market appreciation week
We're freaking doomed, dude
Debt problems worsened, of course, but only to the usual degree of the average monthly increases in that particular bad news category (BNC), such as outstanding consumer credit increasing by $5.5 billion in March, which means that the consumer's debt load is rising at an annual rate of somewhere between 3% to 4.5% or so, and is already at $2.12 trillion, which is a tidy $15,193 per every freaking worker in this whole freaking country (140 million of them) who has a damn job. And the interest rate is rising on that debt, or is getting ready to rise, because interest rates are rising. And if lenders DON'T start raising their interest rates on credit balances, then their own bottom line (which is where profits would be found, if any) will suffer
That things are heading for doom was even at the meeting of the Berkshire Hathaway people in Omaha, which produced this memorable quote from Buffett's sidekick, Munger, who said "The present era has no comparable referent in the past history of capitalism. We have a higher percentage of the intelligentsia engaged in buying and selling pieces of paper and promoting trading activity than in any past era. A lot of what I see now reminds me of Sodom and Gomorrah. You get activity feeding on itself, envy and imitation. It has happened in the past that there came bad consequences."
And since we are talking about oil, let me give you the Mogambo Investment Tip Of The Day (MITOTD). I smile as I gently and confidently forecast that the current fall in the price of oil is a big chance for you to buy oil-related stocks, and oil futures if you have the inclination, because there is not one instance in all of history when a rising demand, a falling supply, coupled with the devaluation of the currency, resulted in lower-priced oil for that stupid country that so debased its currency. Never. And it never will happen, either. Ever.
Speaking of smelling the coffee, the markets bear watching this week. They've been swinging up and down, like a a seesaw for the past few weeks.
With oil having nowhere to go but up, the markets will be continually buffetted by reality.
So bury some gold under your flowers. This isn't Y2K.