show telling people to take out a second mortgage and put the money into stocks. I thought, "Oh, lord this is criminal." They were right at the time, though.

I remember that. I thought it was awfull. No shame. No thought of the consequences if it turned out wrong for the viewer.

[cjppjc]

Re: Re-inflation Rally Part I: Falsehoods, fantasies, fabrications, and fake-outs - Eric Janszen

Great Article. Thanks.

[tombat1913]

Re: Re-inflation Rally Part I: Falsehoods, fantasies, fabrications, and fake-outs - Eric Janszen

Fantastic! Poetic. Damn good commentary!

[Adeptus]

Re: Re-inflation Rally Part I: Falsehoods, fantasies, fabrications, and fake-outs - Eric Janszen

"Global Keynesian stimulus as an alternative to debt cancellation is a triumph of ideology over evidence that will end in inflationary tears." -EJ

Love it! Best economic quote of the year to date!

Looking forward to reading part 2 tomorrow.

Adeptus

[Down Under]

Re: Re-inflation Rally Part I: Falsehoods, fantasies, fabrications, and fake-outs - Eric Janszen

Are you sure that was not AUD$82 ;)

Let me assure you that is/was not a mistake I make.

[zenith191]

Re: Re-inflation Rally Part I: Falsehoods, fantasies, fabrications, and fake-outs - Eric Janszen

Are you sure that was not AUD$82 ;)

[Down Under]

Re: Re-inflation Rally Part I: Falsehoods, fantasies, fabrications, and fake-outs - Eric Janszen

Eric and I did a deal way back when in which I ended up with 100,000 shares of Cisco in the spring of 2000, with a cost basis of $0.20 a share. I called Goldman the day it hit my account and said sell. All of it. Today.

I used to work at Cisco, amazing company. I believe Cisco actually hit 82 but there must have been some sort of stock split since then as a current chart does in fact show the high as 69.

Be that as it may, a VP at Smith Barney, who knew a lot about Cisco, was telling all his friends and relatives to buy Cisco at 40, after it had hit 82, since it was cheap. Well, it got down to about 9 around 9/11.

But, this bloke was an intelligent guy and genuinely believed that at 40, Cisco was cheap.

[ax]

Re: Re-inflation Rally Part I: Falsehoods, fantasies, fabrications, and fake-outs - Eric Janszen

Metalman, you are too kind. You left out the following:

1/08 "Goldman Sachs (GS) makes more money than every other brokerage firm in New York combined and finishes the year at $300 a share. Not a prediction—an inevitability. In fact, it’s only January, and I think it’s already come true."

"Google stock reaches $1,000. The company becomes one of the top three companies in the U.S. in market capitalization... and successfully challenges Microsoft (MSFT) for operating-system dominance."

"Apple will reach $300."

9/30/08-"Jim Cramer Admits: "I Screwed Up" In Recommending Wachovia Stock Two Weeks Ago Because I Liked The CEO"

8/1/08-""I am indeed sticking my neck out right here, right now, declaring emphatically that I believe the market will not revisit the panicked lows it hit on July 15. and I think anyone out there who’s waiting for that low to be breached is in for a big disappointment and [they’re] missing a great deal of upside."

6/5/08-"At an investment symposium I attended last night, someone asked me whether I thought Lehman Brothers (NYSE: LEH) (Cramer's Take) was going under. I said, no, no I didn't think so. It's got a great franchise with a good cash position, reduced leverage, much better management than Bear and a buyback that's kicking in that wouldn't if things were as bad as the bears make it out to be."

[goadam1]

Re: Re-inflation Rally Part I: Falsehoods, fantasies, fabrications, and fake-outs - Eric Janszen

I would like to thank the banskters for keeping oil cheap for me.

Re: Re-inflation Rally Part I: Falsehoods, fantasies, fabrications, and fake-outs - Eric Janszen

Bart posting some interesting corollaries to this topic on his "they do ring a bell" thread today. My guess is that pure nitroglycerine poured in copious quantities and sluicing into the markets will jolt the market's cadaver to life, and it will rise and walk in juiced up Frankenstein steps, and walk, and walk and walk. :eek: